General Dynamics (NYSE:GD) Sets New 1-Year High - Still a Buy?

Key Points

• General Dynamics (NYSE:GD) reached a new 1-year high of $327.26, reflecting a positive trading momentum and a significant increase compared to its previous close of $323.05.
• Analysts have raised their price targets for the stock, with JPMorgan Chase setting a new target of $345.00, while Barclays raised theirs to $350.00, confirming a strong buy sentiment.
• The company recently reported a quarterly EPS of $3.74, surpassing expectations, and announced a quarterly dividend of $1.50 per share to be paid on November 14th, highlighting its robust financial health.

General Dynamics Corporation (NYSE:GD - Get Free Report) hit a new 52-week high during mid-day trading on Thursday . The stock traded as high as $326.83 and last traded at $327.26, with a volume of 66079 shares trading hands. The stock had previously closed at $323.05.

Analysts Set New Price Targets

GD has been the subject of a number of recent research reports. JPMorgan Chase & Co. increased their price objective on General Dynamics from $284.00 to $345.00 and gave the stock an "overweight" rating in a research report on Thursday, July 24th. Barclays boosted their price target on General Dynamics from $285.00 to $350.00 and gave the stock an "overweight" rating in a research note on Tuesday, July 29th. 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. Cowen reaffirmed a "buy" rating on shares of General Dynamics in a research note on Wednesday, June 25th. Finally, Deutsche Bank Aktiengesellschaft upgraded General Dynamics from a "hold" rating to a "buy" rating and boosted their price target for the company from $298.00 to $342.00 in a report on Tuesday, July 8th. Nine equities research analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, the company has a consensus rating of "Hold" and a consensus price target of $315.78.

General Dynamics Stock Up 1.4%

The company has a debt-to-equity ratio of 0.32, a current ratio of 1.36 and a quick ratio of 0.83. The firm's 50-day moving average price is $312.40 and its 200 day moving average price is $285.84. The firm has a market cap of $88.10 billion, a P/E ratio of 21.99, a PEG ratio of 1.97 and a beta of 0.50.

General Dynamics (NYSE:GD - Get Free Report) last announced its quarterly earnings results on Wednesday, July 23rd. The aerospace company reported $3.74 EPS 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 company had revenue of $13.04 billion for the quarter, compared to analyst estimates of $12.13 billion. During the same quarter last year, the business earned $3.26 earnings per share. General Dynamics's revenue was up 8.9% compared to the same quarter last year. General Dynamics has set its FY 2025 guidance at 15.050-15.150 EPS. On average, equities research analysts expect that General Dynamics Corporation will post 14.83 earnings per share for the current fiscal year.

General Dynamics Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, November 14th. Shareholders of record on Friday, October 10th will be paid a dividend of $1.50 per share. The ex-dividend date of this dividend is Friday, October 10th. This represents a $6.00 dividend on an annualized basis and a dividend yield of 1.8%. General Dynamics's dividend payout ratio (DPR) is 40.27%.

Insider Activity at General Dynamics

In related news, EVP Marguerite Amy Gilliland sold 33,740 shares of General Dynamics stock in a transaction on Friday, August 8th. The shares were 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 of the company's stock, valued at approximately $14,244,518.40. The trade was a 42.75% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Phebe N. Novakovic sold 129,090 shares of General Dynamics stock in a transaction on Monday, August 18th. The stock was sold at an average price of $313.57, for a total transaction of $40,478,751.30. Following the completion of the transaction, the chief executive officer owned 769,607 shares in the company, valued at $241,325,666.99. This trade represents a 14.36% decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 458,260 shares of company stock worth $138,125,545. 1.50% of the stock is currently owned by company insiders.

Institutional Trading of General Dynamics

Several large investors have recently added to or reduced their stakes in the company. 1858 Wealth Management LLC grew its stake in General Dynamics by 1.0% during the second quarter. 1858 Wealth Management LLC now owns 3,256 shares of the aerospace company's stock worth $950,000 after buying an additional 32 shares during the last quarter. Nicholson Wealth Management Group LLC lifted its holdings in General Dynamics by 0.5% in the second quarter. Nicholson Wealth Management Group LLC now owns 6,582 shares of the aerospace company's stock valued at $1,920,000 after buying an additional 33 shares during the period. Gilbert & Cook Inc. raised its holdings in General Dynamics by 1.4% in the second quarter. Gilbert & Cook Inc. now owns 2,389 shares of the aerospace company's stock worth $697,000 after purchasing an additional 33 shares during the period. Crewe Advisors LLC raised its holdings in General Dynamics by 10.9% in the second quarter. Crewe Advisors LLC now owns 347 shares of the aerospace company's stock worth $101,000 after purchasing an additional 34 shares during the period. Finally, CVA Family Office LLC raised its holdings in General Dynamics by 1.5% in the second quarter. CVA Family Office LLC now owns 2,256 shares of the aerospace company's stock worth $658,000 after purchasing an additional 34 shares during the period. 86.14% of the stock is owned by institutional investors.

General Dynamics Company Profile

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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