Chesapeake Wealth Management Trims Stake in General Dynamics Co. (NYSE:GD)

Chesapeake Wealth Management reduced its position in General Dynamics Co. (NYSE:GD) by 2.5% in the fourth quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 3,717 shares of the aerospace company’s stock after selling 95 shares during the quarter. Chesapeake Wealth Management’s holdings in General Dynamics were worth $979,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also recently modified their holdings of the company. Coston McIsaac & Partners boosted its holdings in shares of General Dynamics by 22.8% in the 3rd quarter. Coston McIsaac & Partners now owns 178 shares of the aerospace company’s stock worth $53,000 after purchasing an additional 33 shares in the last quarter. Global X Japan Co. Ltd. boosted its holdings in shares of General Dynamics by 2.3% in the 3rd quarter. Global X Japan Co. Ltd. now owns 1,482 shares of the aerospace company’s stock worth $448,000 after purchasing an additional 33 shares in the last quarter. Grove Bank & Trust boosted its holdings in shares of General Dynamics by 10.6% in the 3rd quarter. Grove Bank & Trust now owns 354 shares of the aerospace company’s stock worth $107,000 after purchasing an additional 34 shares in the last quarter. Trueblood Wealth Management LLC boosted its holdings in shares of General Dynamics by 1.6% in the 3rd quarter. Trueblood Wealth Management LLC now owns 2,223 shares of the aerospace company’s stock worth $672,000 after purchasing an additional 34 shares in the last quarter. Finally, Jeppson Wealth Management LLC boosted its holdings in shares of General Dynamics by 3.8% in the 3rd quarter. Jeppson Wealth Management LLC now owns 955 shares of the aerospace company’s stock worth $289,000 after purchasing an additional 35 shares in the last quarter. 86.14% of the stock is currently owned by hedge funds and other institutional investors.

General Dynamics Stock Down 0.7 %

Shares of NYSE:GD opened at $266.86 on Tuesday. General Dynamics Co. has a 52-week low of $247.36 and a 52-week high of $316.90. The firm has a market capitalization of $73.38 billion, a P/E ratio of 20.32, a P/E/G ratio of 1.41 and a beta of 0.61. The stock has a 50 day moving average price of $272.86 and a 200-day moving average price of $288.21. The company has a debt-to-equity ratio of 0.32, a quick ratio of 0.80 and a current ratio of 1.32.

General Dynamics (NYSE:GD) last announced its earnings results on Wednesday, October 23rd. The aerospace company reported $3.35 earnings per share (EPS) for the quarter, missing the consensus estimate of $3.48 by ($0.13). General Dynamics had a return on equity of 16.59% and a net margin of 7.90%. The firm had revenue of $11.67 billion during the quarter, compared to the consensus estimate of $11.65 billion. During the same period in the prior year, the company posted $3.04 EPS. The firm’s revenue was up 10.4% on a year-over-year basis. As a group, equities research analysts anticipate that General Dynamics Co. will post 13.81 EPS for the current fiscal year.

General Dynamics announced that its board has authorized a stock repurchase program on Wednesday, December 4th that authorizes the company to repurchase 10,000,000 outstanding shares. This repurchase authorization authorizes the aerospace company to reacquire shares of its stock through open market purchases. Stock repurchase programs are often a sign that the company’s leadership believes its stock is undervalued.

General Dynamics Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, February 7th. Investors of record on Friday, January 17th will be paid a $1.42 dividend. The ex-dividend date is Friday, January 17th. This represents a $5.68 annualized dividend and a dividend yield of 2.13%. General Dynamics’s payout ratio is currently 43.26%.

Insider Buying and Selling

In related news, VP Christopher J. Brady sold 5,540 shares of the company’s stock in a transaction that occurred on Friday, November 22nd. The stock was sold at an average price of $280.91, for a total value of $1,556,241.40. Following the sale, the vice president now owns 20,296 shares in the company, valued at $5,701,349.36. This represents a 21.44 % decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. 1.60% of the stock is currently owned by company insiders.

Wall Street Analyst Weigh In

Several equities research analysts recently weighed in on the company. Barclays dropped their target price on General Dynamics from $330.00 to $305.00 and set an “overweight” rating for the company in a report on Monday, January 6th. Robert W. Baird restated a “neutral” rating and set a $283.00 target price (down from $345.00) on shares of General Dynamics in a report on Tuesday, January 14th. The Goldman Sachs Group cut General Dynamics from a “neutral” rating to a “sell” rating and dropped their target price for the company from $283.00 to $245.00 in a report on Thursday, December 12th. Jefferies Financial Group restated a “hold” rating and set a $300.00 target price (down from $345.00) on shares of General Dynamics in a report on Thursday, December 12th. Finally, Vertical Research cut General Dynamics from a “buy” rating to a “hold” rating and dropped their target price for the company from $352.00 to $290.00 in a report on Monday, January 6th. One investment analyst has rated the stock with a sell rating, twelve have assigned a hold rating, eight have given a buy rating and one has issued a strong buy rating to the company. According to MarketBeat.com, the stock has an average rating of “Hold” and a consensus target price of $304.53.

General Dynamics Profile

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.