General Dynamics (NYSE:GD) Share Price Breaks Below Two Hundred Day Moving Average - Should You Sell?

Key Points

• General Dynamics fell below its 200-day moving average, trading as low as $348.94 and last at $353.88, compared with the average of $355.05.
• Analyst sentiment remains broadly positive: the consensus is “Moderate Buy” among 17 analysts, with an average price target of $408.94.
• The company beat quarterly estimates, reporting adjusted earnings of $4.49 per share versus $4.12 expected and revenue of $14.57 billion, up 12.9% year over year.

General Dynamics Corporation (NYSE:GD - Get Free Report) passed below its 200-day moving average during trading on Friday. The stock has a 200-day moving average of $355.05 and traded as low as $348.94. General Dynamics shares last traded at $353.8810, with a volume of 1,219,081 shares trading hands.

Wall Street Analysts Forecast Growth

A number of analysts have weighed in on GD shares. Morgan Stanley increased their target price on shares of General Dynamics from $465.00 to $480.00 and gave the company an "overweight" rating in a research report on Tuesday. Jefferies Financial Group reaffirmed a "buy" rating and issued a $455.00 price target on shares of General Dynamics in a report on Monday. UBS Group lifted their target price on General Dynamics from $395.00 to $408.00 and gave the stock a "neutral" rating in a research report on Tuesday, September 8th. Wall Street Zen lowered shares of General Dynamics from a "strong-buy" rating to a "buy" rating in a report on Saturday, August 1st. Finally, TD Cowen lowered their price target on shares of General Dynamics from $420.00 to $380.00 and set a "buy" rating on the stock in a report on Friday, October 9th. Eleven research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $408.94.

General Dynamics Trading Down 0.7%

The company has a debt-to-equity ratio of 0.23, a current ratio of 1.43 and a quick ratio of 0.94. The company has a market cap of $95.63 billion, a price-to-earnings ratio of 20.82, a PEG ratio of 2.15 and a beta of 0.30. The business's 50-day simple moving average is $349.76 and its 200-day simple moving average is $355.05.

General Dynamics (NYSE:GD - Get Free Report) last announced its quarterly earnings data on Friday, October 30th. The aerospace company reported $4.49 EPS for the quarter, topping analysts' consensus estimates of $4.12 by $0.37. General Dynamics had a return on equity of 17.60% and a net margin of 8.24%. The company had revenue of $14.57 billion during the quarter, compared to the consensus estimate of $13.72 billion. During the same quarter last year, the company earned $3.88 EPS. The company's quarterly revenue was up 12.9% on a year-over-year basis. Research analysts predict that General Dynamics Corporation will post 17.29 earnings per share for the current fiscal year.

Insider Buying and Selling

In other General Dynamics news, Director Robert K. Steel sold 7,440 shares of General Dynamics stock in a transaction dated Wednesday, September 23rd. The stock was sold at an average price of $346.05, for a total value of $2,574,612.00. Following the completion of the transaction, the director directly owned 3,096 shares of the company's stock, valued at $1,071,370.80. The trade was a 70.62% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Corporate insiders own 1.40% of the company's stock.

Hedge Funds Weigh In On General Dynamics

Hedge funds have recently added to or reduced their stakes in the stock. Caisse de depot et placement du Quebec grew its holdings in General Dynamics by 454.0% in the second quarter. Caisse de depot et placement du Quebec now owns 180,917 shares of the aerospace company's stock worth $64,088,000 after purchasing an additional 148,262 shares during the period. Empowered Funds LLC purchased a new stake in General Dynamics in the second quarter valued at approximately $21,368,000. United Capital Financial Advisors LLC purchased a new position in General Dynamics during the 2nd quarter worth approximately $30,781,000. Professional Advisory Services Inc. grew its holdings in General Dynamics by 4.0% in the second quarter. Professional Advisory Services Inc. now owns 67,028 shares of the aerospace company's stock valued at $23,744,000 after purchasing an additional 2,562 shares during the last quarter. Finally, FSA Advisors Inc. purchased a new position in shares of General Dynamics in the 2nd quarter valued at $1,254,000. Institutional investors and hedge funds own 86.14% of the company's stock.

About General Dynamics

General Dynamics Corporation is an aerospace and defense company that develops and manufactures products and provides services for commercial, government and military customers. Its businesses span aerospace, marine systems, combat systems and defense technologies.

The company makes Gulfstream business jets and provides aircraft services. Its marine systems operations design and build submarines and surface ships, while its combat systems business produces military vehicles, weapons systems and munitions.

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