The stock price of General Dynamics Corp (NYSE: GD) has plunged by -6.88 when compared to previous closing price of 314.03, but the company has seen a -4.44% decline in its stock price over the last five trading sessions. seekingalpha.com reported 2024-11-11 that General Dynamics benefits from geopolitical tensions, strong order backlogs, and robust financials, making it a strategic long-term defense investment. Despite the high valuation, GD’s double-digit EPS growth and dependable dividend growth support a Buy rating. Short-term headwinds like Gulfstream G700 delivery issues and supply chain challenges exist but are manageable.
Is It Worth Investing in General Dynamics Corp (NYSE: GD) Right Now?
General Dynamics Corp (NYSE: GD) has a higher price-to-earnings ratio of 22.27x compared to its average ratio. GD has 36-month beta value of 0.62. Analysts have mixed views on the stock, with 7 analysts rating it as a “buy,” 8 as “overweight,” 6 as “hold,” and 1 as “sell.”
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The public float for GD is 273.23M, and currently, short sellers hold a 1.13% ratio of that float. The average trading volume of GD on November 15, 2024 was 1.15M shares.
GD’s Market Performance
GD’s stock has seen a -4.44% decrease for the week, with a -4.08% drop in the past month and a -1.41% fall in the past quarter. The volatility ratio for the week is 2.76%, and the volatility levels for the past 30 days are at 1.80% for General Dynamics Corp The simple moving average for the last 20 days is -3.63% for GD stock, with a simple moving average of 0.52% for the last 200 days.
Analysts’ Opinion of GD
Wells Fargo, on the other hand, stated in their research note that they expect to see GD reach a price target of $317, previously predicting the price at $334. The rating they have provided for GD stocks is “Equal Weight” according to the report published on October 01st, 2024.
Morgan Stanley gave a rating of “Overweight” to GD, setting the target price at $345 in the report published on August 09th of the current year.
GD Trading at -3.34% 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 -7.72% of loss for the given period.
Volatility was left at 1.80%, however, over the last 30 days, the volatility rate increased by 2.76%, as shares sank -5.13% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -1.64% lower at present.
During the last 5 trading sessions, GD fell by -4.44%, which changed the moving average for the period of 200-days by +10.35% in comparison to the 20-day moving average, which settled at $303.45. In addition, General Dynamics Corp saw 12.61% 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 Wall Peter A, who sale 1,320 shares at the price of $308.05 back on Sep 16 ’24. After this action, Wall Peter A now owns 3,592 shares of General Dynamics Corp, valued at $406,626 using the latest closing price.
Wall Peter A, the Director of General Dynamics Corp, proposed sale 1,320 shares at $308.05 during a trade that took place back on Sep 16 ’24, which means that Wall Peter A is holding shares at $406,626 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 0.12. Equity return is now at value 16.95, with 6.57 for asset returns.
Based on General Dynamics Corp (GD), the company’s capital structure generated 0.29 points at debt to capital in total, while cash flow to debt ratio is standing at 0.34. The debt to equity ratio resting at 0.4. The interest coverage ratio of the stock is 59.76.
Currently, EBITDA for the company is 5.25 billion with net debt to EBITDA at 1.71. When we switch over and look at the enterprise to sales, we see a ratio of 1.94. The receivables turnover for the company is 3.83for trailing twelve months and the total asset turnover is 0.8. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.32.
Conclusion
To put it simply, General Dynamics Corp (GD) has had a mixed performance in recent times. Analysts have a bullish opinion on the stock, with some rating it as a “buy” and others as a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
