Zacks Investment Research downgraded shares of General Dynamics (NYSE:GD) from a hold rating to a sell rating in a report issued on Monday 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. Some competitors may have extensive or specialized business segments, superior to General Dynamics. On the other hand, some customers might develop their own products and directly compete with the company for sales. This has forced the company to keep upgrading its technology, in case it loses out to competitors developing better 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. The company's shares also underperformed its industry in the last one year. 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 analysts also recently issued research reports about the stock. Credit Suisse Group decreased their price target on shares of General Dynamics from $263.00 to $234.00 in a research note on Tuesday, May 22nd. Cowen reissued a buy rating and issued a $253.00 price objective on shares of General Dynamics in a research note on Monday, April 9th. Royal Bank of Canada reissued a buy rating and issued a $263.00 price objective on shares of General Dynamics in a research note on Friday, April 6th. Stifel Nicolaus boosted their price objective on shares of General Dynamics from $220.00 to $230.00 and gave the stock a hold rating in a research note on Thursday, April 26th. Finally, ValuEngine downgraded shares of General Dynamics from a buy rating to a hold rating in a research note on Wednesday, May 2nd. Four analysts have rated the stock with a sell rating, four have given a hold rating and eleven have assigned a buy rating to the company’s stock. General Dynamics presently has an average rating of Hold and an average target price of $240.53.
General Dynamics opened at $187.37 on Monday, MarketBeat.com reports. The company has a quick ratio of 0.98, a current ratio of 1.34 and a debt-to-equity ratio of 0.34. General Dynamics has a fifty-two week low of $184.21 and a fifty-two week high of $230.00. The company has a market cap of $55.37 billion, a PE ratio of 18.42, a P/E/G ratio of 1.75 and a beta of 0.85.
General Dynamics (NYSE:GD) last posted its quarterly earnings results on Wednesday, April 25th. The aerospace company reported $2.65 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $2.49 by $0.16. General Dynamics had a net margin of 9.49% and a return on equity of 26.83%. The firm had revenue of $7.50 billion during the quarter, compared to the consensus estimate of $7.56 billion. During the same quarter in the previous year, the firm posted $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 company also recently declared a quarterly dividend, which will be paid on Friday, August 10th. Shareholders of record on Friday, July 6th will be issued a $0.93 dividend. This represents a $3.72 annualized dividend and a yield of 1.99%. The ex-dividend date of this dividend is Thursday, July 5th. General Dynamics’s dividend payout ratio is currently 37.39%.
A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. BlackRock Inc. grew its holdings in General Dynamics by 1.0% in the first quarter. BlackRock Inc. now owns 16,832,989 shares of the aerospace company’s stock worth $3,718,408,000 after purchasing an additional 162,775 shares during the last quarter. Caisse DE Depot ET Placement DU Quebec grew its holdings in General Dynamics by 2.4% in the first quarter. Caisse DE Depot ET Placement DU Quebec now owns 1,738,971 shares of the aerospace company’s stock worth $384,139,000 after purchasing an additional 41,074 shares during the last quarter. Aristotle Capital Management LLC grew its holdings in General Dynamics by 3.8% in the first quarter. Aristotle Capital Management LLC now owns 1,577,319 shares of the aerospace company’s stock worth $348,430,000 after purchasing an additional 57,762 shares during the last quarter. Schwab Charles Investment Management Inc. grew its holdings in General Dynamics by 2.5% in the first quarter. Schwab Charles Investment Management Inc. now owns 1,013,051 shares of the aerospace company’s stock worth $223,783,000 after purchasing an additional 24,469 shares during the last quarter. Finally, Millennium Management LLC grew its holdings in General Dynamics by 234.2% in the first quarter. Millennium Management LLC now owns 931,892 shares of the aerospace company’s stock worth $205,855,000 after purchasing an additional 653,083 shares during the last quarter. 86.00% of the stock is currently owned by institutional investors and hedge funds.
General Dynamics Company Profile
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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