General Dynamics (NYSE:GD) Price Target Raised to $435.00 at Morgan Stanley

Key Points

• Morgan Stanley raised its price target on General Dynamics to $435 (from $410) and kept an "overweight" rating, implying roughly a 27.75% upside from the prior close.
• Q1 beat and guidance raise: GD reported $4.10 EPS (vs. $3.67 est.) and $13.48B revenue (vs. $12.64B est.), raised FY‑2026 EPS guidance to $16.45–16.55, and cited strong order flow and cash generation supporting improved sentiment.
• Insiders sold 51,260 shares in the last 90 days (including CEO Phebe Novakovic), while analyst coverage is mixed but averages a "Moderate Buy" with a mean price target of $391.17.

General Dynamics (NYSE:GD - Get Free Report) had its price target hoisted by stock analysts at Morgan Stanley from $410.00 to $435.00 in a research note issued on Thursday,MarketScreener reports. The brokerage presently has an "overweight" rating on the aerospace company's stock. Morgan Stanley's target price suggests a potential upside of 27.75% from the stock's previous close.

Other research analysts have also issued reports about the company. Citigroup decreased their price objective on General Dynamics from $389.00 to $380.00 and set a "neutral" rating on the stock in a report on Wednesday, April 1st. BNP Paribas Exane boosted their target price on shares of General Dynamics from $410.00 to $430.00 and gave the company an "outperform" rating in a research report on Tuesday, April 7th. Jefferies Financial Group decreased their price target on shares of General Dynamics from $385.00 to $380.00 and set a "hold" rating on the stock in a research note on Tuesday, April 7th. Wells Fargo & Company initiated coverage on shares of General Dynamics in a research note on Wednesday, April 1st. They issued an "overweight" rating and a $400.00 price objective for the company. Finally, Wolfe Research boosted their price objective on shares of General Dynamics from $400.00 to $415.00 and gave the company an "outperform" rating in a report on Monday, January 12th. Two research analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average price target of $391.17.

General Dynamics Trading Up 0.5%

Shares of GD stock opened at $340.51 on Thursday. General Dynamics has a 12-month low of $266.98 and a 12-month high of $369.70. The company has a market capitalization of $92.22 billion, a PE ratio of 22.07, a price-to-earnings-growth ratio of 2.09 and a beta of 0.38. The firm has a 50 day moving average price of $345.77 and a two-hundred day moving average price of $346.19. The company has a quick ratio of 0.89, a current ratio of 1.44 and a debt-to-equity ratio of 0.27.

General Dynamics (NYSE:GD - Get Free Report) last announced its earnings results on Wednesday, April 29th. The aerospace company reported $4.10 earnings per share for the quarter, topping analysts' consensus estimates of $3.67 by $0.43. The company had revenue of $13.48 billion for the quarter, compared to analyst estimates of $12.64 billion. General Dynamics had a return on equity of 17.57% and a net margin of 8.01%.The firm's quarterly revenue was up 10.3% compared to the same quarter last year. During the same quarter last year, the company earned $3.66 earnings per share. As a group, analysts predict that General Dynamics will post 16.3 earnings per share for the current year.

Insider Activity

In related news, CEO Phebe N. Novakovic sold 32,918 shares of the stock in a transaction that occurred on 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 sale, 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 transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, EVP Mark Lagrand Burns sold 10,153 shares of General Dynamics stock in a transaction that occurred on Wednesday, March 11th. The shares were sold at an average price of $354.95, for a total transaction of $3,603,807.35. Following the completion of the transaction, the executive vice president directly owned 38,975 shares in the company, valued at $13,834,176.25. This trade represents a 20.67% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 51,260 shares of company stock valued at $18,133,971 in the last 90 days. 1.40% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On General Dynamics

Several hedge funds and other institutional investors have recently modified their holdings of GD. Dunhill Financial LLC grew its position in General Dynamics by 620.0% in the third quarter. Dunhill Financial LLC now owns 72 shares of the aerospace company's stock valued at $25,000 after acquiring an additional 62 shares during the last quarter. KERR FINANCIAL PLANNING Corp bought a new position in shares of General Dynamics in the third quarter worth about $25,000. Dagco Inc. bought a new position in shares of General Dynamics in the fourth quarter worth about $25,000. Burkett Financial Services LLC boosted its stake in shares of General Dynamics by 650.0% in the 3rd quarter. Burkett Financial Services LLC now owns 75 shares of the aerospace company's stock valued at $26,000 after purchasing an additional 65 shares in the last quarter. Finally, Steph & Co. grew 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 valued at $26,000 after purchasing an additional 30 shares during the last quarter. Institutional investors own 86.14% of the company's stock.

Key General Dynamics News

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

• Positive Sentiment: Q1 beat and guidance raise — GD reported $13.5B revenue (+10.3% y/y) and $4.10 EPS, topping estimates and raising FY‑2026 EPS guidance to 16.45–16.55, which supports upward revisions to analyst estimates. General Dynamics Reports First-Quarter 2026 Financial Results
• Positive Sentiment: Strong segment performance and order flow — Marine Systems and Combat/Aerospace drove the quarter; company reported a ~2:1 book‑to‑bill and $2.2B operating cash flow, underpinning near‑term revenue visibility. GD Q1 Earnings Beat Estimates on Strong Orders and Cash Flow
• Positive Sentiment: Market reaction and sentiment shift — Coverage and commentary note a one‑day share jump (~8–11%) after the beat‑and‑raise and valuation checks highlight improved sentiment and solid 1‑year total return momentum. General Dynamics (GD) Valuation Check After Strong Q1 Beat And Upgraded Earnings Outlook
• Positive Sentiment: Program execution: Columbia‑class sub progress — Management said the first Columbia‑class sub is tracking to a 2028 delivery, reducing schedule risk on a major shipbuilding program. First Columbia-class Sub Tracking to 2028 Delivery, General Dynamics Says
• Neutral Sentiment: Guidance beat is modest — the updated FY‑2026 EPS range is above consensus but the raise is relatively contained, so upside depends on continued order conversion and margin trends. General Dynamics jumps on strong Q1 led by marine and aerospace segments
• Negative Sentiment: Program/contract uncertainty remains in pockets — earlier stop‑work issues on an Army artillery shell plant have appeared in coverage, highlighting that isolated contract or government‑procurement hiccups can create downside risk despite the strong quarter. General Dynamics gets unexpected War Department win ahead of earnings

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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