Wall Street Zen Downgrades General Dynamics (NYSE:GD) to Buy

Key Points

• Wall Street Zen downgraded General Dynamics from “strong buy” to “buy,” although the broader analyst consensus remains “Moderate Buy” with an average price target of $406.32. Several firms recently raised their targets, including Morgan Stanley to $465.
• General Dynamics reported a strong quarter, with EPS of $4.24 and revenue of $14.09 billion surpassing estimates; revenue rose 8.1% year over year. Management maintained fiscal 2026 EPS guidance of approximately $16.80–$16.90.
• The stock opened at $384.53 and is near its 12-month high, while insiders have sold about $27 million in shares over the past 90 days. Institutional ownership remains high at 86.14%, and investors continue to weigh the company’s large submarine awards against valuation, supply-chain and execution risks.

General Dynamics (NYSE:GD - Get Free Report) was downgraded by equities researchers at Wall Street Zen from a "strong-buy" rating to a "buy" rating in a note issued to investors on Saturday.

Other analysts have also issued reports about the stock. 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. BNP Paribas Exane upped their target price on shares of General Dynamics from $390.00 to $430.00 and gave the stock an "outperform" rating in a research note on Thursday. Morgan Stanley increased their price target on shares of General Dynamics from $435.00 to $465.00 and gave the company an "overweight" rating in a report on Thursday. TD Cowen boosted their price objective on shares of General Dynamics from $390.00 to $420.00 and gave the stock a "buy" rating in a report on Thursday. Finally, DA Davidson lowered their price objective on General Dynamics from $384.00 to $375.00 in a research report on Thursday, April 30th. Two analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $406.32.

General Dynamics Stock Up 0.6%

Shares of NYSE:GD opened at $384.53 on Friday. The company has a current ratio of 1.44, a quick ratio of 0.90 and a debt-to-equity ratio of 0.23. The stock has a fifty day simple moving average of $360.75 and a two-hundred day simple moving average of $352.93. General Dynamics has a 12-month low of $306.03 and a 12-month high of $400.00. The stock has a market capitalization of $104.04 billion, a price-to-earnings ratio of 23.46, a PEG ratio of 2.26 and a beta of 0.34.

General Dynamics (NYSE:GD - Get Free Report) last released its earnings results on Wednesday, July 29th. The aerospace company reported $4.24 EPS for the quarter, topping analysts' consensus estimates of $3.96 by $0.28. The firm had revenue of $14.09 billion for the quarter, compared to analysts' expectations of $13.52 billion. General Dynamics had a return on equity of 17.43% and a net margin of 8.18%.The company's quarterly revenue was up 8.1% on a year-over-year basis. During the same period in the prior year, the firm posted $3.74 earnings per share. General Dynamics has set its FY 2026 guidance at 16.800-16.900 EPS. On average, research analysts anticipate that General Dynamics will post 16.97 earnings per share for the current fiscal year.

Insider Transactions at General Dynamics

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

Institutional Investors Weigh In On General Dynamics

A number of hedge funds have recently added to or reduced their stakes in GD. Vanguard Group Inc. increased its position in General Dynamics by 2.2% during the fourth quarter. Vanguard Group Inc. now owns 24,767,330 shares of the aerospace company's stock valued at $8,338,169,000 after acquiring an additional 528,769 shares during the last quarter. State Street Corp boosted its position in General Dynamics by 2.7% in the fourth quarter. State Street Corp now owns 11,323,170 shares of the aerospace company's stock worth $3,812,058,000 after purchasing an additional 294,456 shares during the last quarter. Geode Capital Management LLC grew its stake in shares of General Dynamics by 3.3% during the 4th quarter. Geode Capital Management LLC now owns 6,065,462 shares of the aerospace company's stock valued at $2,039,742,000 after purchasing an additional 195,604 shares during the period. JPMorgan Chase & Co. increased its position in shares of General Dynamics by 2.2% during the 4th quarter. JPMorgan Chase & Co. now owns 5,307,389 shares of the aerospace company's stock valued at $1,786,786,000 after purchasing an additional 114,647 shares during the last quarter. Finally, Northern Trust Corp lifted its stake in shares of General Dynamics by 3.3% in the 4th quarter. Northern Trust Corp now owns 3,443,453 shares of the aerospace company's stock worth $1,159,273,000 after purchasing an additional 110,536 shares during the period. 86.14% of the stock is currently owned by hedge funds and other institutional investors.

General Dynamics News Roundup

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

• Positive Sentiment: Strong Q2 results: General Dynamics reported adjusted earnings of $4.24 per share and revenue of $14.09 billion, exceeding estimates of $3.96 and $13.52 billion, respectively. Revenue increased 8.1% year over year, while management highlighted broad-based strength, record backlog and solid cash generation. General Dynamics Corporation Q2 2026 Earnings Call Summary
• Positive Sentiment: Largest catalyst is the submarine award: General Dynamics Electric Boat received $29.5 billion for five Columbia-class submarines and $42.1 billion for nine Virginia-class submarines, plus infrastructure support. The $76.6 billion award strengthens long-term visibility and backlog, although the contract value will be recognized over many years. General Dynamics Electric Boat Submarine Award
• Positive Sentiment: Analyst targets moved higher: Morgan Stanley raised its target to $465 and maintained an overweight rating, Susquehanna lifted its target to $455 with a positive rating, and BNP Paribas Exane raised its target to $430 with an outperform rating. These revisions reflect confidence in GD’s backlog and defense demand.
• Positive Sentiment: Growth profile remains attractive: Zacks cited General Dynamics’ earnings growth, improving business momentum and favorable growth characteristics, while the company maintained fiscal 2026 earnings guidance of approximately $16.80–$16.90 per share. Why General Dynamics Is a Strong Growth Stock
• Neutral Sentiment: Valuation is increasingly debated: Some research indicates the shares could remain below estimated intrinsic value, while other analysts argue that the strong defense outlook is already reflected in the stock’s elevated valuation after its substantial multiyear gains.
• Negative Sentiment: Risks remain: Analysts have cited supply-chain and margin pressures, limited visibility into future U.S. defense spending and potential execution challenges associated with the large submarine program. Several reports maintain neutral or downgrade views despite the strong fundamentals.

About General Dynamics

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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