SEB Asset Management AB Makes New Investment in General Dynamics Corporation $GD

Key Points

• SEB Asset Management AB opened a new position in General Dynamics during the first quarter, buying 19,625 shares valued at about $6.7 million.
• General Dynamics reported strong quarterly results, with EPS of $4.10 beating estimates and revenue of $13.48 billion topping expectations; revenue rose 10.3% year over year.
• The company also announced a quarterly dividend of $1.59 per share, while analysts remain broadly positive with a consensus rating of Moderate Buy and an average target price of $391.15.

SEB Asset Management AB acquired a new stake in shares of General Dynamics Corporation (NYSE:GD - Free Report) during the first quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund acquired 19,625 shares of the aerospace company's stock, valued at approximately $6,736,000.

Several other hedge funds and other institutional investors have also recently bought and sold shares of the company. Whipplewood Advisors LLC lifted its holdings in shares of General Dynamics by 1,725.0% during the 1st quarter. Whipplewood Advisors LLC now owns 73 shares of the aerospace company's stock worth $25,000 after acquiring an additional 69 shares during the period. Steph & Co. boosted its position in shares of General Dynamics by 65.2% during the 4th quarter. Steph & Co. now owns 76 shares of the aerospace company's stock valued at $26,000 after acquiring an additional 30 shares in the last quarter. Center for Financial Planning Inc. increased its stake in General Dynamics by 220.7% in the fourth quarter. Center for Financial Planning Inc. now owns 93 shares of the aerospace company's stock valued at $31,000 after acquiring an additional 64 shares during the period. Motiv8 Investments LLC acquired a new position in General Dynamics in the fourth quarter worth about $31,000. Finally, Main Street Group LTD acquired a new position in General Dynamics in the first quarter worth about $32,000. 86.14% of the stock is owned by institutional investors.

Insider Transactions at General Dynamics

In related news, EVP Mark Lagrand Burns sold 36,480 shares of the business's stock in a transaction that occurred on 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 completion of the sale, the executive vice president directly owned 38,975 shares of the company's stock, valued at $13,457,677.75. The trade was a 48.35% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, Director Mark Malcolm sold 5,480 shares of the stock in a transaction that occurred on Wednesday, June 17th. The shares were sold at an average price of $365.00, for a total transaction of $2,000,200.00. Following the completion of the transaction, the director owned 10,643 shares in the company, valued at $3,884,695. This represents a 33.99% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 78,190 shares of company stock worth $27,041,022. Corporate insiders own 1.40% of the company's stock.

General Dynamics Stock Down 0.9%

NYSE GD opened at $367.40 on Wednesday. The stock has a market capitalization of $99.36 billion, a P/E ratio of 23.12, a price-to-earnings-growth ratio of 2.23 and a beta of 0.34. General Dynamics Corporation has a 52 week low of $293.95 and a 52 week high of $380.71. 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 stock has a fifty day moving average of $353.69 and a 200-day moving average of $351.00.

General Dynamics (NYSE:GD - Get Free Report) last issued its quarterly earnings results 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. The business had revenue of $13.48 billion for the quarter, compared to analyst estimates of $12.70 billion. General Dynamics had a return on equity of 17.41% and a net margin of 8.07%.The firm's revenue for the quarter was up 10.3% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $3.66 earnings per share. On average, equities research analysts forecast that General Dynamics Corporation will post 16.64 EPS for the current year.

General Dynamics Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, August 7th. Shareholders of record on Thursday, July 2nd will be given a dividend of $1.59 per share. The ex-dividend date is Thursday, July 2nd. This represents a $6.36 dividend on an annualized basis and a yield of 1.7%. General Dynamics's dividend payout ratio is presently 40.03%.

Wall Street Analysts Forecast Growth

A number of equities research analysts have weighed in on GD shares. Wells Fargo & Company assumed coverage on General Dynamics in a report on Wednesday, April 1st. They set an "overweight" rating and a $400.00 price objective on the stock. Bank of America increased their target price on General Dynamics from $400.00 to $415.00 and gave the stock a "buy" rating in a report on Monday, July 6th. UBS Group raised General Dynamics from a "neutral" rating to a "buy" rating in a research note on Thursday, June 11th. DA Davidson lowered their price target on General Dynamics from $384.00 to $375.00 in a research report on Thursday, April 30th. Finally, Wall Street Zen upgraded General Dynamics from a "buy" rating to a "strong-buy" rating in a research note on Saturday, June 13th. Two analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $391.15.

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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