RTX (NYSE:RTX) Shares Down 1.4% - Should You Sell?

Key Points

• RTX shares fell 1.4% to about $198.39, with trading volume 25% below its daily average.
• The company beat quarterly expectations, reporting EPS of $2.26 versus $1.78 forecast and revenue of $24.96 billion, up 11.1% year over year.
• Analyst sentiment is generally positive: RTX has a “Moderate Buy” consensus and a $231.24 average price target, though the article notes its premium valuation could limit upside if growth expectations aren’t met.

RTX Corporation (NYSE:RTX - Get Free Report) fell 1.4% on Thursday. The company traded as low as $198.25 and last traded at $198.3880. Approximately 4,045,282 shares were traded during mid-day trading, a decline of 25% from the average daily volume of 5,381,111 shares. The stock had previously closed at $201.29.

RTX News Summary

These are some of the RTX news items that stood out recently:

• Positive Sentiment: RTX was included among aerospace and defense companies seen as beneficiaries of rising defense spending, strong order backlogs and improved earnings outlooks. Buy 4 Aerospace Defense Behemoths to Enhance Your Portfolio Returns
• Positive Sentiment: One report sees margin expansion and cash-flow growth for RTX in 2027, which could strengthen the company’s financial outlook if delivered. RTX Sees Margin Expansion, Cash Flow Growth in 2027
• Negative Sentiment: RTX’s strong performance and growth prospects come with a premium valuation, which could limit upside or make the shares more vulnerable if expectations are not met. RTX Outperforms Industry in the Past Year: Should You Buy?

Analyst Upgrades and Downgrades

Several research firms recently commented on RTX. Barclays raised their target price on RTX from $223.00 to $235.00 and gave the stock an "overweight" rating in a research report on Wednesday, October 21st. Susquehanna upped their price target on RTX from $235.00 to $245.00 and gave the company a "positive" rating in a research report on Friday, July 24th. Zacks Research upgraded RTX from a "hold" rating to a "strong-buy" rating in a research report on Monday. Robert W. Baird set a $240.00 price objective on RTX in a research note on Friday, July 24th. Finally, JPMorgan Chase & Co. lifted their price objective on RTX from $215.00 to $240.00 and gave the company an "overweight" rating in a report on Friday, July 24th. One analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating, eight have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $231.24.

RTX Stock Performance

The firm has a market capitalization of $267.71 billion, a P/E ratio of 32.21, a price-to-earnings-growth ratio of 2.22 and a beta of 0.30. The stock has a 50-day moving average of $192.93 and a 200 day moving average of $195.57. The company has a debt-to-equity ratio of 0.44, a quick ratio of 0.81 and a current ratio of 1.05.

RTX (NYSE:RTX - Get Free Report) last issued its quarterly earnings data on Tuesday, October 20th. The company reported $2.26 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.78 by $0.48. The firm had revenue of $24.96 billion during the quarter, compared to the consensus estimate of $24.11 billion. RTX had a return on equity of 14.89% and a net margin of 8.75%. The business's revenue for the quarter 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. On average, research analysts anticipate that RTX Corporation will post 7.73 earnings per share for the current year.

RTX Announces Dividend

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

Insider Activity

In other RTX news, EVP Dantaya Williams sold 9,071 shares of the stock in a transaction dated Friday, October 30th. The shares were sold at an average price of $201.70, for a total transaction of $1,829,620.70. Following the sale, the executive vice president owned 16,930 shares of the company's stock, valued at $3,414,781. This represents a 34.89% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, EVP Ramsaran Maharajh sold 13,655 shares of the firm's stock in a transaction dated Tuesday, August 18th. The shares were sold at an average price of $223.92, for a total transaction of $3,057,627.60. Following the completion of the sale, the executive vice president owned 13,184 shares of the company's stock, valued at $2,952,161.28. The trade was a 50.88% decrease in their position. The SEC filing for this sale provides additional information. 0.10% of the stock is owned by corporate insiders.

Institutional Trading of RTX

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Pine Valley Investments Ltd Liability Co grew its stake in shares of RTX by 63.2% during the first quarter. Pine Valley Investments Ltd Liability Co now owns 33,877 shares of the company's stock worth $6,535,000 after purchasing an additional 13,118 shares during the period. Rokos Capital Management LLP lifted its stake in RTX by 804.3% in the first quarter. Rokos Capital Management LLP now owns 556,152 shares of the company's stock valued at $107,265,000 after buying an additional 494,652 shares during the period. Legal & General Group Plc acquired a new position in RTX in the second quarter valued at about $1,267,256,000. Eastern Bank boosted its holdings in RTX by 112.0% during the third quarter. Eastern Bank now owns 177,392 shares of the company's stock worth $32,933,000 after buying an additional 93,725 shares during the last quarter. Finally, Corient Private Wealth LP boosted its holdings in RTX by 2,669.1% during the second quarter. Corient Private Wealth LP now owns 1,399,904 shares of the company's stock worth $265,604,000 after buying an additional 1,349,350 shares during the last quarter. Institutional investors and hedge funds own 86.50% of the company's stock.

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.

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