General Dynamics (NYSE:GD) Sets New 1-Year Low Following Weak Earnings

General Dynamics Co. (NYSE:GD)’s stock price reached a new 52-week low during mid-day trading on Wednesday following a weaker than expected earnings announcement. The company traded as low as $247.01 and last traded at $255.73, with a volume of 645433 shares traded. The stock had previously closed at $262.57.

The aerospace company reported $4.15 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $4.29 by ($0.14). General Dynamics had a net margin of 7.90% and a return on equity of 16.59%.

General Dynamics Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, February 7th. Stockholders of record on Friday, January 17th will be issued a $1.42 dividend. This represents a $5.68 annualized dividend and a dividend yield of 2.21%. The ex-dividend date is Friday, January 17th. General Dynamics’s payout ratio is presently 43.26%.

General Dynamics declared that its board has approved a share repurchase program on Wednesday, December 4th that allows the company to buyback 10,000,000 shares. This buyback authorization allows the aerospace company to reacquire shares of its stock through open market purchases. Stock buyback programs are typically a sign that the company’s board believes its stock is undervalued.

Wall Street Analysts Forecast Growth

A number of analysts have recently issued reports on the company. UBS Group cut their price objective on General Dynamics from $337.00 to $281.00 and set a “neutral” rating for the company in a research report on Tuesday. Seaport Res Ptn cut shares of General Dynamics from a “strong-buy” rating to a “hold” rating in a report on Friday, October 11th. Jefferies Financial Group reaffirmed a “hold” rating and issued a $300.00 price target (down previously from $345.00) on shares of General Dynamics in a research note on Thursday, December 12th. Baird R W cut General Dynamics from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, January 14th. Finally, The Goldman Sachs Group decreased their price target on shares of General Dynamics from $245.00 to $241.00 and set a “sell” rating on the stock in a report on Tuesday. One investment analyst has rated the stock with a sell rating, eleven have given a hold rating, eight have assigned a buy rating and one has issued a strong buy rating to the company. According to MarketBeat, General Dynamics presently has a consensus rating of “Hold” and a consensus price target of $301.24.

Insider Transactions at General Dynamics

In other General Dynamics news, VP Christopher J. Brady sold 5,540 shares of the firm’s stock in a transaction that occurred on Friday, November 22nd. The stock was sold at an average price of $280.91, for a total value of $1,556,241.40. Following the completion of the sale, the vice president now owns 20,296 shares of the company’s stock, valued at approximately $5,701,349.36. This trade represents a 21.44 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Insiders own 1.52% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of the business. MFA Wealth Advisors LLC boosted its position in shares of General Dynamics by 241.7% during the third quarter. MFA Wealth Advisors LLC now owns 82 shares of the aerospace company’s stock valued at $25,000 after buying an additional 58 shares during the last quarter. Hara Capital LLC bought a new stake in shares of General Dynamics in the third quarter valued at $26,000. Financial Life Planners bought a new stake in General Dynamics in the 4th quarter valued at about $25,000. Lowe Wealth Advisors LLC purchased a new stake in shares of General Dynamics during the 3rd quarter valued at approximately $30,000. Finally, Heck Capital Advisors LLC bought a new position in shares of General Dynamics in the fourth quarter worth $28,000. Institutional investors and hedge funds own 86.14% of the company’s stock.

General Dynamics Stock Performance

The company has a quick ratio of 0.80, a current ratio of 1.32 and a debt-to-equity ratio of 0.32. The stock has a market capitalization of $70.65 billion, a P/E ratio of 19.57, a PEG ratio of 1.43 and a beta of 0.61. The company has a 50-day moving average price of $268.00 and a two-hundred day moving average price of $287.23.

General Dynamics Company Profile

General Dynamics Corporation operates as an aerospace and defense company worldwide. It operates through four segments: Aerospace, Marine Systems, Combat Systems, and Technologies. The Aerospace segment produces and sells business jets; and offers aircraft maintenance and repair, management, aircraft-on-ground support and completion, charter, staffing, and fixed-base operator services.