General Dynamics (NYSE:GD) Earns Sector Perform Rating from Royal Bank Of Canada

Key Points

• Royal Bank of Canada reiterated a "sector perform" rating on General Dynamics with a $385 price target (≈12.4% upside), while analyst consensus remains a Moderate Buy with an average target of $389.68.
• Q1 beat: General Dynamics reported EPS of $4.10 (vs. $3.67 est.) and revenue of $13.48B (vs. $12.64B), citing ~2:1 book‑to‑bill and strong marine/shipbuilding backlog that supported an upgraded outlook.
• Insider selling and valuation: Executives sold meaningful stakes (51,260 shares in the past 90 days), while the stock trades near $342.60 with a P/E of ~22.1 and a market cap of ~$92.8B, presenting mixed signals for investors.

General Dynamics (NYSE:GD - Get Free Report)'s stock had its "sector perform" rating restated by investment analysts at Royal Bank Of Canada in a research note issued on Thursday,Benzinga reports. They presently have a $385.00 price target on the aerospace company's stock. Royal Bank Of Canada's price objective would indicate a potential upside of 12.38% from the company's previous close.

A number of other equities analysts have also weighed in on the stock. Wall Street Zen lowered shares of General Dynamics from a "buy" rating to a "hold" rating in a research report on Saturday, January 31st. Wells Fargo & Company began coverage on shares of General Dynamics in a report on Wednesday, April 1st. They set an "overweight" rating and a $400.00 price target for the company. TD Cowen lifted their price objective on General Dynamics from $370.00 to $390.00 and gave the company a "buy" rating in a report on Wednesday, January 14th. BNP Paribas Exane increased their target price on General Dynamics from $410.00 to $430.00 and gave the stock an "outperform" rating in a research note on Tuesday, April 7th. Finally, Bank of America restated a "buy" rating and issued a $400.00 price target on shares of General Dynamics in a research note on Friday, January 30th. Two equities research 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 given a Sell rating to the company's stock. According to data from MarketBeat.com, General Dynamics presently has a consensus rating of "Moderate Buy" and an average target price of $389.68.

General Dynamics Stock Performance

Shares of NYSE:GD traded up $3.87 on Thursday, reaching $342.60. The company's stock had a trading volume of 654,442 shares, compared to its average volume of 1,429,414. The company has a debt-to-equity ratio of 0.27, a current ratio of 1.44 and a quick ratio of 0.89. General Dynamics has a 52-week low of $266.98 and a 52-week high of $369.70. The stock's 50-day moving average is $345.77 and its two-hundred day moving average is $346.19. The stock has a market capitalization of $92.79 billion, a P/E ratio of 22.14, a PEG ratio of 2.09 and a beta of 0.38.

General Dynamics (NYSE:GD - Get Free Report) last posted its quarterly earnings data on Wednesday, April 29th. The aerospace company reported $4.10 EPS for the quarter, beating the consensus estimate of $3.67 by $0.43. General Dynamics had a return on equity of 17.57% and a net margin of 8.01%.The firm had revenue of $13.48 billion during the quarter, compared to the consensus estimate of $12.64 billion. During the same period in the prior year, the business earned $3.66 EPS. The firm's revenue was up 10.3% compared to the same quarter last year. As a group, sell-side analysts forecast that General Dynamics will post 16.3 EPS for the current year.

Insider Activity

In other news, VP Mark Rayha sold 4,370 shares of the business's stock in a transaction that occurred on Friday, February 13th. The shares were sold at an average price of $348.79, for a total value of $1,524,212.30. Following the completion of the transaction, the vice president owned 7,936 shares of the company's stock, valued at $2,767,997.44. The trade was a 35.51% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, EVP Mark Lagrand Burns sold 10,153 shares of the firm's stock in a transaction that occurred on Wednesday, March 11th. The stock was sold at an average price of $354.95, for a total transaction of $3,603,807.35. Following the sale, the executive vice president owned 38,975 shares in the company, valued at approximately $13,834,176.25. This trade represents a 20.67% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 51,260 shares of company stock valued at $18,133,971. 1.40% of the stock is owned by corporate insiders.

Institutional Trading of General Dynamics

A number of hedge funds have recently added to or reduced their stakes in the business. Dunhill Financial LLC boosted its position in shares of 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 last quarter. KERR FINANCIAL PLANNING Corp purchased a new position in General Dynamics during the third quarter worth approximately $25,000. Dagco Inc. acquired a new position in shares of General Dynamics in the 4th quarter valued at $25,000. Burkett Financial Services LLC grew its stake in shares of General Dynamics by 650.0% during the 3rd quarter. Burkett Financial Services LLC now owns 75 shares of the aerospace company's stock valued at $26,000 after buying an additional 65 shares during the period. Finally, Steph & Co. increased its holdings in shares of General Dynamics by 65.2% during the 4th quarter. Steph & Co. now owns 76 shares of the aerospace company's stock worth $26,000 after buying an additional 30 shares during the last quarter. 86.14% of the stock is owned by institutional investors and hedge funds.

More General Dynamics News

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

• Positive Sentiment: Q1 beat-and-raise — GD reported Q1 revenue of ~$13.5B and EPS ~$4.10, topping estimates and raising full‑year EPS guidance; management highlighted broad segment growth and strong cash flow, which is the primary driver of the rally. General Dynamics Reports First-Quarter 2026 Financial Results
• Positive Sentiment: Orders and backlog momentum — company reported a roughly 2:1 book-to-bill and strong order intake in marine and combat segments, signaling revenue visibility beyond the quarter. This underpins investor confidence in sustained growth. GD Q1 Earnings Beat Estimates on Strong Orders and Cash Flow
• Positive Sentiment: Analyst upgrade and higher price target — Morgan Stanley raised its price target to $435 and kept an Overweight rating, increasing potential upside in broker-model valuations and likely supporting further buy-side interest. Morgan Stanley Raises Price Target on General Dynamics to $435
• Positive Sentiment: Shipbuilding strength — Marine Systems led the quarter, including progress that keeps the Columbia‑class submarine on track, supporting multi‑year defense revenue streams and backlog. First Columbia-class Sub Tracking to 2028 Delivery, General Dynamics Says
• Neutral Sentiment: Market commentary and valuation checks suggest the beat has shifted sentiment; longer‑term metrics (PE ~22, solid shareholder returns) are being re‑priced but require watching against defense-cycle risks. General Dynamics (GD) Valuation Check After Strong Q1 Beat And Upgraded Earnings Outlook
• Neutral Sentiment: Media notes GD among dependable dividend names; that can support defensive demand but is not an immediate stock mover relative to the earnings shock. 3 Dividend Aristocrats I'd Rather Own Than the S&P 500 Right Now
• Negative Sentiment: Operational uncertainty remains on a specific Army stop‑work order tied to an artillery‑shell plant; investors should monitor contract and program execution risks that could offset some upside. General Dynamics Gets Unexpected War Department Win Ahead of Earnings

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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