Convergence Investment Partners LLC Grows Stake in RTX Corporation $RTX

Key Points

• Convergence Investment Partners increased its RTX stake by 178.7% in the first quarter, buying 11,487 additional shares and bringing its total holding to 17,916 shares worth about $3.46 million.
• RTX reported better-than-expected Q1 earnings, posting $1.78 EPS versus the $1.52 consensus and revenue of $22.08 billion, with revenue up 8.7% year over year.
• The company also announced a quarterly dividend of $0.73 per share, payable on September 3, while several recent wins in defense and commercial aerospace contracts continue to support its backlog and outlook.

Convergence Investment Partners LLC increased its position in shares of RTX Corporation (NYSE:RTX - Free Report) by 178.7% in the 1st quarter, according to the company in its most recent disclosure with the SEC. The fund owned 17,916 shares of the company's stock after purchasing an additional 11,487 shares during the quarter. Convergence Investment Partners LLC's holdings in RTX were worth $3,456,000 as of its most recent filing with the SEC.

Other hedge funds and other institutional investors have also made changes to their positions in the company. Norges Bank purchased a new position in shares of RTX during the 4th quarter worth approximately $3,167,626,000. Auto Owners Insurance Co boosted its stake in shares of RTX by 24,730.9% during the fourth quarter. Auto Owners Insurance Co now owns 10,102,956 shares of the company's stock valued at $1,852,882,000 after acquiring an additional 10,062,269 shares during the last quarter. Vanguard Group Inc. raised its stake in RTX by 1.8% in the 4th quarter. Vanguard Group Inc. now owns 124,986,171 shares of the company's stock valued at $22,922,464,000 after purchasing an additional 2,210,950 shares during the last quarter. Artisan Partners Limited Partnership grew its holdings in shares of RTX by 1,545.1% during the fourth quarter. Artisan Partners Limited Partnership now owns 1,723,710 shares of the company's stock worth $316,128,000 after buying an additional 1,618,933 shares in the last quarter. Finally, Amundi boosted its position in RTX by 49.1% during the fourth quarter. Amundi now owns 4,402,120 shares of the company's stock worth $807,349,000 after acquiring an additional 1,450,596 shares during the last quarter. Institutional investors and hedge funds own 86.50% of the company's stock.

RTX Trading Up 0.6%

RTX opened at $194.64 on Tuesday. The firm's fifty day moving average price is $184.95 and its 200 day moving average price is $191.74. The stock has a market capitalization of $262.12 billion, a PE ratio of 36.52, a P/E/G ratio of 2.65 and a beta of 0.30. RTX Corporation has a 12-month low of $143.56 and a 12-month high of $214.50. The company has a debt-to-equity ratio of 0.48, a current ratio of 1.02 and a quick ratio of 0.78.

RTX (NYSE:RTX - Get Free Report) last released its quarterly earnings data on Tuesday, April 21st. The company reported $1.78 EPS for the quarter, topping analysts' consensus estimates of $1.52 by $0.26. RTX had a net margin of 8.03% and a return on equity of 13.50%. The firm had revenue of $22.08 billion during the quarter, compared to the consensus estimate of $21.38 billion. During the same quarter in the previous year, the company posted $1.47 earnings per share. The firm's revenue was up 8.7% on a year-over-year basis. As a group, research analysts expect that RTX Corporation will post 6.92 EPS for the current fiscal year.

RTX Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, September 3rd. Stockholders of record on Friday, August 14th will be given a dividend of $0.73 per share. The ex-dividend date is Friday, August 14th. This represents a $2.92 annualized dividend and a dividend yield of 1.5%. RTX's dividend payout ratio is currently 54.78%.

Key Stories Impacting RTX

Here are the key news stories impacting RTX this week:

• Positive Sentiment: Pratt & Whitney won a nine-year, $1 billion sustainment contract to overhaul more than 750 PT6A-68 engines for the U.S. JPATS T-6 trainer fleet, adding to RTX’s long-term defense revenue visibility. Article Title
• Positive Sentiment: British Airways selected RTX’s Pratt & Whitney GTF engines to power up to 63 Airbus A320neo aircraft, including a 12-year maintenance agreement, boosting the outlook for RTX’s commercial engines and services backlog. Article Title
• Positive Sentiment: Jackson Square Aviation also chose Pratt & Whitney GTF engines for an undisclosed number of Airbus A320neo jets, reinforcing demand for RTX’s geared-turbofan platform at the Farnborough Airshow. Article Title
• Positive Sentiment: Pratt & Whitney completed successful testing of its 3D-printed TJ150 engine, highlighting manufacturing innovation and potential efficiency gains. Article Title
• Neutral Sentiment: Analysts are reviewing RTX’s Q2 metric projections ahead of earnings, which keeps attention on whether the company can match or exceed expectations. Article Title
• Neutral Sentiment: RTX was mentioned as one of several drone-tech names to watch as adoption rises, but the piece is more sector-focused than a direct company-specific catalyst. Article Title
• Positive Sentiment: RTX also picked up additional attention from Boeing/Airbus Farnborough deal activity, which underscores a healthy commercial aerospace backdrop for its engine business. Article Title

Analyst Upgrades and Downgrades

RTX has been the subject of a number of recent analyst reports. Wells Fargo & Company initiated coverage on RTX in a research report on Wednesday, April 1st. They issued an "equal weight" rating and a $200.00 price objective for the company. Weiss Ratings cut shares of RTX from a "buy (b)" rating to a "buy (b-)" rating in a research report on Thursday, June 11th. UBS Group dropped their price target on shares of RTX from $209.00 to $199.00 and set a "neutral" rating for the company in a research report on Wednesday, April 22nd. Erste Group Bank lowered shares of RTX from a "buy" rating to a "hold" rating in a report on Monday, April 27th. Finally, Jefferies Financial Group reiterated a "buy" rating on shares of RTX in a report on Wednesday, July 8th. One research analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, RTX currently has an average rating of "Moderate Buy" and a consensus price target of $211.38.

RTX Company Profile

RTX NYSE: RTX is a U.S.-based aerospace and defense company that designs, manufactures and services advanced systems for commercial, military and governmental customers worldwide. The company was created through the 2020 combination of Raytheon Company and United Technologies Corporation and later adopted the RTX name, positioning itself as a diversified provider across the aerospace and defense value chain.

RTX's operations span a broad set of capabilities. Its commercial aerospace businesses include Pratt & Whitney aircraft engines and Collins Aerospace systems, which supply propulsion, avionics, aerostructures, interiors and integrated aircraft systems.

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