Zacks Investment Research Upgrades General Dynamics (GD) to “Buy”

General Dynamics (NYSE:GD) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research report issued on Friday. The firm presently has a $234.00 price target on the aerospace company’s stock. Zacks Investment Research‘s price objective indicates a potential upside of 11.91% from the company’s previous close.

According to Zacks, “General Dynamics is one of the only two contractors in the world equipped to build nuclear-powered submarines and its diverse portfolio of products and services along with its wide customer base provides it with an opportunity to generate solid revenues from different sources. The recent budgetary amendments in the country have been in favor of the company’s business line and the company continues to secure sizeable orders at regular intervals. However, General Dynamics operates in a highly competitive market and has to rely on other companies to provide materials, components and subsystems for its products. Moreover, the company underperformed the broader industry in last six months. Further, the company’s dependence on international sales for a major portion of its revenues exposes it to the risk of currency fluctuations.”

Several other analysts have also recently weighed in on GD. Deutsche Bank reaffirmed a “hold” rating and set a $210.00 price objective (up previously from $200.00) on shares of General Dynamics in a research report on Monday, October 2nd. ValuEngine cut shares of General Dynamics from a “buy” rating to a “hold” rating in a research report on Tuesday, October 3rd. Citigroup reissued a “neutral” rating and issued a $215.00 price target (up previously from $210.00) on shares of General Dynamics in a research report on Monday, October 9th. Cowen reissued a “buy” rating and issued a $230.00 price target on shares of General Dynamics in a research report on Thursday, October 19th. Finally, Stifel Nicolaus raised their price target on shares of General Dynamics from $200.00 to $210.00 and gave the company a “hold” rating in a research report on Thursday, October 26th. Three investment analysts have rated the stock with a sell rating, four have assigned a hold rating and ten have issued a buy rating to the company’s stock. The company currently has a consensus rating of “Hold” and a consensus price target of $218.67.

General Dynamics (NYSE:GD) traded up $1.30 on Friday, hitting $209.10. 1,407,603 shares of the company traded hands, compared to its average volume of 1,037,509. General Dynamics has a 52-week low of $172.43 and a 52-week high of $214.81. The company has a debt-to-equity ratio of 0.34, a quick ratio of 0.93 and a current ratio of 1.37. The firm has a market cap of $62,045.53, a P/E ratio of 20.85, a PEG ratio of 2.23 and a beta of 0.72.

General Dynamics (NYSE:GD) last released its quarterly earnings data on Wednesday, October 25th. The aerospace company reported $2.52 EPS for the quarter, beating the Zacks’ consensus estimate of $2.43 by $0.09. The company had revenue of $7.58 billion during the quarter, compared to the consensus estimate of $7.94 billion. General Dynamics had a net margin of 9.94% and a return on equity of 27.98%. General Dynamics’s quarterly revenue was down 1.0% on a year-over-year basis. During the same quarter in the prior year, the firm earned $2.36 EPS. sell-side analysts expect that General Dynamics will post 9.81 earnings per share for the current year.

In other General Dynamics news, VP Gregory S. Gallopoulos sold 78,370 shares of the firm’s stock in a transaction on Monday, November 6th. The shares were sold at an average price of $202.93, for a total transaction of $15,903,624.10. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. Also, insider John Patrick Casey sold 34,945 shares of the firm’s stock in a transaction on Wednesday, November 1st. The stock was sold at an average price of $201.38, for a total transaction of $7,037,224.10. Following the transaction, the insider now directly owns 144,378 shares in the company, valued at $29,074,841.64. The disclosure for this sale can be found here. 6.70% of the stock is owned by company insiders.

A number of institutional investors have recently modified their holdings of GD. State of Alaska Department of Revenue boosted its holdings in shares of General Dynamics by 413.2% in the fourth quarter. State of Alaska Department of Revenue now owns 28,879 shares of the aerospace company’s stock valued at $5,872,000 after acquiring an additional 23,252 shares in the last quarter. Oakbrook Investments LLC boosted its holdings in shares of General Dynamics by 3.1% in the fourth quarter. Oakbrook Investments LLC now owns 21,165 shares of the aerospace company’s stock valued at $4,306,000 after acquiring an additional 640 shares in the last quarter. Berkshire Asset Management LLC PA boosted its holdings in shares of General Dynamics by 52.2% in the fourth quarter. Berkshire Asset Management LLC PA now owns 8,719 shares of the aerospace company’s stock valued at $1,774,000 after acquiring an additional 2,990 shares in the last quarter. Schwab Charles Investment Management Inc. boosted its holdings in shares of General Dynamics by 3.2% in the fourth quarter. Schwab Charles Investment Management Inc. now owns 988,582 shares of the aerospace company’s stock valued at $201,128,000 after acquiring an additional 30,588 shares in the last quarter. Finally, Benjamin F. Edwards & Company Inc. boosted its holdings in shares of General Dynamics by 9.6% in the fourth quarter. Benjamin F. Edwards & Company Inc. now owns 9,990 shares of the aerospace company’s stock valued at $2,032,000 after acquiring an additional 871 shares in the last quarter. 86.76% of the stock is currently owned by institutional investors.

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General Dynamics Company Profile

General Dynamics Corporation is a global aerospace and defense company. The Company offers a portfolio of products and services in business aviation; combat vehicles, weapons systems and munitions; information technology (IT) services and C4ISR (command, control, communications, computers, intelligence, surveillance and reconnaissance) solutions, and shipbuilding and ship repair.

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