Is General Dynamics Corporation (GD) A Good Stock To Buy?

Judging by the fact that General Dynamics Corporation (NYSE:GD) has witnessed declining sentiment from the entirety of the hedge funds we track, it’s easy to see that there is a sect of fund managers that elected to cut their full holdings by the end of the third quarter. At the top of the heap, Jean-Marie Eveillard’s First Eagle Investment Management sold off the biggest position of all the hedgies tracked by Insider Monkey, worth about $126.2 million in stock, and Jim Simons’ Renaissance Technologies was right behind this move, as the fund said goodbye to about $118.7 million worth. These transactions are interesting, as total hedge fund interest fell by 11 funds by the end of the third quarter.

Let’s go over hedge fund activity in other stocks similar to General Dynamics Corporation (NYSE:GD). We will take a look at General Mills, Inc. (NYSE:GIS), McKesson Corporation (NYSE:MCK), Automatic Data Processing (NASDAQ:ADP), and The Bank of New York Mellon Corporation (NYSE:BK). This group of stocks’ market values are closest to GD’s market value.

As you can see these stocks had an average of 42.75 hedge funds with bullish positions and the average amount invested in these stocks was $1.61 billion. That figure was $7.2 billion in GD’s case. McKesson Corporation (NYSE:MCK) is the most popular stock in this table. On the other hand Automatic Data Processing (NASDAQ:ADP) is the least popular one with only 32 bullish hedge fund positions. General Dynamics Corporation (NYSE:GD) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard MCK might be a better candidate to consider a long position.