General Dynamics Corporation $GD is Newport Trust Company LLC's 2nd Largest Position

Key Points

• Newport Trust Company trimmed its General Dynamics stake by 1.7% in the fourth quarter, but GD still represents about 11.1% of its portfolio and remains its second-largest holding.
• General Dynamics beat earnings expectations in its latest quarter, reporting EPS of $4.10 versus $3.67 expected, on revenue of $13.48 billion, up 10.3% year over year.
• The company also raised its quarterly dividend to $1.59 per share from $1.50, while analysts currently view the stock as a “Moderate Buy” with an average price target of $387.40.

Newport Trust Company LLC cut its holdings in General Dynamics Corporation (NYSE:GD - Free Report) by 1.7% in the fourth quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 13,725,738 shares of the aerospace company's stock after selling 233,289 shares during the quarter. General Dynamics makes up about 11.1% of Newport Trust Company LLC's investment portfolio, making the stock its 2nd largest position. Newport Trust Company LLC owned approximately 5.08% of General Dynamics worth $4,620,907,000 at the end of the most recent quarter.

Other hedge funds also recently added to or reduced their stakes in the company. Dunhill Financial LLC lifted its stake in General Dynamics by 620.0% in the third quarter. Dunhill Financial LLC now owns 72 shares of the aerospace company's stock worth $25,000 after acquiring an additional 62 shares during the period. KERR FINANCIAL PLANNING Corp purchased a new stake in General Dynamics in the third quarter worth about $25,000. Dagco Inc. purchased a new stake in General Dynamics in the fourth quarter worth about $25,000. Burkett Financial Services LLC lifted its stake in General Dynamics by 650.0% in the third quarter. Burkett Financial Services LLC now owns 75 shares of the aerospace company's stock worth $26,000 after acquiring an additional 65 shares during the period. Finally, Steph & Co. lifted its stake in General Dynamics by 65.2% in the fourth quarter. Steph & Co. now owns 76 shares of the aerospace company's stock worth $26,000 after acquiring an additional 30 shares during the period. 86.14% of the stock is owned by hedge funds and other institutional investors.

Insider Activity

In other news, CEO Phebe N. Novakovic sold 32,918 shares of the company's stock in a transaction dated Wednesday, March 11th. The shares were sold at an average price of $354.09, for a total transaction of $11,655,934.62. Following the transaction, the chief executive officer owned 766,457 shares in the company, valued at $271,394,759.13. This represents a 4.12% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, EVP Mark Lagrand Burns sold 36,480 shares of the company's stock in a transaction dated Tuesday, May 12th. The shares were sold at an average price of $345.29, for a total transaction of $12,596,179.20. Following the transaction, the executive vice president owned 38,975 shares in the company, valued at approximately $13,457,677.75. This trade represents a 48.35% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 119,600 shares of company stock worth $41,650,580 over the last 90 days. 1.40% of the stock is currently owned by corporate insiders.

General Dynamics Stock Performance

Shares of General Dynamics stock opened at $338.85 on Friday. The company has a market capitalization of $91.64 billion, a PE ratio of 21.32, a P/E/G ratio of 2.11 and a beta of 0.34. The company has a debt-to-equity ratio of 0.24, a quick ratio of 0.90 and a current ratio of 1.38. The company has a 50-day simple moving average of $341.96 and a two-hundred day simple moving average of $346.50. General Dynamics Corporation has a one year low of $268.10 and a one year high of $369.70.

General Dynamics (NYSE:GD - Get Free Report) last posted its quarterly earnings data on Wednesday, April 29th. The aerospace company reported $4.10 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.67 by $0.43. General Dynamics had a net margin of 8.07% and a return on equity of 17.41%. The firm had revenue of $13.48 billion for the quarter, compared to the consensus estimate of $12.70 billion. During the same quarter in the prior year, the company posted $3.66 earnings per share. The company's revenue for the quarter was up 10.3% compared to the same quarter last year. Research analysts expect that General Dynamics Corporation will post 16.62 EPS for the current fiscal year.

General Dynamics Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, May 8th. Stockholders of record on Friday, April 10th were issued a dividend of $1.59 per share. This represents a $6.36 annualized dividend and a dividend yield of 1.9%. This is an increase from General Dynamics's previous quarterly dividend of $1.50. The ex-dividend date was Friday, April 10th. General Dynamics's dividend payout ratio is currently 40.03%.

Analyst Ratings Changes

GD has been the subject of a number of research reports. Royal Bank Of Canada reaffirmed a "sector perform" rating and issued a $385.00 price objective on shares of General Dynamics in a research note on Thursday, April 30th. UBS Group reduced their target price on shares of General Dynamics from $385.00 to $371.00 and set a "neutral" rating for the company in a report on Thursday, April 30th. The Goldman Sachs Group reduced their target price on shares of General Dynamics from $327.00 to $313.00 and set a "sell" rating for the company in a report on Monday, May 4th. Bank of America reiterated a "buy" rating and issued a $400.00 target price on shares of General Dynamics in a report on Friday, January 30th. Finally, Deutsche Bank Aktiengesellschaft reduced their target price on shares of General Dynamics from $387.00 to $377.00 and set a "hold" rating for the company in a report on Wednesday, May 6th. Two investment analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating, seven have issued a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, General Dynamics presently has an average rating of "Moderate Buy" and an average price target of $387.40.

General Dynamics Company Profile

General Dynamics is a major American aerospace and defense contractor that designs, manufactures and supports a broad range of products and services for government and commercial customers worldwide. Headquartered in the United States (Reston, Virginia), the company supplies platforms and systems used by armed forces, civil authorities and private operators across multiple domains including air, land, sea and cyber.

Its principal activities span several operating businesses: a business aviation unit that develops and supports Gulfstream business jets; land systems that produce armored combat vehicles and related logistics and sustainment services; marine systems that design and construct submarines and surface ships for navies; and mission systems and information technology operations that provide command-and-control, communications, cybersecurity and systems-integration services.

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