An aerospace and defense stock that insiders are snapping up here is General Dynamics (GD), which offers a broad portfolio of products and services in business aviation; combat vehicles, weapons systems and munitions; military and commercial shipbuilding; and communications and information technology. Insiders are buying this stock into modest strength, since shares are up 4.6% in the last six months.
General Dynamics has a market cap of $23.35 billion and an enterprise value of $23.65 billion. This stock trades at a cheap valuation, with a forward price-to-earnings of 9.16. Its estimated growth rate for this year is 5.4%, and for next year it's pegged at 5.6%. This is not a cash-rich company, since the total cash position on its balance sheet is $3.30 billion and its total debt is $3.91 billion.A director just bought 5,000 shares, or about $332,000 worth of stock, at $66.47 per share. From a technical perspective, GD is currently trending above its 200-day moving average and below its 50-day moving average, which is neutral trendwise. This stock recently sold off hard, with shares dropping from its recent high of $72.01 to its low of $64.47 a share. During that selloff, shares of GD were consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of GD have started to rebound off that $64.47 low and its moving back above its 200-day moving average at $65.53 a share. Traders who are bullish on GD should now look for long-biased trades as long as it's trending above its 200-day at $65.53, and then once it manages to break out above some near-term overhead resistance at $67 a share with high volume. Look for a sustained move or close above $67 with volume that hits near or above its three-month average action of 2.2 million shares. If that breakout hits soon, then GD will set up to re-test or possibly take out its 50-day moving average of $68.58 a share. Any high-volume move above its 50-day will put $70 to $71 into range for shares of GD.
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