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 research 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.”
Other equities analysts have also recently issued research reports about the stock. Jefferies Group reaffirmed a “buy” rating on shares of General Dynamics Corp. in a research note on Wednesday, August 3rd. Sanford C. Bernstein raised shares of General Dynamics Corp. from a “market perform” rating to an “outperform” rating and set a $180.00 price objective for the company in a research note on Wednesday, August 10th. They noted that the move was a valuation call. Argus boosted their price objective on shares of General Dynamics Corp. from $160.00 to $165.00 and gave the company a “buy” rating in a research note on Tuesday, August 2nd. Deutsche Bank AG reaffirmed a “hold” rating on shares of General Dynamics Corp. in a research note on Friday, September 23rd. Finally, Citigroup Inc. boosted their price objective on shares of General Dynamics Corp. from $162.00 to $185.00 and gave the company a “buy” rating in a research note on Tuesday, September 6th. Three equities research analysts have rated the stock with a hold rating and sixteen have given a buy rating to the stock. General Dynamics Corp. currently has a consensus rating of “Buy” and an average price target of $159.27.
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General Dynamics Corp. (NYSE:GD) opened at 151.34 on Monday. The firm’s 50 day moving average is $152.76 and its 200-day moving average is $144.54. The firm has a market cap of $46.08 billion, a price-to-earnings ratio of 16.09 and a beta of 0.76. General Dynamics Corp. has a 12 month low of $121.61 and a 12 month high of $156.97.
General Dynamics Corp. (NYSE:GD) last released its quarterly earnings results on Wednesday, July 27th. The company reported $2.44 earnings per share for the quarter, beating analysts’ consensus estimates of $2.31 by $0.13. General Dynamics Corp. had a net margin of 9.53% and a return on equity of 27.74%. The company had revenue of $7.66 billion for the quarter, compared to analyst estimates of $7.88 billion. During the same period last year, the firm earned $2.27 earnings per share. The firm’s revenue was down 2.8% on a year-over-year basis. On average, equities analysts forecast that General Dynamics Corp. will post $9.73 EPS for the current year.
The firm 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. This represents a $3.04 annualized dividend and a dividend yield of 2.01%. The ex-dividend date is Wednesday, October 5th. General Dynamics Corp.’s dividend payout ratio (DPR) is presently 32.27%.
In other General Dynamics Corp. news, insider John Patrick Casey sold 57,490 shares of the firm’s stock in a transaction that occurred on Thursday, August 4th. The shares were sold at an average price of $146.96, for a total transaction of $8,448,730.40. Following the sale, the insider now owns 165,118 shares in the company, valued at approximately $24,265,741.28. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, VP Kimberly A. Kuryea sold 4,117 shares of the firm’s stock in a transaction that occurred on Tuesday, September 6th. The stock was sold at an average price of $154.56, for a total transaction of $636,323.52. Following the sale, the vice president now owns 36,412 shares in the company, valued at approximately $5,627,838.72. The disclosure for this sale can be found here. 6.80% of the stock is currently owned by insiders.
A number of large investors have recently added to or reduced their stakes in the company. RS Investment Management Co. LLC purchased a new stake in General Dynamics Corp. during the second quarter worth approximately $23,540,000. Edgar Lomax Co. VA boosted its stake in General Dynamics Corp. by 10.6% in the first quarter. Edgar Lomax Co. VA now owns 269,200 shares of the company’s stock worth $35,365,000 after buying an additional 25,900 shares during the last quarter. AMP Capital Investors Ltd boosted its stake in General Dynamics Corp. by 2.2% in the first quarter. AMP Capital Investors Ltd now owns 192,930 shares of the company’s stock worth $25,415,000 after buying an additional 4,170 shares during the last quarter. Nisa Investment Advisors LLC boosted its stake in General Dynamics Corp. by 2.8% in the second quarter. Nisa Investment Advisors LLC now owns 120,102 shares of the company’s stock worth $16,723,000 after buying an additional 3,230 shares during the last quarter. Finally, Schmidt P J Investment Management Inc. boosted its stake in General Dynamics Corp. by 2.9% in the second quarter. Schmidt P J Investment Management Inc. now owns 8,138 shares of the company’s stock worth $1,133,000 after buying an additional 233 shares during the last quarter. Institutional investors own 87.68% of the company’s stock.
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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