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Grab This Bargain Even Cheaper Than Director Reynolds Did


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There's an old saying on Wall Street about insider buying: there are many possible reasons to sell a stock, but only one reason to buy. Back on December 7, General Dynamics Corp's Director, Catherine B. Reynolds, invested $100,585.14 into 600 shares of GD, for a cost per share of $167.64. Bargain hunters tend to pay particular attention to insider buys like this one, because presumably the only reason an insider would take their hard-earned cash and use it to buy stock of their company in the open market, is that they expect to make money. In trading on Thursday, bargain hunters could buy shares of General Dynamics Corp (Symbol: GD) and achieve a cost basis even cheaper than Reynolds, with shares changing hands as low as $167.17 per share. It should be noted that Reynolds has collected $1.95/share in dividends since the time of their purchase, so they are currently up 0.9% on their purchase from a total return basis. General Dynamics Corp shares are currently trading up about 0.4% on the day. The chart below shows the one year performance of GD shares, versus its 200 day moving average:

General Dynamics Corp Chart

Looking at the chart above, GD's low point in its 52 week range is $143.87 per share, with $208.88 as the 52 week high point - that compares with a last trade of $169.64. By comparison, below is a table showing the prices at which GD insider buying was recorded over the last six months:

PurchasedInsiderTitleSharesPrice/ShareValue
12/07/2018Catherine B. ReynoldsDirector600$167.64$100,585.14

The current annualized dividend paid by General Dynamics Corp is $4.08/share, currently paid in quarterly installments, and its most recent dividend ex-date was on 04/11/2019. Below is a long-term dividend history chart for GD, which can be of good help in judging whether the most recent dividend with approx. 2.4% annualized yield is likely to continue.

GD+Dividend+History+Chart

Click here to find out which 9 other dividend bargains you can buy cheaper than insiders ยป



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.





This article appears in: Investing , Stocks
Referenced Symbols: GD



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