General Dynamics Target of Unusually High Options Trading (NYSE:GD)

General Dynamics Corporation (NYSE:GD) saw unusually large options trading on Thursday. Stock investors purchased 163,813 call options on the company. This represents an increase of 10,387% compared to the average daily volume of 1,562 call options.

Insider Activity at General Dynamics

In related news, VP David Paddock sold 20,360 shares of the company’s stock in a transaction that occurred on Wednesday, December 17th. The stock was sold at an average price of $334.92, for a total value of $6,818,971.20. Following the sale, the vice president directly owned 36,644 shares in the company, valued at $12,272,808.48. This represents a 35.72% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. 1.50% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On General Dynamics

Large investors have recently modified their holdings of the company. Dunhill Financial LLC grew its holdings in shares of General Dynamics by 620.0% in the third quarter. Dunhill Financial LLC now owns 72 shares of the aerospace company’s stock valued at $25,000 after acquiring an additional 62 shares in the last quarter. KERR FINANCIAL PLANNING Corp purchased a new position in General Dynamics in the third quarter worth $25,000. Dagco Inc. bought a new position in General Dynamics in the 4th quarter valued at $25,000. Halbert Hargrove Global Advisors LLC purchased a new stake in shares of General Dynamics during the 3rd quarter valued at $26,000. Finally, Burkett Financial Services LLC increased its position in shares of General Dynamics by 650.0% during the 3rd quarter. Burkett Financial Services LLC now owns 75 shares of the aerospace company’s stock valued at $26,000 after purchasing an additional 65 shares during the last quarter. 86.14% of the stock is currently owned by institutional investors.

Wall Street Analyst Weigh In

GD has been the topic of a number of recent analyst reports. Vertical Research upgraded shares of General Dynamics from a “hold” rating to a “buy” rating and set a $400.00 price target on the stock in a research report on Monday, October 27th. Deutsche Bank Aktiengesellschaft reissued a “buy” rating and set a $400.00 target price on shares of General Dynamics in a research note on Wednesday, October 8th. Melius Research raised shares of General Dynamics to a “strong-buy” rating in a research report on Tuesday, October 28th. BNP Paribas upgraded General Dynamics to a “strong-buy” rating in a report on Tuesday, November 18th. Finally, Wolfe Research boosted their price objective on General Dynamics from $400.00 to $415.00 and gave the company an “outperform” rating in a research note on Monday. Three investment analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, ten have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $366.70.

General Dynamics Stock Up 0.7%

NYSE:GD traded up $2.60 during trading hours on Thursday, reaching $368.60. The company had a trading volume of 1,462,130 shares, compared to its average volume of 1,189,154. General Dynamics has a twelve month low of $239.20 and a twelve month high of $368.78. The company has a quick ratio of 0.87, a current ratio of 1.40 and a debt-to-equity ratio of 0.29. The firm has a market cap of $99.57 billion, a price-to-earnings ratio of 23.89, a P/E/G ratio of 1.62 and a beta of 0.41. The business’s 50-day simple moving average is $344.11 and its two-hundred day simple moving average is $329.85.

General Dynamics (NYSE:GD) last released its quarterly earnings data on Friday, October 24th. The aerospace company reported $3.88 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $3.69 by $0.19. The company had revenue of $12.91 billion for the quarter, compared to analysts’ expectations of $12.49 billion. General Dynamics had a net margin of 8.18% and a return on equity of 18.27%. The business’s revenue was up 10.6% on a year-over-year basis. During the same quarter in the prior year, the firm earned $3.35 EPS. General Dynamics has set its FY 2025 guidance at 15.300-15.35 EPS. On average, equities analysts expect that General Dynamics will post 14.83 earnings per share for the current year.

General Dynamics Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, February 6th. Shareholders of record on Friday, January 16th will be paid a $1.50 dividend. This represents a $6.00 dividend on an annualized basis and a yield of 1.6%. The ex-dividend date of this dividend is Friday, January 16th. General Dynamics’s dividend payout ratio (DPR) is 38.89%.

Key Stories Impacting General Dynamics

Here are the key news stories impacting General Dynamics this week:

• Positive Sentiment: Wolfe Research raised its price target on General Dynamics to $415 (from $400) and kept an “outperform” rating — a meaningful upward revision that suggests analysts see ~12% upside versus current levels. This is likely supporting buying interest. Wolfe Research raises GD PT to $415 TickerReport coverage
• Positive Sentiment: TD Cowen bumped its GD target to $390 (from $370) and maintained a “buy” rating, another analyst endorsement that supports the stock’s move higher. TD Cowen raises GD PT to $390
• Positive Sentiment: Unusually large call-option buying occurred — about 163,813 calls traded (a >10,000% jump vs. average). Heavy call flow often signals bullish conviction or hedged directional bets, which can amplify near-term upside and volatility.
• Neutral Sentiment: Media and market commentators are highlighting defense and financial stocks as favored sectors for the year, which provides sector-level support for GD but is not company-specific. Evans May Wealth on defense stocks
• Neutral Sentiment: Industry pieces (L3Harris Pentagon award, Benzinga roundup of defense buys) underline strong Pentagon spending and contracting momentum that benefits prime contractors like GD; however, policy proposals on buybacks/executive pay were flagged as potential headwinds, though unlikely to become law. L3Harris Pentagon contract Benzinga: defense stocks to buy
• Neutral Sentiment: An analysis estimating GD’s intrinsic value was published — useful for longer-term investors but unlikely to move the stock immediately. Intrinsic value analysis

General Dynamics Company Profile

General Dynamics is a major American aerospace and defense contractor that designs, manufactures and supports a broad range of products and services for government and commercial customers worldwide. Headquartered in the United States (Reston, Virginia), the company supplies platforms and systems used by armed forces, civil authorities and private operators across multiple domains including air, land, sea and cyber.

Its principal activities span several operating businesses: a business aviation unit that develops and supports Gulfstream business jets; land systems that produce armored combat vehicles and related logistics and sustainment services; marine systems that design and construct submarines and surface ships for navies; and mission systems and information technology operations that provide command-and-control, communications, cybersecurity and systems-integration services.