General Dynamics (NYSE:GD) Hits New 12-Month High - Time to Buy?

Key Points

• General Dynamics hit a new 52-week high, trading as high as $387.32 and closing near $386.87, up 3.8% on the day. The stock’s recent strength has been fueled by renewed investor interest in defense names.
• Fundamentals and earnings remain solid: the company recently beat quarterly EPS and revenue estimates, and analysts are generally constructive with a consensus rating of “Moderate Buy” and an average price target of $391.15. Demand for submarines and broader defense spending are cited as key tailwinds.
• General Dynamics also announced a $1.59 quarterly dividend, which implies an annualized payout of $6.36 and a 1.6% yield. Meanwhile, several insiders sold shares recently, though institutional ownership remains high at 86.14%.

General Dynamics Corporation (NYSE:GD - Get Free Report)'s stock price reached a new 52-week high on Thursday . The company traded as high as $387.32 and last traded at $386.8720, with a volume of 115553 shares changing hands. The stock had previously closed at $373.16.

Key Stories Impacting General Dynamics

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

• Positive Sentiment: Analysts are becoming more optimistic ahead of General Dynamics’ upcoming earnings release, with expectations helped by strong submarine contract wins and broader earnings momentum. How Investors Are Reacting To General Dynamics (GD) Legal Succession And Submarine-Driven Earnings Optimism
• Positive Sentiment: General Dynamics continues to benefit from robust defense demand, which is supporting investor confidence in the company’s long-term revenue pipeline. General Dynamics NYSE: GD Gains Strength From Defense Demand
• Positive Sentiment: Shares have been trending upward over the past month and quarter, and one analysis suggested the stock may still be trading below fair value after the recent run. General Dynamics (GD) Could Be 7% Below Fair Value On Executive Transition
• Positive Sentiment: General Dynamics also benefited from broader defense-sector enthusiasm, as investors look for exposure to military spending and European rearmament trends. Europe Announced the Rearmament. America’s Defense Fund Cashed the Checks
• Neutral Sentiment: The company announced a planned legal leadership transition, with Greg Gallopoulos retiring at the end of 2026 and Nick Barnaby set to succeed him in 2027. The change appears orderly and has not raised major red flags so far. How Investors Are Reacting To General Dynamics (GD) Legal Succession And Submarine-Driven Earnings Optimism
• Neutral Sentiment: Peer-comparison and stock-rotation articles are drawing attention to General Dynamics versus Lockheed Martin, but these pieces are mostly valuation and relative-strength commentary rather than new company-specific catalysts. Lockheed Martin vs. General Dynamics: Which Stock is the Better Buy?
• Neutral Sentiment: Allison Transmission announced a supply deal tied to General Dynamics European Land Systems, which is supportive of the business but not clearly a major stock-moving development on its own. Allison Transmission to Supply Fully Automatic Transmissions to General Dynamics European Land Systems for EAGLE Series Vehicles for German Armed Forces

Wall Street Analyst Weigh In

A number of equities research analysts have recently weighed in on the stock. The Goldman Sachs Group dropped their price objective on shares of General Dynamics from $327.00 to $313.00 and set a "sell" rating on the stock in a report on Monday, May 4th. Morgan Stanley raised their target price on General Dynamics from $410.00 to $435.00 and gave the stock an "overweight" rating in a research note on Thursday, April 30th. Wall Street Zen upgraded General Dynamics from a "buy" rating to a "strong-buy" rating in a research note on Saturday, June 13th. Bank of America increased their price objective on General Dynamics from $400.00 to $415.00 and gave the company a "buy" rating in a report on Monday, July 6th. Finally, Deutsche Bank Aktiengesellschaft reduced their price objective on General Dynamics from $387.00 to $377.00 and set a "hold" rating for the company in a research note on Wednesday, May 6th. Two investment analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, five have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, General Dynamics presently has a consensus rating of "Moderate Buy" and an average price target of $391.15.

General Dynamics Stock Up 3.8%

The company has a market cap of $104.73 billion, a price-to-earnings ratio of 24.29, a PEG ratio of 2.21 and a beta of 0.34. The business has a fifty day moving average of $354.33 and a two-hundred day moving average of $351.26. The company has a current ratio of 1.38, a quick ratio of 0.90 and a debt-to-equity ratio of 0.24.

General Dynamics (NYSE:GD - Get Free Report) last issued 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 17.41% and a net margin of 8.07%.The company had revenue of $13.48 billion for the quarter, compared to analyst estimates of $12.70 billion. During the same period last year, the company earned $3.66 earnings per share. General Dynamics's quarterly revenue was up 10.3% compared to the same quarter last year. As a group, equities analysts anticipate that General Dynamics Corporation will post 16.66 EPS for the current fiscal year.

General Dynamics Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, August 7th. Investors of record on Thursday, July 2nd will be paid a $1.59 dividend. The ex-dividend date of this dividend is Thursday, July 2nd. This represents a $6.36 dividend on an annualized basis and a yield of 1.6%. General Dynamics's dividend payout ratio (DPR) is currently 40.03%.

Insider Activity

In other General Dynamics news, EVP Mark Lagrand Burns sold 36,480 shares of the business's stock in a transaction that occurred on Tuesday, May 12th. The stock was 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 in the company, valued at approximately $13,457,677.75. The trade was a 48.35% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. 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 value of $2,000,200.00. Following the transaction, the director directly owned 10,643 shares of the company's stock, valued at $3,884,695. The trade was a 33.99% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 78,190 shares of company stock worth $27,041,022. 1.40% of the stock is currently owned by insiders.

Institutional Investors Weigh In On General Dynamics

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Whipplewood Advisors LLC grew its stake in General Dynamics by 1,725.0% during the 1st quarter. Whipplewood Advisors LLC now owns 73 shares of the aerospace company's stock valued at $25,000 after acquiring an additional 69 shares in the last quarter. Steph & Co. raised its holdings in General Dynamics by 65.2% in 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 during the last quarter. Scarborough Advisors LLC purchased a new position in General Dynamics in the 1st quarter worth approximately $29,000. Wilkerson Advisory Group LLC boosted its holdings in shares of General Dynamics by 79.6% during the 1st quarter. Wilkerson Advisory Group LLC now owns 88 shares of the aerospace company's stock worth $30,000 after purchasing an additional 39 shares during the last quarter. Finally, Center for Financial Planning Inc. boosted its holdings in shares of General Dynamics by 220.7% during the 4th quarter. Center for Financial Planning Inc. now owns 93 shares of the aerospace company's stock worth $31,000 after purchasing an additional 64 shares during the last quarter. Institutional investors and hedge funds own 86.14% of the company's stock.

About General Dynamics

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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