General Dynamics (NYSE:GD) Hits New 52-Week Low After Earnings Miss

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

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

General Dynamics Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, February 7th. Stockholders of record on Friday, January 17th will be given a dividend of $1.42 per share. The ex-dividend date of this dividend is Friday, January 17th. This represents a $5.68 dividend on an annualized basis and a dividend yield of 2.21%. General Dynamics’s payout ratio is currently 43.26%.

General Dynamics declared that its Board of Directors has approved a share repurchase plan on Wednesday, December 4th that allows the company to repurchase 10,000,000 shares. This repurchase authorization allows the aerospace company to reacquire shares of its stock through open market purchases. Shares repurchase plans are usually a sign that the company’s board believes its stock is undervalued.

Wall Street Analyst Weigh In

Several equities analysts have recently commented on GD shares. Susquehanna reduced their target price on General Dynamics from $315.00 to $300.00 and set a “positive” rating for the company in a research note on Thursday. JPMorgan Chase & Co. dropped their price target on General Dynamics from $307.00 to $284.00 and set an “overweight” rating on the stock in a research report on Thursday. Sanford C. Bernstein cut their price objective on shares of General Dynamics from $343.00 to $331.00 and set a “market perform” rating on the stock in a research report on Thursday, October 24th. Citigroup upped their price objective on shares of General Dynamics from $354.00 to $360.00 and gave the stock a “buy” rating in a report on Tuesday, January 21st. Finally, Royal Bank of Canada lowered their price objective on shares of General Dynamics from $290.00 to $280.00 and set a “sector perform” rating on the stock in a research note on Thursday. One analyst has rated the stock with a sell rating, eleven have given a hold rating, eight have issued a buy rating and one has issued a strong buy rating to the stock. According to MarketBeat, the stock presently has an average rating of “Hold” and a consensus target price of $301.24.

Insider Buying and Selling

In other news, VP Christopher J. Brady sold 5,540 shares of the stock in a transaction dated Friday, November 22nd. The stock was sold at an average price of $280.91, for a total transaction of $1,556,241.40. Following the transaction, the vice president now owns 20,296 shares of the company’s stock, valued at approximately $5,701,349.36. This represents a 21.44 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. 1.52% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On General Dynamics

Institutional investors have recently modified their holdings of the company. Strategic Financial Concepts LLC bought a new stake in shares of General Dynamics in the fourth quarter valued at approximately $11,940,000. Allworth Financial LP grew its holdings in shares of General Dynamics by 4.3% in the 4th quarter. Allworth Financial LP now owns 26,755 shares of the aerospace company’s stock worth $7,193,000 after purchasing an additional 1,112 shares during the last quarter. Principal Securities Inc. increased its holdings in shares of General Dynamics by 37.6% during the fourth quarter. Principal Securities Inc. now owns 8,166 shares of the aerospace company’s stock worth $2,152,000 after buying an additional 2,233 shares in the last quarter. Beacon Capital Management LLC raised its position in General Dynamics by 31.9% in the 4th quarter. Beacon Capital Management LLC now owns 298 shares of the aerospace company’s stock valued at $79,000 after purchasing an additional 72 shares during the last quarter. Finally, Ellis Investment Partners LLC grew its holdings in shares of General Dynamics by 2.6% during the fourth quarter. Ellis Investment Partners LLC now owns 5,327 shares of the aerospace company’s stock worth $1,404,000 after purchasing an additional 134 shares during the last quarter. Institutional investors own 86.14% of the company’s stock.

General Dynamics Stock Up 2.2 %

The company has a debt-to-equity ratio of 0.32, a quick ratio of 0.80 and a current ratio of 1.32. The stock has a market cap of $70.65 billion, a price-to-earnings ratio of 19.57, a PEG ratio of 1.43 and a beta of 0.61. The firm’s 50-day simple moving average is $268.00 and its two-hundred day simple moving average is $287.23.

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.