General Dynamics (NYSE:GD) Cut to “Hold” at Vertical Research

Vertical Research downgraded shares of General Dynamics (NYSE:GD) from a buy rating to a hold rating in a research report sent to investors on Monday, MarketBeat Ratings reports. The brokerage currently has $290.00 price objective on the aerospace company’s stock, down from their previous price objective of $352.00.

Several other analysts also recently weighed in on the stock. Wells Fargo & Company lowered their price target on shares of General Dynamics from $322.00 to $295.00 and set an “equal weight” rating for the company in a research note on Wednesday, December 11th. Deutsche Bank Aktiengesellschaft dropped their target price on General Dynamics from $303.00 to $295.00 and set a “hold” rating for the company in a report on Thursday, January 2nd. Royal Bank of Canada cut General Dynamics from an “outperform” rating to a “sector perform” rating and decreased their price target for the stock from $330.00 to $290.00 in a research note on Thursday, December 19th. Susquehanna increased their price objective on General Dynamics from $333.00 to $352.00 and gave the company a “positive” rating in a research note on Thursday, October 17th. Finally, Citigroup lifted their target price on shares of General Dynamics from $331.00 to $354.00 and gave the stock a “buy” rating in a research note on Thursday, October 10th. One investment analyst has rated the stock with a sell rating, ten have assigned a hold rating, nine have given a buy rating and one has issued a strong buy rating to the company. According to data from MarketBeat, the stock has an average rating of “Hold” and a consensus target price of $308.18.

General Dynamics Price Performance

GD opened at $261.35 on Monday. The company has a current ratio of 1.32, a quick ratio of 0.80 and a debt-to-equity ratio of 0.32. The stock has a market capitalization of $71.86 billion, a P/E ratio of 19.90, a PEG ratio of 1.62 and a beta of 0.61. The stock has a 50-day moving average price of $277.81 and a 200-day moving average price of $289.54. General Dynamics has a 12-month low of $247.36 and a 12-month high of $316.90.

General Dynamics (NYSE:GD) last issued its quarterly earnings results on Wednesday, October 23rd. The aerospace company reported $3.35 EPS for the quarter, missing analysts’ consensus estimates of $3.48 by ($0.13). The business had revenue of $11.67 billion for the quarter, compared to the consensus estimate of $11.65 billion. General Dynamics had a net margin of 7.90% and a return on equity of 16.59%. The firm’s revenue was up 10.4% on a year-over-year basis. During the same quarter in the previous year, the business earned $3.04 earnings per share. Equities analysts predict that General Dynamics will post 13.84 earnings per share for the current fiscal year.

General Dynamics Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, February 7th. Stockholders of record on Friday, January 17th will be paid a $1.42 dividend. This represents a $5.68 dividend on an annualized basis and a dividend yield of 2.17%. The ex-dividend date of this dividend is Friday, January 17th. General Dynamics’s payout ratio is presently 43.26%.

General Dynamics announced that its Board of Directors has authorized a stock buyback program on Wednesday, December 4th that permits the company to repurchase 10,000,000 outstanding shares. This repurchase authorization permits the aerospace company to purchase shares of its stock through open market purchases. Shares repurchase programs are usually an indication that the company’s leadership believes its shares are undervalued.

Insiders Place Their Bets

In other General Dynamics news, VP Christopher J. Brady sold 5,540 shares of the firm’s stock in a transaction that occurred on Friday, November 22nd. The shares were sold at an average price of $280.91, for a total transaction of $1,556,241.40. Following the completion of the transaction, the vice president now owns 20,296 shares of the company’s stock, valued at approximately $5,701,349.36. This trade represents a 21.44 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. 1.52% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On General Dynamics

Hedge funds have recently added to or reduced their stakes in the stock. MFA Wealth Advisors LLC boosted its stake in General Dynamics by 241.7% in the 3rd quarter. MFA Wealth Advisors LLC now owns 82 shares of the aerospace company’s stock worth $25,000 after purchasing an additional 58 shares in the last quarter. Hara Capital LLC purchased a new stake in shares of General Dynamics during the third quarter valued at approximately $26,000. Lowe Wealth Advisors LLC bought a new stake in shares of General Dynamics during the third quarter valued at approximately $30,000. True Wealth Design LLC purchased a new position in General Dynamics in the 3rd quarter worth approximately $34,000. Finally, Meeder Asset Management Inc. lifted its position in General Dynamics by 385.2% in the 2nd quarter. Meeder Asset Management Inc. now owns 131 shares of the aerospace company’s stock valued at $38,000 after acquiring an additional 104 shares in the last quarter. 86.14% of the stock is owned by institutional investors.

General Dynamics Company Profile

General Dynamics Corporation operates as an aerospace and defense company worldwide. It operates through four segments: Aerospace, Marine Systems, Combat Systems, and Technologies. The Aerospace segment produces and sells business jets; and offers aircraft maintenance and repair, management, aircraft-on-ground support and completion, charter, staffing, and fixed-base operator services.