General Dynamics Corp. (NYSE: GD)’s stock price has gone decline by -0.88 in comparison to its previous close of 290.04, however, the company has experienced a -1.95% decrease in its stock price over the last five trading days. Zacks Investment Research reported 2024-04-09 that General Dynamics (GD) is the sole-source producer of two foundational products central to the U.S. Army’s warfighting capabilities ??? the Abrams main battle tank and the Stryker wheeled combat vehicle.
Is It Worth Investing in General Dynamics Corp. (NYSE: GD) Right Now?
The price-to-earnings ratio for General Dynamics Corp. (NYSE: GD) is 23.90x, which is above its average ratio. Moreover, the 36-month beta value for GD is 0.67. Analysts have varying opinions on the stock, with 7 analysts rating it as a “buy,” 8 as “overweight,” 6 as “hold,” and 1 as “sell.”
The public float for GD is 272.18M and currently, short sellers hold a 0.55% of that float. On April 12, 2024, GD’s average trading volume was 1.07M shares.
GD’s Market Performance
GD stock saw an increase of -1.95% in the past week, with a monthly gain of 4.68% and a quarterly increase of 14.43%. The volatility ratio for the week is 1.50%, and the volatility levels for the last 30 days are 1.18% for General Dynamics Corp. (GD). The simple moving average for the last 20 days is 1.16% for GD’s stock, with a simple moving average of 17.30% for the last 200 days.
Analysts’ Opinion of GD
Many brokerage firms have already submitted their reports for GD stocks, with Alembic Global Advisors repeating the rating for GD by listing it as a “Neutral.” The predicted price for GD in the upcoming period, according to Alembic Global Advisors is $296 based on the research report published on January 29, 2024 of the current year 2024.
UBS, on the other hand, stated in their research note that they expect to see GD reach a price target of $265. The rating they have provided for GD stocks is “Neutral” according to the report published on October 11th, 2023.
Deutsche Bank gave a rating of “Buy” to GD, setting the target price at $271 in the report published on September 28th of the previous year.
GD Trading at 4.13% from the 50-Day Moving Average
After a stumble in the market that brought GD to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -3.04% of loss for the given period.
Volatility was left at 1.18%, however, over the last 30 days, the volatility rate increased by 1.50%, as shares surge +4.41% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +7.01% upper at present.
During the last 5 trading sessions, GD fell by -1.95%, which changed the moving average for the period of 200-days by +35.56% in comparison to the 20-day moving average, which settled at $284.82. In addition, General Dynamics Corp. saw 10.72% in overturn over a single year, with a tendency to cut further gains.
Insider Trading
Reports are indicating that there were more than several insider trading activities at GD starting from NOVAKOVIC PHEBE N, who sale 32,355 shares at the price of $264.31 back on Jan 29 ’24. After this action, NOVAKOVIC PHEBE N now owns 773,977 shares of General Dynamics Corp., valued at $8,551,758 using the latest closing price.
Roualet Mark C., the Executive Vice President of General Dynamics Corp., sale 73,330 shares at $264.75 during a trade that took place back on Jan 26 ’24, which means that Roualet Mark C. is holding 149,205 shares at $19,414,094 based on the most recent closing price.
Stock Fundamentals for GD
Current profitability levels for the company are sitting at:
- 0.1 for the present operating margin
- 0.16 for the gross margin
The net margin for General Dynamics Corp. stands at 0.08. The total capital return value is set at 0.11. Equity return is now at value 16.63, with 6.23 for asset returns.
Based on General Dynamics Corp. (GD), the company’s capital structure generated 0.34 points at debt to capital in total, while cash flow to debt ratio is standing at 0.42. The debt to equity ratio resting at 0.52. The interest coverage ratio of the stock is 13.69.
Currently, EBITDA for the company is 5.25 billion with net debt to EBITDA at 1.75. When we switch over and look at the enterprise to sales, we see a ratio of 2.08. The receivables turnover for the company is 3.84for trailing twelve months and the total asset turnover is 0.77. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.44.
Conclusion
To wrap up, the performance of General Dynamics Corp. (GD) has been better in recent times. The stock has received a bullish of “buy” and “hold” ratings from analysts. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.
