Rayburn West Financial Services LLC Acquires New Shares in General Dynamics Corporation $GD

Key Points

• Rayburn West Financial Services opened a new position in General Dynamics in the fourth quarter, buying 7,090 shares worth about $2.39 million. The stake represents roughly 1.5% of its portfolio and its 26th-largest holding.
• Institutional ownership remains high, with 86.14% of General Dynamics stock held by hedge funds and other institutions. Several other funds also slightly increased their positions during the period.
• General Dynamics posted strong quarterly results and raised its dividend, reporting EPS of $4.10 on revenue of $13.48 billion, both above estimates, while revenue rose 10.3% year over year. The company also increased its quarterly dividend to $1.59 per share, or $6.36 annually.

Rayburn West Financial Services LLC acquired a new position in General Dynamics Corporation (NYSE:GD - Free Report) in the fourth quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor acquired 7,090 shares of the aerospace company's stock, valued at approximately $2,387,000. General Dynamics accounts for about 1.5% of Rayburn West Financial Services LLC's portfolio, making the stock its 26th biggest holding.

A number of other hedge funds also recently added to or reduced their stakes in the business. Joule Financial LLC lifted its stake in General Dynamics by 4.3% in the fourth quarter. Joule Financial LLC now owns 705 shares of the aerospace company's stock worth $237,000 after acquiring an additional 29 shares during the period. Brown Miller Wealth Management LLC lifted its stake in General Dynamics by 0.3% in the fourth quarter. Brown Miller Wealth Management LLC now owns 8,889 shares of the aerospace company's stock worth $2,993,000 after acquiring an additional 29 shares during the period. First Financial Bankshares Inc lifted its stake in General Dynamics by 2.6% in the third quarter. First Financial Bankshares Inc now owns 1,196 shares of the aerospace company's stock worth $408,000 after acquiring an additional 30 shares during the period. 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. Finally, Revolve Wealth Partners LLC lifted its stake in General Dynamics by 3.3% in the fourth quarter. Revolve Wealth Partners LLC now owns 978 shares of the aerospace company's stock worth $329,000 after acquiring an additional 31 shares during the period. 86.14% of the stock is owned by hedge funds and other institutional investors.

More General Dynamics News

Here are the key news stories impacting General Dynamics this week:

• Positive Sentiment: General Dynamics Information Technology (GDIT) announced a new partnership with NightDragon to accelerate U.S. government adoption of emerging AI and cybersecurity technologies, which could support future federal contract growth and reinforce the company’s positioning in secure-tech markets. Article Title
• Neutral Sentiment: Two separate filings showed EVP Mark Lagrand Burns sold a combined 72,710 shares on May 11 and May 12 at prices around $343 to $345 per share. Insider selling can weigh on sentiment, but the trades do not necessarily indicate a change in the company’s fundamentals. Article Title
• Negative Sentiment: Market commentary around the GDIT-NightDragon deal noted that General Dynamics shares fell after the announcement, suggesting investors may be treating the news as incremental rather than a near-term catalyst. Article Title

Analyst Ratings Changes

A number of analysts recently weighed in on GD shares. Citigroup lowered their price objective on shares of General Dynamics from $389.00 to $380.00 and set a "neutral" rating for the company in a research note on Wednesday, April 1st. Jefferies Financial Group reduced their target price on shares of General Dynamics from $385.00 to $380.00 and set a "hold" rating for the company in a report on Tuesday, April 7th. Argus boosted their target price on shares of General Dynamics from $380.00 to $395.00 and gave the stock a "buy" rating in a report on Thursday, February 19th. Morgan Stanley boosted their target price on shares of General Dynamics from $410.00 to $435.00 and gave the stock an "overweight" rating in a report on Thursday, April 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 analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of $388.20.

Insider Activity at General Dynamics

In other news, 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 $13,457,677.75. This represents a 48.35% 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, 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 approximately $271,394,759.13. This trade represents a 4.12% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders have sold 123,970 shares of company stock worth $43,174,793. 1.40% of the stock is owned by insiders.

General Dynamics Stock Performance

Shares of General Dynamics stock opened at $341.31 on Thursday. General Dynamics Corporation has a one year low of $267.39 and a one year high of $369.70. 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 market capitalization of $92.30 billion, a PE ratio of 21.48, a P/E/G ratio of 2.15 and a beta of 0.34. The company has a 50-day simple moving average of $344.70 and a two-hundred day simple moving average of $346.83.

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%.

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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