General Dynamics (NYSE:GD) Share Price Breaks Above 200 Day Moving Average - Should You Sell?

Key Points

• General Dynamics shares moved above their 200-day moving average, trading as high as $357.13 versus the $354.88 average. The stock has a market capitalization of approximately $96.5 billion and a P/E ratio of 21.76.
• Analyst sentiment remains favorable, with a consensus rating of “Moderate Buy” and an average price target of $402.44, despite several recent target-price reductions.
• General Dynamics reported quarterly earnings and revenue above expectations and declared a quarterly dividend of $1.59, equivalent to a 1.8% yield. However, insiders sold more than 102,000 shares worth approximately $38.6 million during the last quarter.

General Dynamics Corporation (NYSE:GD - Get Free Report) passed above its two hundred day moving average during trading on Monday. The stock has a two hundred day moving average of $354.88 and traded as high as $357.13. General Dynamics shares last traded at $356.5930, with a volume of 1,174,860 shares trading hands.

Analysts Set New Price Targets

Several brokerages recently commented on GD. Royal Bank Of Canada reduced their target price on General Dynamics from $410.00 to $360.00 and set a "sector perform" rating for the company in a research report on Thursday, October 15th. Jefferies Financial Group boosted their price target on shares of General Dynamics from $400.00 to $440.00 and gave the company a "buy" rating in a report on Thursday, July 9th. Robert W. Baird set a $430.00 price objective on shares of General Dynamics in a research note on Thursday, July 30th. Bank of America raised their price objective on shares of General Dynamics from $400.00 to $415.00 and gave the stock a "buy" rating in a report on Monday, July 6th. Finally, TD Cowen decreased their target price on shares of General Dynamics from $420.00 to $380.00 and set a "buy" rating on the stock in a research report on Friday, October 9th. One research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, General Dynamics currently has an average rating of "Moderate Buy" and an average price target of $402.44.

General Dynamics Price Performance

The company has a debt-to-equity ratio of 0.23, a current ratio of 1.44 and a quick ratio of 0.96. The stock has a market capitalization of $96.48 billion, a P/E ratio of 21.76, a PEG ratio of 2.04 and a beta of 0.33. The company's 50 day simple moving average is $354.43 and its two-hundred day simple moving average is $354.88.

General Dynamics (NYSE:GD - Get Free Report) last posted its quarterly earnings data on Wednesday, July 29th. The aerospace company reported $4.24 earnings per share for the quarter, topping the consensus estimate of $3.96 by $0.28. The company had revenue of $14.09 billion during the quarter, compared to analyst estimates of $13.52 billion. General Dynamics had a net margin of 8.18% and a return on equity of 17.43%. The company's revenue was up 8.1% on a year-over-year basis. During the same quarter last year, the business posted $3.74 earnings per share. General Dynamics has set its FY 2026 guidance at 16.800-16.900 EPS. As a group, equities analysts expect that General Dynamics Corporation will post 16.99 EPS for the current fiscal year.

General Dynamics Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, November 13th. Shareholders of record on Friday, October 9th will be given a $1.59 dividend. The ex-dividend date is Friday, October 9th. This represents a $6.36 annualized dividend and a yield of 1.8%. General Dynamics's payout ratio is presently 38.80%.

Insider Buying and Selling at General Dynamics

In other news, EVP Marguerite Gilliland sold 43,180 shares of the firm's stock in a transaction on Friday, July 31st. The stock was sold at an average price of $378.04, for a total value of $16,323,767.20. Following the completion of the sale, the executive vice president directly owned 44,767 shares in the company, valued at approximately $16,923,716.68. This trade represents a 49.10% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. Also, Director Robert K. Steel sold 7,440 shares of the firm's stock in a transaction on Wednesday, September 23rd. The shares were sold at an average price of $346.05, for a total value of $2,574,612.00. Following the completion of the sale, the director owned 3,096 shares of the company's stock, valued at approximately $1,071,370.80. This trade represents a 70.62% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 102,188 shares of company stock worth $38,627,265. 1.40% of the stock is currently owned by insiders.

Institutional Investors Weigh In On General Dynamics

A number of hedge funds have recently added to or reduced their stakes in GD. SYM FINANCIAL Corp lifted its holdings in General Dynamics by 44.4% during the 3rd quarter. SYM FINANCIAL Corp now owns 1,645 shares of the aerospace company's stock worth $546,000 after buying an additional 506 shares in the last quarter. Autumn Glory Partners LLC boosted its position in General Dynamics by 0.5% in the 3rd quarter. Autumn Glory Partners LLC now owns 6,766 shares of the aerospace company's stock valued at $2,245,000 after buying an additional 34 shares during the last quarter. Center for Financial Planning Inc. increased its stake in shares of General Dynamics by 517.9% in the 3rd quarter. Center for Financial Planning Inc. now owns 482 shares of the aerospace company's stock valued at $160,000 after buying an additional 404 shares during the period. Park Avenue Securities LLC increased its stake in shares of General Dynamics by 11.9% in the 3rd quarter. Park Avenue Securities LLC now owns 16,640 shares of the aerospace company's stock valued at $5,522,000 after buying an additional 1,775 shares during the period. Finally, Verdence Capital Advisors LLC raised its position in shares of General Dynamics by 0.4% during the third quarter. Verdence Capital Advisors LLC now owns 8,204 shares of the aerospace company's stock worth $2,722,000 after acquiring an additional 36 shares during the last quarter. Institutional investors own 86.14% of the company's stock.

About General Dynamics

General Dynamics Corporation NYSE: GD is a global aerospace and defense company that develops, manufactures and supports products and services for government and commercial customers. Its operations serve the U.S. government, allied nations and other customers worldwide, with a significant focus on national security, military modernization and mission support.

The company operates through four primary business areas. Aerospace provides Gulfstream business jets and related aircraft services through Gulfstream Aerospace, as well as aircraft management, charter, maintenance and completions services through Jet Aviation.

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