Primecap Management Co. CA Sells 76,910 Shares of General Dynamics Corporation (NYSE:GD)

Key Points

• Primecap Management Co. CA has reduced its holdings in General Dynamics by 11.3%, now owning about 602,840 shares worth approximately $164.32 million.
• General Dynamics reported an earnings per share (EPS) of $3.74 for the latest quarter, surpassing analysts' estimates and reflecting an 8.9% revenue increase year-over-year.
• The company has announced a quarterly dividend of $1.50 per share, which translates to an annual yield of 1.9% and a dividend payout ratio of 40.27%.

Primecap Management Co. CA decreased its stake in General Dynamics Corporation (NYSE:GD - Free Report) by 11.3% during the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 602,840 shares of the aerospace company's stock after selling 76,910 shares during the quarter. Primecap Management Co. CA owned approximately 0.22% of General Dynamics worth $164,322,000 at the end of the most recent quarter.

Several other institutional investors have also bought and sold shares of the stock. Brighton Jones LLC boosted its stake in General Dynamics by 16.9% in the fourth quarter. Brighton Jones LLC now owns 2,885 shares of the aerospace company's stock worth $760,000 after purchasing an additional 417 shares in the last quarter. Grantham Mayo Van Otterloo & Co. LLC boosted its stake in General Dynamics by 24.2% in the fourth quarter. Grantham Mayo Van Otterloo & Co. LLC now owns 4,360 shares of the aerospace company's stock worth $1,149,000 after purchasing an additional 849 shares in the last quarter. Aster Capital Management DIFC Ltd acquired a new position in General Dynamics in the fourth quarter worth $60,000. Federated Hermes Inc. boosted its stake in General Dynamics by 16.4% in the fourth quarter. Federated Hermes Inc. now owns 1,476 shares of the aerospace company's stock worth $389,000 after purchasing an additional 208 shares in the last quarter. Finally, Rathbones Group PLC boosted its stake in General Dynamics by 8.2% in the fourth quarter. Rathbones Group PLC now owns 2,079 shares of the aerospace company's stock worth $548,000 after purchasing an additional 157 shares in the last quarter. Institutional investors and hedge funds own 86.14% of the company's stock.

Insider Activity at General Dynamics

In related news, CEO Phebe N. Novakovic sold 178,821 shares of the stock in a transaction that occurred on Friday, June 13th. The stock was sold at an average price of $283.13, for a total transaction of $50,629,589.73. Following the completion of the transaction, the chief executive officer directly owned 769,607 shares of the company's stock, valued at approximately $217,898,829.91. This represents a 18.85% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Leon Rudy F. De sold 5,490 shares of the stock in a transaction that occurred on Monday, July 28th. The shares were sold at an average price of $312.81, for a total value of $1,717,326.90. Following the transaction, the director directly owned 5,483 shares of the company's stock, valued at $1,715,137.23. This trade represents a 50.03% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 268,370 shares of company stock valued at $78,408,011. Insiders own 1.50% of the company's stock.

Analysts Set New Price Targets

A number of research firms have recently weighed in on GD. Cowen restated a "buy" rating on shares of General Dynamics in a research report on Wednesday, June 25th. Sanford C. Bernstein set a $314.00 target price on General Dynamics and gave the stock a "market perform" rating in a research report on Monday, July 14th. UBS Group boosted their target price on General Dynamics from $309.00 to $333.00 and gave the stock a "neutral" rating in a research report on Thursday, July 24th. Citigroup boosted their target price on General Dynamics from $348.00 to $368.00 and gave the stock a "buy" rating in a research report on Thursday, July 24th. Finally, Morgan Stanley dropped their target price on General Dynamics from $305.00 to $300.00 and set an "equal weight" rating for the company in a research report on Thursday, April 24th. One investment analyst has rated the stock with a sell rating, twelve have assigned a hold rating and nine have issued a buy rating to the stock. According to MarketBeat.com, the company presently has an average rating of "Hold" and an average price target of $315.78.

General Dynamics Stock Up 0.4%

Shares of GD stock traded up $1.25 on Friday, hitting $313.98. 1,157,284 shares of the stock were exchanged, compared to its average volume of 1,263,103. The company has a current ratio of 1.36, a quick ratio of 0.83 and a debt-to-equity ratio of 0.32. The firm has a market capitalization of $84.46 billion, a P/E ratio of 21.07, a price-to-earnings-growth ratio of 1.93 and a beta of 0.48. The business has a 50-day moving average of $294.78 and a 200 day moving average of $275.50. General Dynamics Corporation has a fifty-two week low of $239.20 and a fifty-two week high of $322.50.

General Dynamics (NYSE:GD - Get Free Report) last posted its quarterly earnings data on Wednesday, July 23rd. The aerospace company reported $3.74 earnings per share for the quarter, topping the consensus estimate of $3.47 by $0.27. General Dynamics had a return on equity of 17.99% and a net margin of 8.13%. The company had revenue of $13.04 billion during the quarter, compared to analysts' expectations of $12.13 billion. During the same period in the prior year, the firm earned $3.26 earnings per share. General Dynamics's revenue for the quarter was up 8.9% compared to the same quarter last year. Equities analysts anticipate that General Dynamics Corporation will post 14.83 EPS for the current year.

General Dynamics Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, November 14th. Investors of record on Friday, October 10th will be given a dividend of $1.50 per share. The ex-dividend date of this dividend is Friday, October 10th. This represents a $6.00 annualized dividend and a yield of 1.9%. General Dynamics's dividend payout ratio is 40.27%.

General Dynamics Profile

General Dynamics Corporation operates as an aerospace and defense company worldwide. It operates through four segments: Aerospace, Marine Systems, Combat Systems, and Technologies. The Aerospace segment produces and sells business jets; and offers aircraft maintenance and repair, management, aircraft-on-ground support and completion, charter, staffing, and fixed-base operator services.