General Dynamics reported this morning that it has received a $188.8 million work order from Force Protection to make 401 vehicles for the Marine Corps' mine-resistant ambush-protected vehicle program. Force Protection previously received a $376.6 million contract to produce 800 vehicles for the program. Despite the development, GD shares are lower by about 1%, while FRPT is adding to Friday's plunge, dropping about 3.5% so far today.
Both stocks have breached their 10-day and 20-day moving averages due to the heavy selling pressure on the broad market recently; however, the equities' 50-day moving averages are holding firm - especially in FRPT's case. GD, meanwhile, has the added benefit of technical support in the 84 region, while FRPT is clinging to the 19 level.
Sentiment for GD is neutral-to-bullish, which could be a boon for the stock as bears begin to unwind their positions. The stock's Schaeffer's put/call open interest ratio (SOIR) of 0.55 ranks above 63% of all those taken during the past year. Meanwhile, FRPT's short-to-float ratio rests at more than 26.6%. This wealth of short interest could provide ample short-covering fuel should the stock rebound from support in the 19 region.