RTX (NYSE:RTX) Shares Climb 3.6% - Time to Buy?

Key Points

• RTX shares rose 3.6% to about $196.35, while trading volume was 28% below its average.
• Quarterly results beat estimates: EPS was $2.26 versus $1.78 expected, and revenue of $24.96 billion was up 11.1% year over year. Analysts’ consensus rating is “Moderate Buy,” with an average price target of $231.24.
• Raytheon completed its third successful flight test of the Army’s DeepStrike JR3 training system, a program milestone; the announcement included no contract award or revenue outlook.

Shares of RTX Corporation (NYSE:RTX - Get Free Report) traded up 3.6% during trading on Monday. The company traded as high as $197.00 and last traded at $196.3480. Approximately 3,902,087 shares traded hands during trading, a decline of 28% from the average daily volume of 5,394,537 shares. The stock had previously closed at $189.53.

Key RTX News

Here are the key news stories impacting RTX this week:

• Positive Sentiment: Raytheon, an RTX business, completed its third successful flight test of the DeepStrike JR3 system for the U.S. Army’s Joint Reduced Range Rocket program. The test demonstrated a reusable pod and an affordable training round for a system intended to replace the Army’s existing practice rocket—progress that may strengthen Raytheon’s position as the Army addresses training needs. RTX Raytheon flight test announcement
• Neutral Sentiment: The announcement is a development milestone, not a disclosed contract award; the articles provide no new financial guidance or estimate of the program’s potential revenue. Most other headlines supplied concern Nvidia graphics cards and are unrelated to RTX Corporation.

Analyst Upgrades and Downgrades

A number of research analysts recently weighed in on the stock. TD Cowen decreased their price target on shares of RTX from $240.00 to $225.00 and set a "buy" rating on the stock in a research note on Friday, October 9th. Argus set a $245.00 price objective on RTX and gave the stock a "buy" rating in a research note on Thursday, July 30th. Jefferies Financial Group set a $250.00 target price on RTX and gave the company a "buy" rating in a report on Sunday, July 26th. The Goldman Sachs Group raised their target price on RTX from $195.00 to $206.00 and gave the company a "neutral" rating in a research report on Monday, July 27th. Finally, Morgan Stanley reaffirmed an "overweight" rating and issued a $240.00 price target (up from $220.00) on shares of RTX in a research note on Friday, July 24th. One equities research analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating, eight have given a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $231.24.

RTX Stock Up 3.6%

The firm has a market capitalization of $264.96 billion, a PE ratio of 31.87, a price-to-earnings-growth ratio of 2.11 and a beta of 0.30. The business has a 50-day moving average price of $193.46 and a 200-day moving average price of $195.52. The company has a quick ratio of 0.81, a current ratio of 1.05 and a debt-to-equity ratio of 0.44.

RTX (NYSE:RTX - Get Free Report) last announced its quarterly earnings results on Tuesday, October 20th. The company reported $2.26 earnings per share for the quarter, beating the consensus estimate of $1.78 by $0.48. The firm had revenue of $24.96 billion for the quarter, compared to analysts' expectations of $24.11 billion. RTX had a net margin of 8.75% and a return on equity of 14.89%. The company's revenue was up 11.1% compared to the same quarter last year. During the same quarter in the previous year, the company posted $1.70 EPS. Equities research analysts forecast that RTX Corporation will post 7.68 earnings per share for the current fiscal year.

RTX Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, December 10th. Shareholders of record on Friday, November 20th will be paid a dividend of $0.73 per share. The ex-dividend date of this dividend is Friday, November 20th. This represents a $2.92 annualized dividend and a yield of 1.5%. RTX's dividend payout ratio (DPR) is 47.40%.

Insiders Place Their Bets

In other news, EVP Ramsaran Maharajh sold 13,655 shares of the stock in a transaction on Tuesday, August 18th. The stock was sold at an average price of $223.92, for a total transaction of $3,057,627.60. Following the completion of the transaction, the executive vice president directly owned 13,184 shares in the company, valued at approximately $2,952,161.28. This represents a 50.88% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, EVP Dantaya M. Williams sold 9,071 shares of the firm's stock in a transaction dated Friday, October 30th. The stock was sold at an average price of $201.70, for a total value of $1,829,620.70. Following the sale, the executive vice president directly owned 16,930 shares of the company's stock, valued at $3,414,781. The trade was a 34.89% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 0.10% of the stock is owned by insiders.

Hedge Funds Weigh In On RTX

Several large investors have recently made changes to their positions in the stock. Fortress Financial Group LLC purchased a new stake in shares of RTX in the second quarter valued at $358,000. Evergreen Advisors LLC purchased a new stake in RTX during the 1st quarter worth about $31,000. Signature Resources Capital Management LLC increased its position in RTX by 111.5% during the 1st quarter. Signature Resources Capital Management LLC now owns 184 shares of the company's stock worth $36,000 after purchasing an additional 97 shares in the last quarter. BOK Financial Private Wealth Inc. acquired a new position in RTX in the 2nd quarter valued at about $36,000. Finally, Next Level Wealth Planning LLC acquired a new position in RTX in the 3rd quarter valued at about $41,000. 86.50% of the stock is currently owned by institutional investors and hedge funds.

About RTX

RTX Corporation is an aerospace and defense company whose businesses include Collins Aerospace, Pratt & Whitney and Raytheon. The company serves commercial aviation, military and government customers around the world.

Collins Aerospace develops aircraft systems and components, including avionics, communications, flight controls and cabin equipment. Pratt & Whitney designs and manufactures aircraft engines and provides related maintenance services. Raytheon develops defense systems and technologies, including air and missile defense, sensors and precision weapons.

RTX was formed in 2020 through the combination of Raytheon Company and United Technologies Corporation.

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