General Dynamics (NYSE:GD) Stock Price Down 4.8% on Disappointing Earnings

General Dynamics Co. (NYSE:GD) shares were down 4.8% during mid-day trading on Wednesday following a weaker than expected earnings announcement. The company traded as low as $276.79 and last traded at $280.36. Approximately 608,182 shares changed hands during mid-day trading, a decline of 42% from the average daily volume of 1,048,641 shares. The stock had previously closed at $294.46.

The aerospace company reported $3.26 EPS for the quarter, missing analysts’ consensus estimates of $3.30 by ($0.04). General Dynamics had a net margin of 7.89% and a return on equity of 16.74%. The company had revenue of $11.98 billion during the quarter, compared to the consensus estimate of $11.46 billion. During the same quarter last year, the firm posted $2.70 EPS. The company’s quarterly revenue was up 18.0% on a year-over-year basis.

General Dynamics Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, August 9th. Stockholders of record on Friday, July 5th will be given a dividend of $1.42 per share. The ex-dividend date is Friday, July 5th. This represents a $5.68 dividend on an annualized basis and a dividend yield of 1.95%. General Dynamics’s dividend payout ratio (DPR) is 46.33%.

Wall Street Analysts Forecast Growth

GD has been the subject of a number of analyst reports. Barclays raised their price objective on General Dynamics from $285.00 to $310.00 and gave the stock an “overweight” rating in a research report on Monday, April 15th. Susquehanna raised their price objective on General Dynamics from $301.00 to $333.00 and gave the stock a “positive” rating in a research report on Friday, April 12th. Jefferies Financial Group raised General Dynamics from a “hold” rating to a “buy” rating and raised their target price for the stock from $305.00 to $335.00 in a research note on Monday, April 29th. The Goldman Sachs Group raised their target price on General Dynamics from $253.00 to $284.00 and gave the stock a “neutral” rating in a research note on Tuesday, April 16th. Finally, Royal Bank of Canada reaffirmed an “outperform” rating and set a $320.00 target price on shares of General Dynamics in a research note on Thursday. Six analysts have rated the stock with a hold rating and thirteen have given a buy rating to the company. According to MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $311.33.

Insider Activity

In other news, CFO Kimberly A. Kuryea sold 13,344 shares of the firm’s stock in a transaction that occurred on Tuesday, May 21st. The stock was sold at an average price of $298.16, for a total value of $3,978,647.04. Following the transaction, the chief financial officer now owns 79,255 shares in the company, valued at $23,630,670.80. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. In other news, CFO Kimberly A. Kuryea sold 13,344 shares of the firm’s stock in a transaction that occurred on Tuesday, May 21st. The stock was sold at an average price of $298.16, for a total value of $3,978,647.04. Following the transaction, the chief financial officer now owns 79,255 shares in the company, valued at $23,630,670.80. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, VP William A. Moss sold 21,050 shares of the firm’s stock in a transaction that occurred on Monday, May 13th. The shares were sold at an average price of $294.85, for a total value of $6,206,592.50. Following the completion of the transaction, the vice president now owns 16,624 shares in the company, valued at approximately $4,901,586.40. The disclosure for this sale can be found here. Insiders have sold 68,636 shares of company stock worth $20,209,317 over the last 90 days. 1.52% of the stock is currently owned by corporate insiders.

Institutional Trading of General Dynamics

A number of hedge funds have recently bought and sold shares of the business. Norges Bank bought a new stake in shares of General Dynamics in the fourth quarter valued at $728,284,000. International Assets Investment Management LLC grew its position in shares of General Dynamics by 10,763.2% in the fourth quarter. International Assets Investment Management LLC now owns 923,593 shares of the aerospace company’s stock valued at $239,829,000 after purchasing an additional 915,091 shares in the last quarter. Verity & Verity LLC purchased a new position in shares of General Dynamics in the first quarter valued at $179,000. 1832 Asset Management L.P. grew its position in shares of General Dynamics by 3,645.4% in the fourth quarter. 1832 Asset Management L.P. now owns 558,586 shares of the aerospace company’s stock valued at $145,048,000 after purchasing an additional 543,672 shares in the last quarter. Finally, Public Employees Retirement Association of Colorado grew its position in shares of General Dynamics by 879.9% in the first quarter. Public Employees Retirement Association of Colorado now owns 340,359 shares of the aerospace company’s stock valued at $96,148,000 after purchasing an additional 305,624 shares in the last quarter. 86.14% of the stock is currently owned by institutional investors.

General Dynamics Stock Performance

The company has a market capitalization of $79.87 billion, a PE ratio of 23.75, a PEG ratio of 1.63 and a beta of 0.60. The company has a quick ratio of 0.87, a current ratio of 1.33 and a debt-to-equity ratio of 0.33. The company has a 50-day moving average price of $292.82 and a two-hundred day moving average price of $281.91.

About General Dynamics

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.