General Dynamics (NYSE:GD) Stock Price Expected to Rise, Morgan Stanley Analyst Says

Key Points

• Morgan Stanley raised General Dynamics’ price target to $465 from $435 and maintained an “overweight” rating, implying 22.3% upside from the previous close.
• General Dynamics reported strong quarterly results, with EPS of $4.24 beating the $3.96 consensus and revenue of $14.09 billion exceeding estimates; revenue increased 8.1% year over year.
• Analyst sentiment remains favorable, with MarketBeat reporting a “Moderate Buy” consensus rating and an average price target of $400.26, although several insiders recently sold shares.

General Dynamics (NYSE:GD - Get Free Report) had its price target raised by stock analysts at Morgan Stanley from $435.00 to $465.00 in a note issued to investors on Thursday,Benzinga reports. The firm presently has an "overweight" rating on the aerospace company's stock. Morgan Stanley's target price points to a potential upside of 22.30% from the company's previous close.

GD has been the topic of several other research reports. Bank of America raised their target price on shares of General Dynamics from $400.00 to $415.00 and gave the company a "buy" rating in a report on Monday, July 6th. DA Davidson dropped their price objective on shares of General Dynamics from $384.00 to $375.00 in a research report on Thursday, April 30th. Deutsche Bank Aktiengesellschaft reaffirmed a "hold" rating and set a $384.00 price objective on shares of General Dynamics in a research report on Thursday. Weiss Ratings upgraded shares of General Dynamics from a "buy (b-)" rating to a "buy (b)" rating in a research note on Wednesday, July 1st. Finally, Wells Fargo & Company began coverage on General Dynamics in a research note on Wednesday, April 1st. They issued an "overweight" rating and a $400.00 price target on the stock. Two analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, General Dynamics presently has a consensus rating of "Moderate Buy" and a consensus target price of $400.26.

General Dynamics Stock Down 0.2%

GD traded down $0.76 on Thursday, hitting $380.20. 554,348 shares of the company were exchanged, compared to its average volume of 1,356,332. General Dynamics has a twelve month low of $306.03 and a twelve month high of $400.00. The company has a market cap of $102.82 billion, a price-to-earnings ratio of 23.93, a price-to-earnings-growth ratio of 2.37 and a beta of 0.34. The company has a current ratio of 1.38, a quick ratio of 0.90 and a debt-to-equity ratio of 0.24. The firm has a 50-day moving average price of $359.03 and a two-hundred day moving average price of $352.49.

General Dynamics (NYSE:GD - Get Free Report) last posted its quarterly earnings results on Wednesday, July 29th. The aerospace company reported $4.24 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $3.96 by $0.28. The company had revenue of $14.09 billion for the quarter, compared to analyst estimates of $13.52 billion. General Dynamics had a return on equity of 17.41% and a net margin of 8.07%.General Dynamics's revenue for the quarter was up 8.1% compared to the same quarter last year. During the same quarter last year, the company earned $3.74 EPS. General Dynamics has set its FY 2026 guidance at 16.800-16.900 EPS. On average, equities analysts predict that General Dynamics will post 16.66 earnings per share for the current year.

Insider Transactions at General Dynamics

In other General Dynamics news, Director Mark Malcolm sold 5,480 shares of the business's stock in a transaction that occurred on Wednesday, June 17th. The stock was sold at an average price of $365.00, for a total transaction of $2,000,200.00. Following the transaction, the director owned 10,643 shares in the company, valued at approximately $3,884,695. The trade was a 33.99% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, EVP Mark Lagrand Burns sold 36,480 shares of the stock in a transaction dated Tuesday, May 12th. The shares were sold at an average price of $345.29, for a total transaction of $12,596,179.20. Following the completion of the transaction, the executive vice president owned 38,975 shares of the company's stock, valued at $13,457,677.75. This represents a 48.35% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 78,190 shares of company stock worth $27,041,022 in the last quarter. Insiders own 1.40% of the company's stock.

Institutional Investors Weigh In On General Dynamics

Hedge funds and other institutional investors have recently made changes to their positions in the business. AQR Capital Management LLC grew its stake in shares of General Dynamics by 118.3% during the 3rd quarter. AQR Capital Management LLC now owns 1,663,847 shares of the aerospace company's stock valued at $567,372,000 after buying an additional 901,679 shares during the period. Northern Trust Corp increased its stake in General Dynamics by 35.0% during the third quarter. Northern Trust Corp now owns 3,332,917 shares of the aerospace company's stock worth $1,136,525,000 after acquiring an additional 863,392 shares during the last quarter. Balyasny Asset Management L.P. raised its holdings in shares of General Dynamics by 831.1% in the 3rd quarter. Balyasny Asset Management L.P. now owns 737,259 shares of the aerospace company's stock worth $251,405,000 after purchasing an additional 658,081 shares during the period. Vanguard Group Inc. lifted its stake in shares of General Dynamics by 2.2% in the 4th quarter. Vanguard Group Inc. now owns 24,767,330 shares of the aerospace company's stock valued at $8,338,169,000 after purchasing an additional 528,769 shares in the last quarter. Finally, Corient Private Wealth LLC increased its position in General Dynamics by 613.0% during the 4th quarter. Corient Private Wealth LLC now owns 613,732 shares of the aerospace company's stock worth $206,619,000 after purchasing an additional 527,651 shares in the last quarter. Hedge funds and other institutional investors own 86.14% of the company's stock.

Key Headlines Impacting General Dynamics

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

• Positive Sentiment: Strong Q2 earnings and guidance: General Dynamics reported second-quarter revenue of $14.1 billion, up 8.1% year over year, and diluted EPS of $4.24, exceeding consensus estimates near $3.96. All four business segments grew, while operating margin expanded to 10.4%. The company raised or reaffirmed above-consensus 2026 guidance of $16.80-$16.90 EPS and approximately $55.7 billion in revenue. General Dynamics Reports Second-Quarter 2026 Financial Results
• Positive Sentiment: Record submarine contract boosts visibility: General Dynamics Electric Boat received a $76.6 billion U.S. Navy award covering five Columbia-class and nine Virginia-class submarines, plus shipyard infrastructure support. The multidecade program materially strengthens backlog and provides long-term revenue and cash-flow visibility. General Dynamics Electric Boat awarded construction contracts for 14 submarines
• Positive Sentiment: Demand and cash generation remain healthy: Quarterly orders reached $20 billion, producing a 1.4-to-1 book-to-bill ratio and a record $136.5 billion backlog. Operating cash flow was $1.9 billion, supporting dividends and investment. General Dynamics Q2 revenue rises 8.1%
• Neutral Sentiment: Valuation is still debated: A discounted-cash-flow analysis cited in recent coverage suggests GD may remain below estimated intrinsic value, but the stock’s roughly 116% five-year return and trading near its annual high raise the possibility that much of the positive news is already reflected in the shares. Is General Dynamics Reasonable After Its $76.6B Submarine Win?
• Negative Sentiment: Investors remain cautious about execution: Supply-chain constraints, margin pressure, and limited visibility into future U.S. defense spending temper the bullish earnings and backlog story. William Blair maintained a Hold rating, which may encourage profit-taking after the recent rally. Balanced View on General Dynamics

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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