Zacks Investment Research downgraded shares of General Dynamics (NYSE:GD) from a hold rating to a sell rating in a research report report published on Tuesday morning.
According to Zacks, “General Dynamics operates in a highly competitive market and has to rely on other companies to provide materials, components and subsystems for its products. General Dynamics’ fortunes are tied to the cyclical aerospace market, which is currently in a recovery phase. Moreover, the company may be challenged by economic and political changes. 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. It’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. The company's shares also underperformed its industry in the last one year. However, the company remains one of the only two contractors in the world equipped to build nuclear-powered submarines and its diverse portfolio of products and services.”
Other research analysts have also recently issued research reports about the company. Credit Suisse Group decreased their price target on General Dynamics from $263.00 to $234.00 in a research report on Tuesday, May 22nd. Cowen restated a buy rating and issued a $253.00 price target on shares of General Dynamics in a research report on Monday, April 9th. Royal Bank of Canada restated a buy rating and issued a $263.00 price target on shares of General Dynamics in a research report on Friday, April 6th. ValuEngine upgraded General Dynamics from a hold rating to a buy rating in a research report on Thursday, March 1st. Finally, Stifel Nicolaus raised their price target on General Dynamics from $220.00 to $230.00 and gave the stock a hold rating in a research report on Thursday, April 26th. Four equities research analysts have rated the stock with a sell rating, four have issued a hold rating and eleven have given a buy rating to the company’s stock. The company has a consensus rating of Hold and an average target price of $240.53.
GD opened at $188.80 on Tuesday. General Dynamics has a fifty-two week low of $187.05 and a fifty-two week high of $230.00. The company has a debt-to-equity ratio of 0.34, a current ratio of 1.34 and a quick ratio of 0.98. The firm has a market cap of $56.17 billion, a PE ratio of 18.97, a PEG ratio of 1.78 and a beta of 0.83.
General Dynamics (NYSE:GD) last posted its earnings results on Wednesday, April 25th. The aerospace company reported $2.65 earnings per share for the quarter, topping the Zacks’ consensus estimate of $2.49 by $0.16. General Dynamics had a return on equity of 26.83% and a net margin of 9.49%. The company had revenue of $7.50 billion during the quarter, compared to the consensus estimate of $7.56 billion. During the same quarter last year, the firm earned $2.48 earnings per share. The company’s revenue was up .8% on a year-over-year basis. sell-side analysts predict that General Dynamics will post 11.02 EPS for the current year.
The firm also recently announced a quarterly dividend, which will be paid on Friday, August 10th. Shareholders of record on Friday, July 6th will be given a $0.93 dividend. This represents a $3.72 dividend on an annualized basis and a yield of 1.97%. The ex-dividend date of this dividend is Thursday, July 5th. General Dynamics’s dividend payout ratio is presently 37.39%.
Institutional investors have recently added to or reduced their stakes in the business. Dubuque Bank & Trust Co. grew its position in General Dynamics by 230.7% in the first quarter. Dubuque Bank & Trust Co. now owns 496 shares of the aerospace company’s stock valued at $109,000 after acquiring an additional 346 shares during the last quarter. Highlander Capital Management LLC grew its position in General Dynamics by 101.4% in the fourth quarter. Highlander Capital Management LLC now owns 596 shares of the aerospace company’s stock valued at $121,000 after acquiring an additional 300 shares during the last quarter. Optimum Investment Advisors acquired a new stake in shares of General Dynamics during the first quarter valued at about $134,000. We Are One Seven LLC acquired a new stake in shares of General Dynamics during the fourth quarter valued at about $128,000. Finally, Moneta Group Investment Advisors LLC boosted its stake in shares of General Dynamics by 1,143.4% during the first quarter. Moneta Group Investment Advisors LLC now owns 659 shares of the aerospace company’s stock valued at $146,000 after purchasing an additional 606 shares in the last quarter. Hedge funds and other institutional investors own 86.00% of the company’s stock.
About General Dynamics
General Dynamics Corporation operates as an aerospace and defense company worldwide. It operates through four business groups: Aerospace; Combat Systems; Information Systems and Technology; and Marine Systems. The Aerospace group designs, develops, manufactures, service and supports business-jet aircraft; and provides aircraft services, such as maintenance, aircraft management, charter, fixed-base operational, and staffing services.
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