General Dynamics (NYSE:GD) Reaches New 52-Week High - Should You Buy?

Key Points

• General Dynamics stock hit a new 52-week high of $347.37, trading at $343.47 with a volume of over 740,000 shares.
• Analysts have set varied price targets, with the consensus average at $315.78, reflecting a mix of ratings from "Strong Buy" to "Sell."
• The company declared a quarterly dividend of $1.50 per share, representing a yield of 1.7% and a payout ratio of 40.27%.

General Dynamics Corporation (NYSE:GD - Get Free Report)'s stock price reached a new 52-week high during mid-day trading on Wednesday . The stock traded as high as $347.37 and last traded at $343.47, with a volume of 740582 shares traded. The stock had previously closed at $346.50.

Analysts Set New Price Targets

Several research analysts have recently issued reports on GD shares. Sanford C. Bernstein set a $314.00 price target on General Dynamics and gave the stock a "market perform" rating in a research note on Monday, July 14th. JPMorgan Chase & Co. lifted their price target on General Dynamics from $284.00 to $345.00 and gave the stock an "overweight" rating in a research note on Thursday, July 24th. Seaport Res Ptn raised General Dynamics from a "hold" rating to a "strong-buy" rating in a research note on Monday, September 29th. Weiss Ratings reaffirmed a "buy (b)" rating on shares of General Dynamics in a research note on Saturday, September 27th. Finally, Jefferies Financial Group set a $325.00 price target on General Dynamics and gave the stock a "hold" rating in a research note on Wednesday, July 9th. One equities research analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating, eleven have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the company has an average rating of "Hold" and an average target price of $315.78.

General Dynamics Stock Down 0.9%

The firm's 50 day moving average is $323.16 and its two-hundred day moving average is $295.42. The stock has a market cap of $92.39 billion, a price-to-earnings ratio of 23.05, a P/E/G ratio of 2.12 and a beta of 0.47. The company has a current ratio of 1.36, a quick ratio of 0.83 and a debt-to-equity ratio of 0.32.

General Dynamics (NYSE:GD - Get Free Report) last announced its earnings results on Wednesday, July 23rd. The aerospace company reported $3.74 earnings per share for the quarter, beating the consensus estimate of $3.47 by $0.27. General Dynamics had a net margin of 8.13% and a return on equity of 17.99%. The firm had revenue of $13.04 billion during the quarter, compared to the consensus estimate of $12.13 billion. During the same quarter in the previous year, the company posted $3.26 EPS. The firm's revenue for the quarter was up 8.9% on a year-over-year basis. General Dynamics has set its FY 2025 guidance at 15.050-15.150 EPS. On average, sell-side analysts predict that General Dynamics Corporation will post 14.83 EPS for the current year.

General Dynamics Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, November 14th. Shareholders of record on Friday, October 10th will be issued a $1.50 dividend. The ex-dividend date is Friday, October 10th. This represents a $6.00 annualized dividend and a yield of 1.7%. General Dynamics's payout ratio is 40.27%.

Insider Buying and Selling

In other General Dynamics news, EVP Marguerite Amy Gilliland sold 33,740 shares of General Dynamics stock in a transaction dated Friday, August 8th. The stock was sold at an average price of $315.20, for a total value of $10,634,848.00. Following the completion of the sale, the executive vice president owned 45,192 shares in the company, valued at $14,244,518.40. The trade was a 42.75% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, VP Christopher J. Brady sold 8,150 shares of General Dynamics stock in a transaction dated Monday, August 25th. The shares were sold at an average price of $321.18, for a total value of $2,617,617.00. Following the completion of the sale, the vice president owned 22,818 shares of the company's stock, valued at $7,328,685.24. This trade represents a 26.32% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 275,020 shares of company stock worth $86,414,503 over the last ninety days. Insiders own 1.50% of the company's stock.

Institutional Trading of General Dynamics

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Inlight Wealth Management LLC purchased a new stake in shares of General Dynamics during the 1st quarter worth about $26,000. Smallwood Wealth Investment Management LLC purchased a new stake in shares of General Dynamics during the 1st quarter worth about $27,000. Quarry LP grew its holdings in shares of General Dynamics by 783.3% during the 1st quarter. Quarry LP now owns 106 shares of the aerospace company's stock worth $29,000 after purchasing an additional 94 shares during the period. Vermillion & White Wealth Management Group LLC grew its holdings in shares of General Dynamics by 80.3% during the 2nd quarter. Vermillion & White Wealth Management Group LLC now owns 110 shares of the aerospace company's stock worth $32,000 after purchasing an additional 49 shares during the period. Finally, NewSquare Capital LLC grew its holdings in shares of General Dynamics by 64.7% during the 2nd quarter. NewSquare Capital LLC now owns 112 shares of the aerospace company's stock worth $33,000 after purchasing an additional 44 shares during the period. Hedge funds and other institutional investors own 86.14% of the company's stock.

About General Dynamics

General Dynamics Corporation operates as an aerospace and defense company worldwide. It operates through four segments: Aerospace, Marine Systems, Combat Systems, and Technologies. The Aerospace segment produces and sells business jets; and offers aircraft maintenance and repair, management, aircraft-on-ground support and completion, charter, staffing, and fixed-base operator services.

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