General Dynamics Corp. (GD) Rating Lowered to Hold at Zacks Investment Research
General Dynamics Corp. (NYSE:GD) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a note issued to investors on Monday.
According to Zacks, “General Dynamics recently won a contract worth $125.6 million, to offer program management and system support for Rescue 21, the U.S. Coast Guard's advanced communications system. Among other notable deals, the $430 million deal that the company won to support the 2020 Census Questionnaire Assistance (CQA) program and the $105.5 million deal for Phase 2 of the Sea Dragon Submarines Development program buoy optimism. Going ahead, General Dynamics expects to see solid growth momentum post 2017, following the introduction of the G500 in 2018, major revenue recognition from Combat Systems’ huge backlog and the Ohio-class Replacement (ORP) submarine program. However, competition and possibility of defense budget cuts remain major headwinds. Also, the company’s dependence on international sales for a major portion of its revenues exposes it to the risk of currency fluctuations and other geo-political risks.”
GD has been the topic of several other research reports. Jefferies Group reiterated a “buy” rating on shares of General Dynamics Corp. in a report on Wednesday, August 3rd. Sanford C. Bernstein upgraded General Dynamics Corp. from a “market perform” rating to an “outperform” rating and set a $180.00 price objective on the stock in a report on Wednesday, August 10th. They noted that the move was a valuation call. Argus boosted their price target on General Dynamics Corp. from $160.00 to $165.00 and gave the company a “buy” rating in a report on Tuesday, August 2nd. Deutsche Bank AG restated a “hold” rating on shares of General Dynamics Corp. in a report on Friday, September 23rd. Finally, Citigroup Inc. boosted their price target on General Dynamics Corp. from $162.00 to $185.00 and gave the company a “buy” rating in a report on Tuesday, September 6th. Three investment analysts have rated the stock with a hold rating and sixteen have given a buy rating to the company’s stock. The company has a consensus rating of “Buy” and a consensus price target of $159.27.
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Shares of General Dynamics Corp. (NYSE:GD) opened at 151.34 on Monday. General Dynamics Corp. has a 12 month low of $121.61 and a 12 month high of $156.97. The company has a market cap of $46.08 billion, a price-to-earnings ratio of 16.09 and a beta of 0.76. The company’s 50 day moving average price is $152.76 and its 200 day moving average price is $144.54.
General Dynamics Corp. (NYSE:GD) last issued its quarterly earnings results on Wednesday, July 27th. The company reported $2.44 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $2.31 by $0.13. General Dynamics Corp. had a return on equity of 27.74% and a net margin of 9.53%. The firm earned $7.66 billion during the quarter, compared to analyst estimates of $7.88 billion. During the same quarter in the previous year, the company posted $2.27 earnings per share. The company’s revenue was down 2.8% compared to the same quarter last year. On average, equities analysts expect that General Dynamics Corp. will post $9.73 EPS for the current fiscal year.
The business also recently disclosed a quarterly dividend, which will be paid on Thursday, November 10th. Stockholders of record on Friday, October 7th will be paid a $0.76 dividend. The ex-dividend date of this dividend is Wednesday, October 5th. This represents a $3.04 annualized dividend and a dividend yield of 2.01%. General Dynamics Corp.’s dividend payout ratio (DPR) is 32.27%.
In other General Dynamics Corp. news, VP Gregory S. Gallopoulos sold 39,000 shares of the stock in a transaction dated Friday, July 29th. The shares were sold at an average price of $146.58, for a total transaction of $5,716,620.00. Following the completion of the transaction, the vice president now owns 153,848 shares of the company’s stock, valued at approximately $22,551,039.84. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Robert W. Helm sold 149,910 shares of the stock in a transaction dated Thursday, September 8th. The shares were sold at an average price of $152.43, for a total transaction of $22,850,781.30. Following the transaction, the insider now directly owns 108,119 shares of the company’s stock, valued at approximately $16,480,579.17. The disclosure for this sale can be found here. 6.80% of the stock is owned by insiders.
Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Central Bank & Trust Co. increased its stake in shares of General Dynamics Corp. by 6.7% in the third quarter. Central Bank & Trust Co. now owns 651 shares of the company’s stock valued at $101,000 after buying an additional 41 shares during the last quarter. WFG Advisors LP increased its stake in shares of General Dynamics Corp. by 0.3% in the second quarter. WFG Advisors LP now owns 753 shares of the company’s stock valued at $105,000 after buying an additional 2 shares during the last quarter. Signaturefd LLC increased its stake in shares of General Dynamics Corp. by 5.7% in the second quarter. Signaturefd LLC now owns 818 shares of the company’s stock valued at $114,000 after buying an additional 44 shares during the last quarter. Compagnie Lombard Odier SCmA increased its stake in shares of General Dynamics Corp. by 820.0% in the second quarter. Compagnie Lombard Odier SCmA now owns 920 shares of the company’s stock valued at $128,000 after buying an additional 820 shares during the last quarter. Finally, Bellwether Investment Group LLC purchased a new stake in shares of General Dynamics Corp. during the second quarter valued at about $136,000. 87.68% of the stock is owned by institutional investors and hedge funds.
About General Dynamics Corp.
General Dynamics Corporation is an aerospace and defense company that offers a portfolio of products and services in business aviation; combat vehicles, weapons systems and munitions; command, control, communications, computers, intelligence, surveillance and reconnaissance (C4ISR) solutions and information technology (IT) services, and shipbuilding.
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