BlackRock Increases Position in General Dynamics (GD)

Fintel reports that BlackRock has filed a 13G form with the SEC disclosing ownership of 15.79MM shares of General Dynamics Corporation (GD). This represents 5.7% of the company.

In their previous filing dated August 7, 2020 they reported 14.24MM shares and 4.96% of the company, an increase in shares of 10.86% and an increase in total ownership of 0.74% (calculated as current - previous percent ownership).

Analyst Price Forecast Suggests 21.74% Upside

As of February 2, 2023, the average one-year price target for General Dynamics is $281.72. The forecasts range from a low of $229.27 to a high of $341.25. The average price target represents an increase of 21.74% from its latest reported closing price of $231.41.

The projected annual revenue for General Dynamics is $43,301MM, an increase of 9.88%. The projected annual EPS is $14.43, an increase of 17.19%.

Fund Sentiment

There are 2383 funds or institutions reporting positions in General Dynamics. This is a decrease of 41 owner(s) or 1.69%.

Average portfolio weight of all funds dedicated to US:GD is 0.4641%, an increase of 0.3191%. Total shares owned by institutions increased in the last three months by 0.49% to 279,472K shares.

What are large shareholders doing?

GD / General Dynamics Corporation Ownership

Longview Asset Management holds 30,042,504 shares representing 10.97% ownership of the company. No change in the last quarter.

Newport Trust holds 16,469,472 shares representing 6.01% ownership of the company. In it's prior filing, the firm reported owning 16,782,035 shares, representing a decrease of 1.90%. The firm decreased its portfolio allocation in GD by 20.69% over the last quarter.

Wellington Management Group Llp holds 14,912,897 shares representing 5.45% ownership of the company. In it's prior filing, the firm reported owning 15,254,652 shares, representing a decrease of 2.29%. The firm decreased its portfolio allocation in GD by 0.85% over the last quarter.

Capital Research Global Investors holds 10,583,539 shares representing 3.86% ownership of the company. In it's prior filing, the firm reported owning 10,315,299 shares, representing an increase of 2.53%. The firm increased its portfolio allocation in GD by 3.78% over the last quarter.

Bank Of America holds 9,835,280 shares representing 3.59% ownership of the company. In it's prior filing, the firm reported owning 9,419,653 shares, representing an increase of 4.23%. The firm decreased its portfolio allocation in GD by 73.41% over the last quarter.

General Dynamics Declares $1.26 Dividend

General Dynamics said on December 7, 2022 that its board of directors declared a regular quarterly dividend of $1.26 per share ($5.04 annualized). Shareholders of record as of January 19, 2023 will receive the payment on February 10, 2023. Previously, the company paid $1.26 per share.

At the current share price of $231.41 / share, the stock's dividend yield is 2.18%. Looking back five years and taking a sample every week, the average dividend yield has been 2.37%, the lowest has been 1.48%, and the highest has been 4.13%. The standard deviation of yields is 0.42 (n=237).

The current dividend yield is 0.45 standard deviations below the historical average.

Additionally, the company's dividend payout ratio is 0.41. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.

The company's 3-Year dividend growth rate is 0.24%, demonstrating that it has increased its dividend over time.

General Dynamics Background Information
(This description is provided by the company.)

Headquartered in Reston, Virginia, General Dynamics is a global aerospace and defense company that offers a broad portfolio of products and services in business aviation; ship construction and repair; land combat vehicles, weapons systems and munitions; and technology products and services. General Dynamics employs more than 100,000 people worldwide and generated $37.9 billion in revenue in 2020.

This story originally appeared on Fintel.

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


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