Investment Management Corp of Ontario Increases Stake in General Dynamics Co.

Investment Management Corp of Ontario has significantly increased its investment in General Dynamics Co. (NYSE:GD) by 48.2% during the third quarter, as revealed in their latest filing with the Securities and Exchange Commission. After purchasing an additional 2,500 shares, the firm now holds a total of 7,690 shares of the aerospace giant. At the conclusion of the most recent quarter, Investment Management Corp of Ontario’s total stake in General Dynamics was valued at approximately $2,324,000.

Apart from Investment Management Corp of Ontario, several other institutional investors and hedge funds have also made moves regarding General Dynamics shares. For instance, Itau Unibanco Holding S.A. took a new position amounting to about $7,253,000 in the third quarter. HighTower Advisors LLC increased their holdings by 9.5%, bringing their total to 250,705 shares valued at $75,774,000 after acquiring an additional 21,805 shares within the same period. Furthermore, Hilltop Holdings Inc. saw a dramatic increase of 702.4% in their stake during the third quarter, now owning 16,698 shares worth $5,046,000 after purchasing 14,617 shares. Similarly, Chevy Chase Trust Holdings LLC increased their position by 11.3%, resulting in their ownership of 139,657 shares, valued at $42,204,000 after acquiring 14,149 additional shares. Lastly, ClearAlpha Technologies LP entered the scene by acquiring a new position in General Dynamics, estimated at approximately $299,000. Collectively, institutional investors now own 86.14% of the company's stock.

Recent Analyst Ratings and Price Targets

A number of investment analysts have recently updated their ratings and price targets for General Dynamics. For example, Susquehanna raised its price target from $333.00 to $352.00, giving the stock a “positive” rating in a research note released on October 17th. Morgan Stanley elevated their rating from “equal weight” to “overweight,” with a new price target of $345.00, up from $293.00 in their August report. Barclays also increased the price target to $330.00 from $325.00 and rated the stock as “overweight.” TD Cowen designated General Dynamics as a “strong-buy” in their report on October 8th. Additionally, Wells Fargo & Company lifted their target price from $317.00 to $322.00 with an “equal weight” rating, contributing to the overall positive sentiment among analysts. Currently, seven analysts rate the stock as a hold, eleven rate it as a buy, and one gives it a strong buy rating. According to MarketBeat, General Dynamics has an average rating of “Moderate Buy” with an average target price of $323.69.

General Dynamics Stock Overview

As of Thursday, General Dynamics stock opened at $277.66. The company boasts a debt-to-equity ratio of 0.32 and financial ratios indicating solid liquidity with a current ratio of 1.32 and a quick ratio of 0.80. The stock's recent performance shows a 50-day moving average of $296.50 and a 200-day moving average of $295.17. With a market cap of $76.35 billion, General Dynamics has a P/E ratio of 21.15 and a P/E/G ratio of 1.67. Over the past year, the stock has fluctuated between a low of $247.36 and a high of $316.90.

Latest Earnings and Dividend Information

General Dynamics reported its latest earnings results on October 23rd, revealing earnings per share of $3.35 for the quarter, which was below the consensus estimate of $3.48. The company's revenue for the quarter was $11.67 billion, slightly above the analysts’ expectations of $11.65 billion. General Dynamics recorded a net margin of 7.90% and a return on equity of 16.59%, reflecting a strong year-over-year revenue growth of 10.4%. In the same quarter last year, the company earned $3.04 per share. Analysts anticipate that General Dynamics will report an EPS of 13.98 for the current fiscal year.

Additionally, General Dynamics has recently declared a quarterly dividend, which is set to be paid on February 7th to shareholders of record on January 17th, amounting to $1.42 per share. This dividend translates to an annualized yield of 2.05% with a payout ratio of 43.26%.

Share Repurchase Initiatives

In a significant move, the Board of Directors of General Dynamics has approved a share repurchase program allowing the company to buy back 10,000,000 shares. This initiative often indicates that the company's board believes that its stock is undervalued in the marketplace.

Recent Insider Transactions

In related news, Vice President Christopher J. Brady sold 5,540 shares of General Dynamics stock on November 22nd, fetching an average stock price of $280.91, totaling over $1.55 million. This sale reflected a 21.44% reduction in his position. Following this transaction, Brady holds 20,296 shares valued at approximately $5.7 million. Moreover, Director Peter A. Wall sold 1,320 shares on September 16th at an average price of $308.05, amounting to around $406,626, representing a decrease of 26.87% in his holdings. Company insiders collectively own about 1.52% of the company's stock, indicating a modest level of insider ownership.

General Dynamics Overview

General Dynamics Corporation operates as a major player in the aerospace and defense sector with services spanning four core segments: Aerospace, Marine Systems, Combat Systems, and Technologies. The Aerospace segment focuses on producing business jets and providing related services, including maintenance, repair, aircraft management, and charter services.

Investment, Shares, Growth, Earnings, Dividends