Buying General Dynamics Corporation (GD) Stock Is A Smart Move Today?

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General Dynamics Corporation (NYSE:GD) finished Friday with a subtraction of -$1.12 to close at $248.11, a downside of -0.45 percent. An average of 548,100 shares of common stock have been traded in the last five days. There was a gain of $1.52 in the past week, and it reached a new high 15 times over the past 12 months. The last 20 days have seen an average of 844,635 shares traded, while the 50-day average volume stands at 982,622.

GD stock has decreased by -1.70% in the last month. The company shares reached their 1-month lowest point of $241.92 on 12/15/22. With the stock rallying to its 52-week high on 12/02/22, shares of the company touched a low of $200.65 and a high of $256.86 in 52 weeks. It has reached a new high 14 times so far this year and achieved 19.01% or $39.64 in price. In spite of this, the price is down -3.41% from the 52-week high.

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Insider Transactions

GD stock investors should be aware that General Dynamics Corporation (GD) stock had its last reported insider trading activity 138 days ago on Aug 15. In this transaction, the insider spent $5,686,750. Chairman and CEO, NOVAKOVIC PHEBE N, disposed of 71,461 shares at a price of $227.05 on Aug 09. The insider now owns more than $16,225,240 worth of shares. Prior to that, Senior VP, Gen. Counsel, Sec. Gallopoulos Gregory S went on to Sale 11,126 shares at $227.68 each on Aug 01. An amount of $2,533,168 was transacted.

Valuation Metrics

General Dynamics Corporation (GD) has a trailing price-to-earnings (P/E) ratio of 20.66. The stock’s beta is 0.87. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 1.74, the price-to-book (PB) ratio at 3.85, and the price-to-cash flow ratio at 20.86.

The company has a payout ratio of 20.20%. The company’s most recent quarterly dividend payment was $1.26 a share, without any change from last year. Its latest increase dividend $0.07 reported on Wednesday March 2 2022.

Financial Health

The quick ratio of General Dynamics Corporation for the three months ended September 29 was 0.90, and the current ratio was 1.30, indicating that the company is not able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.52 and a total debt to equity ratio of 0.65 for the quarter ending September 29. Its gross profit as reported stood at $6.41 billion compared to revenue of $38.47 billion.

Earnings Surprise

For the three-month period that ended September 29, General Dynamics Corporation had $9.24 billion in total debt. In the quarter under review, the net income was up than the previous quarter. The company posted a net income of $902.0 million in the quarter, while revenues were grew 4.66%. The analyst consensus anticipated General Dynamics Corporation’s latest quarter earnings to come in at $3.15 per share, but it turned out to be $3.26, a 3.50% surprise. For the quarter, EBITDA amounted to $1.32 billion. Shareholders own equity worth $274.55 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at General Dynamics Corporation (GD) price momentum. RSI 9-day as of the close on 30 December was 50.26%, suggesting the stock is Neutral, with historical volatility in this time frame at 13.98%.

As of today, GD’s price is $248.19 +0.62% or $1.52 from its 5-day moving average. GD is currently trading -1.65% lower than its 20-day SMA and +9.00% higher than its 100-day SMA. However, the stock’s current price level is +3.65% above the SMA50 and +8.97% above the SMA200.

The stochastic %K and %D were 51.44% and 51.38%, respectively, and the average true range (ATR) was 4.27. With the 14-day stochastic at 51.50% and the average true range at 4.37, the RSI (14) stands at 50.69%. The stock has reached 0.50 on the 9-day MACD Oscillator while the 14-day reading was at 0.45.

Analyst Ratings

Citigroup launched coverage on General Dynamics Corporation (NYSE: GD) in its analyst report released on December 08, 2022. The firm assigned the stock a Buy rating. The consensus rating for General Dynamics Corporation (GD) among analysts is Overweight. According to current brokerage recommendations, 0 brokerage firms advise that investors sell GD, while 8 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 2 analysts, while 13 others rate it as a “buy”.

What is GD’s price target for the next 12 months?

Analysts predict a range of price targets between $227.00 and $325.00, with a median target of $275.00. Taking a look at these predictions, the average price target given by analysts for General Dynamics Corporation (GD) stock is $275.21.

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