General Dynamics (GD) Raised to Buy at Zacks Investment Research
General Dynamics (NYSE:GD) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research note issued on Friday. The firm presently has a $234.00 price target on the aerospace company’s stock. Zacks Investment Research‘s price target points to a potential upside of 11.91% from the company’s current price.
According to Zacks, “General Dynamics is one of the only two contractors in the world equipped to build nuclear-powered submarines and its diverse portfolio of products and services along with its wide customer base provides it with an opportunity to generate solid revenues from different sources. The recent budgetary amendments in the country have been in favor of the company’s business line and the company continues to secure sizeable orders at regular intervals. However, General Dynamics operates in a highly competitive market and has to rely on other companies to provide materials, components and subsystems for its products. Moreover, the company underperformed the broader industry in last six months. Further, the company’s dependence on international sales for a major portion of its revenues exposes it to the risk of currency fluctuations.”
Several other equities research analysts have also recently commented on GD. ValuEngine cut General Dynamics from a “buy” rating to a “hold” rating in a report on Tuesday, October 3rd. Deutsche Bank reissued a “hold” rating and set a $210.00 target price (up previously from $200.00) on shares of General Dynamics in a report on Monday, October 2nd. Stifel Nicolaus reissued a “hold” rating and set a $220.00 target price on shares of General Dynamics in a report on Tuesday, January 9th. Jefferies Group reissued a “buy” rating and set a $237.00 target price on shares of General Dynamics in a report on Monday, January 8th. Finally, Cowen reissued a “buy” rating and set a $230.00 target price on shares of General Dynamics in a report on Thursday, October 19th. Three investment analysts have rated the stock with a sell rating, four have assigned a hold rating and nine have issued a buy rating to the stock. General Dynamics currently has an average rating of “Hold” and an average target price of $218.92.
General Dynamics (NYSE:GD) last announced its earnings results on Wednesday, October 25th. The aerospace company reported $2.52 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $2.43 by $0.09. General Dynamics had a return on equity of 27.98% and a net margin of 9.94%. The firm had revenue of $7.58 billion for the quarter, compared to analysts’ expectations of $7.94 billion. During the same quarter in the previous year, the company earned $2.36 earnings per share. The firm’s quarterly revenue was down 1.0% compared to the same quarter last year. analysts expect that General Dynamics will post 9.81 EPS for the current year.
In other General Dynamics news, VP Gregory S. Gallopoulos sold 78,370 shares of the business’s stock in a transaction on Monday, November 6th. The shares were sold at an average price of $202.93, for a total transaction of $15,903,624.10. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, insider John Patrick Casey sold 34,945 shares of the business’s stock in a transaction on Wednesday, November 1st. The shares were sold at an average price of $201.38, for a total transaction of $7,037,224.10. Following the sale, the insider now directly owns 144,378 shares in the company, valued at $29,074,841.64. The disclosure for this sale can be found here. 6.70% of the stock is currently owned by corporate insiders.
A number of large investors have recently made changes to their positions in GD. SNS Financial Group LLC acquired a new stake in General Dynamics during the 2nd quarter valued at $210,000. Gerber Kawasaki Wealth & Investment Management raised its stake in General Dynamics by 1.5% during the 2nd quarter. Gerber Kawasaki Wealth & Investment Management now owns 3,340 shares of the aerospace company’s stock valued at $671,000 after purchasing an additional 50 shares during the period. Synovus Financial Corp raised its stake in General Dynamics by 55.3% during the 2nd quarter. Synovus Financial Corp now owns 2,008 shares of the aerospace company’s stock valued at $397,000 after purchasing an additional 715 shares during the period. Northwestern Mutual Investment Management Company LLC raised its stake in General Dynamics by 119.7% during the 2nd quarter. Northwestern Mutual Investment Management Company LLC now owns 126,386 shares of the aerospace company’s stock valued at $17,598,000 after purchasing an additional 68,861 shares during the period. Finally, Atlantic Trust Group LLC raised its stake in General Dynamics by 1.1% during the 2nd quarter. Atlantic Trust Group LLC now owns 25,677 shares of the aerospace company’s stock valued at $5,087,000 after purchasing an additional 287 shares during the period. 86.76% of the stock is currently owned by institutional investors.
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About General Dynamics
General Dynamics Corporation is a global aerospace and defense company. The Company offers a portfolio of products and services in business aviation; combat vehicles, weapons systems and munitions; information technology (IT) services and C4ISR (command, control, communications, computers, intelligence, surveillance and reconnaissance) solutions, and shipbuilding and ship repair.
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