General Dynamics' Neutral Rating Reaffirmed by Robert W. Baird

On Tuesday, analysts from Robert W. Baird confirmed a "neutral" rating for General Dynamics (NYSE:GD). In their report, they set a new target price of $283.00 for the stock, which is a decrease from their previous price target of $345.00. This adjusted target implies a potential upside of approximately 7.31% from the company's current trading price.

General Dynamics, a major player in the aerospace sector, has drawn attention from various analysts recently. On January 8th, Wells Fargo & Company lowered their target price from $295.00 to $279.00 while maintaining an "equal weight" rating on the stock. Similarly, on December 19th, Royal Bank of Canada revised their rating from "outperform" to "sector perform" and adjusted their target down from $330.00 to $290.00. Additionally, Wolfe Research reduced the company's rating from "outperform" to "peer perform" on December 11th.

Recent Analyst Ratings

Despite the changes in ratings, Citigroup raised their target price on General Dynamics from $331.00 to $354.00 and maintained a "buy" rating on October 10th. Conversely, The Goldman Sachs Group issued a downgrade on December 12th, lowering their rating from "neutral" to "sell" and setting a new price target of $245.00.

Currently, Wall Street analysts have varied opinions on General Dynamics. One analyst has given the stock a sell rating, eleven have issued hold ratings, and eight have categorized it as a buy. There is also one strong buy rating in the mix. According to MarketBeat, the average rating for the company is "hold", with a consensus target price of $304.53.

Market Performance

General Dynamics stock opened at $263.73 on the day of the report. The company has a market capitalization of $72.52 billion, with a price-to-earnings ratio of 20.09 and a price-to-earnings-growth ratio of 1.62. Over the past year, shares have fluctuated, with a low of $247.36 and a high of $316.90. The stock has a debt-to-equity ratio of 0.32, indicating moderate levels of debt, and a current ratio of 1.32, suggesting sufficient short-term liquidity.

In its most recent quarterly earnings report released on October 23rd, General Dynamics reported earnings per share of $3.35, which was below the consensus estimate of $3.48. However, the company's revenue for the quarter reached $11.67 billion, exceeding analysts’ expectations of $11.65 billion, reflecting a 10.4% year-over-year revenue growth.

Share Repurchase and Insider Activity

On December 4th, General Dynamics' Board of Directors approved a share repurchase plan, allowing the company to buy back up to 10 million shares. This move often indicates that the company's board believes that the stock is undervalued.

In terms of insider trading, VP Christopher J. Brady recently sold 5,540 shares for an average price of $280.91, totaling approximately $1.56 million. Post-sale, he continues to hold around 20,296 shares in the company.

Institutional Investments

Recent movements from institutional investors have influenced General Dynamics' stock. MFA Wealth Advisors LLC increased its holdings by 241.7%, acquiring additional shares, while several other firms made new investments in the aerospace company during the third quarter. Currently, institutional investors own about 86.14% of General Dynamics' shares.

About General Dynamics

General Dynamics Corporation operates across different sectors, including Aerospace, Marine Systems, Combat Systems, and Technologies. The Aerospace segment is particularly noted for its production of business jets and related services.

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