Royal Bank of Canada Adjusts General Dynamics Price Target to $280.00

The Royal Bank of Canada has recently adjusted its price target for General Dynamics (NYSE:GD). In a report published on Thursday, the bank lowered its target from $290.00 to $280.00 and maintained a "sector perform" rating on the aerospace and defense company's stock. This new price target suggests a potential upside of 9.62% from the current stock price.

Recent Analyst Opinions

Other analysts have also made changes regarding General Dynamics. For instance, Vertical Research revised its rating from "buy" to "hold" and reduced its price target from $352.00 to $290.00. Similarly, Sanford C. Bernstein lowered its price objective from $343.00 to $331.00, opting for a "market perform" rating. Meanwhile, Susquehanna adjusted its target from $315.00 to $300.00, while Citigroup increased its target from $354.00 to $360.00, maintaining a "buy" rating. Finally, TD Cowen marked down its price target from $315.00 to $295.00.

Summary of Ratings

Analyst ratings on General Dynamics show a lack of consensus, with one analyst issuing a sell rating, eleven giving a hold rating, eight issuing buy ratings, and one indicating a strong buy. Data compiled from MarketBeat indicates that the stock holds an average rating of "Hold" with a consensus target price of $301.24.

General Dynamics Stock Performance

On Thursday, General Dynamics' shares increased by 1.6%, reaching $255.44 during midday trading. A total of 560,443 shares changed hands, which is below the average volume of 1,675,880 shares. The firm holds a market capitalization of $70.24 billion, a P/E ratio of 19.46, and a beta of 0.61. Over the last year, its shares have ranged from a low of $247.01 to a high of $316.90.

Company Earnings and Projections

General Dynamics recently announced its earnings results, reporting $4.15 earnings per share for the recent quarter, falling short of analyst expectations that anticipated earnings of $4.29. The company recorded a net margin of 7.90% and a return on equity of 16.59%. Analysts forecast that General Dynamics will achieve approximately $13.66 earnings per share throughout the current year.

Share Repurchase Announcement

In a separate announcement, General Dynamics revealed that its board has authorized a share buyback plan, allowing the company to repurchase up to 10 million shares. Share repurchase plans are often seen as a move by a company's board to signal that they believe the stock is undervalued.

Insider Trading Activity

In other news involving General Dynamics, Vice President Christopher J. Brady sold 5,540 shares of the company on November 22, at an average price of $280.91. Following this sale, he owns approximately 20,296 shares, valued at around $5.7 million. This trade is reported as a 21.44% decrease in his holdings and was disclosed to the SEC.

Institutional Ownership

Institutional investors appear active in adjusting their stakes in General Dynamics. Coston McIsaac & Partners increased its holding by 22.8% in the third quarter, while other firms such as Global X Japan Co. Ltd., Grove Bank & Trust, and Trueblood Wealth Management LLC also adjusted their positions. Overall, institutional investors hold roughly 86.14% of the stock.

About General Dynamics

General Dynamics Corporation operates as a major player in the aerospace and defense sector, with various segments including Aerospace, Marine Systems, Combat Systems, and Technologies. The Aerospace segment is known for producing business jets as well as providing essential services related to aircraft maintenance and operations.

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