RTX (NYSE:RTX) Shares Cross Below 200 Day Moving Average - Should You Sell?

Key Points

• RTX shares fell below their 200-day moving average, trading as low as $190.10 versus the $195.56 average and last changing hands at about $191.97.
• The company recently beat quarterly earnings and revenue estimates, with revenue up 11.1% year over year. Analysts’ consensus rating is “Moderate Buy,” with an average price target of $231.24.
• Raytheon won an early-stage DARPA contract, while defense demand and a large backlog support the outlook; however, uncertainty around future defense spending could weigh on contract growth.

RTX Corporation (NYSE:RTX - Get Free Report) shares passed below its two hundred day moving average during trading on Thursday. The stock has a two hundred day moving average of $195.56 and traded as low as $190.10. RTX shares last traded at $191.9670, with a volume of 7,141,412 shares changing hands.

Key Headlines Impacting RTX

Here are the key news stories impacting RTX this week:

• Positive Sentiment: Raytheon won a phase-one DARPA contract to develop optical signal processing technology aimed at helping military operators detect and respond to threats faster. It adds to RTX’s defense technology pipeline, though the initial award is an early-stage contract. Article: RTX's Raytheon wins DARPA contract
• Positive Sentiment: A commentary pointed to longer-term demand for RTX’s Patriot systems, radars, and interceptors, alongside manufacturing investments to expand capacity. It cited a $340 billion backlog and raised full-year free-cash-flow guidance of $9 billion to $9.2 billion; these support the outlook but depend on execution and are not new orders announced today. Article: America’s Military Rebuild Starts With a Manufacturing Problem
• Negative Sentiment: The election outcome has put a major defense-spending proposal in doubt, raising concern that budget delays or reduced spending could constrain future contract growth for defense contractors, including RTX. Article: Defense Stocks Sank as Democrats Took Congress

Wall Street Analysts Forecast Growth

RTX has been the subject of a number of analyst reports. Deutsche Bank Aktiengesellschaft downgraded shares of RTX from a "buy" rating to a "hold" rating and set a $208.00 target price for the company. in a research note on Tuesday, October 13th. Morgan Stanley restated 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. DA Davidson lifted their price target on RTX from $192.00 to $219.00 and gave the stock a "neutral" rating in a report on Monday, July 27th. Citigroup reaffirmed a "buy" rating on shares of RTX in a research report on Wednesday, October 7th. Finally, Royal Bank Of Canada dropped their price objective on RTX from $250.00 to $235.00 and set an "outperform" rating on the stock in a report on Thursday, October 15th. One investment analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating, eight have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $231.24.

RTX Stock Down 3.3%

The firm has a market cap of $259.05 billion, a PE ratio of 31.16, a P/E/G ratio of 2.21 and a beta of 0.30. The company has a debt-to-equity ratio of 0.44, a quick ratio of 0.81 and a current ratio of 1.05. The firm's 50-day moving average price is $193.91 and its two-hundred day moving average price is $195.56.

RTX (NYSE:RTX - Get Free Report) last posted its earnings results on Tuesday, October 20th. The company reported $2.26 EPS for the quarter, beating analysts' consensus estimates of $1.78 by $0.48. The firm had revenue of $24.96 billion for the quarter, compared to the consensus estimate 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% on a year-over-year basis. During the same period last year, the firm posted $1.70 EPS. As a group, equities research analysts expect that RTX Corporation will post 7.68 EPS for the current fiscal year.

RTX Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, December 10th. Shareholders of record on Friday, November 20th will be paid a $0.73 dividend. This represents a $2.92 annualized dividend and a yield of 1.5%. The ex-dividend date is Friday, November 20th. RTX's dividend payout ratio is currently 47.40%.

Insider Buying and Selling at RTX

In other news, EVP Ramsaran Maharajh sold 13,655 shares of the business's stock in a transaction dated Tuesday, August 18th. The stock was sold at an average price of $223.92, for a total value of $3,057,627.60. Following the completion of the sale, the executive vice president directly owned 13,184 shares of the company's stock, valued at approximately $2,952,161.28. The trade was a 50.88% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, EVP Dantaya M. Williams sold 9,071 shares of the business's stock in a transaction dated Friday, October 30th. The shares were sold at an average price of $201.70, for a total value of $1,829,620.70. Following the completion of 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. The disclosure for this sale is available in the SEC filing. Corporate insiders own 0.10% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in RTX. Fifth Third Bancorp acquired a new stake in shares of RTX during the 3rd quarter worth $208,093,000. King Luther Capital Management Corp raised its position in shares of RTX by 12.1% in the 3rd quarter. King Luther Capital Management Corp now owns 668,112 shares of the company's stock worth $124,035,000 after buying an additional 72,294 shares during the period. Banyan Capital Management Inc. acquired a new position in RTX in the third quarter valued at $391,000. CFM Wealth Partners LLC acquired a new position in RTX in the third quarter valued at $825,000. Finally, Bingham Private Wealth LLC grew its position in RTX by 3.7% during the third quarter. Bingham Private Wealth LLC now owns 4,330 shares of the company's stock valued at $804,000 after acquiring an additional 155 shares during the period. Institutional investors and hedge funds own 86.50% of the company's stock.

About RTX

RTX Corporation NYSE: RTX is an aerospace and defense company that develops and manufactures products and systems for commercial aviation, business aviation, military aircraft and government customers. Its portfolio includes aircraft engines, avionics, flight-control systems, cabin interiors, communications equipment, air and missile defense systems, precision weapons, radars and advanced sensors.

The company operates through three principal businesses: Collins Aerospace, which supplies aerospace systems and components; Pratt & Whitney, which designs and produces aircraft engines and related services; and Raytheon, which provides defense and intelligence technologies.

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