RTX (NYSE:RTX) Shares Down 1.5% - What's Next?

Key Points

• RTX shares fell 1.5% to about $194.49 in mid-day trading, with volume below the average session level.
• The company reported strong quarterly results, including $2.26 in adjusted earnings per share versus $1.78 expected, revenue growth of 11.1%, and a record $340 billion backlog supporting long-term visibility.
• Analysts maintain a consensus “Moderate Buy” rating with a $228.32 price target, but RTX’s valuation near 32 times earnings may limit upside after its substantial three-year rally.

RTX Corporation (NYSE:RTX - Get Free Report) dropped 1.5% during mid-day trading on Tuesday. The stock traded as low as $194.36 and last traded at $194.4940. Approximately 4,345,883 shares traded hands during trading, a decline of 19% from the average session volume of 5,361,765 shares. The stock had previously closed at $197.48.

RTX News Roundup

Here are the key news stories impacting RTX this week:

• Positive Sentiment: RTX’s record $340 billion backlog, including approximately $164 billion in defense orders, provides long-term revenue visibility. Analysts also highlight the company’s balanced exposure to commercial aerospace and defense markets, which could support performance across different economic conditions. RTX Has a $340 Billion Backlog and Trades at 32 Times Earnings
• Positive Sentiment: Recent coverage points to an 11% year-over-year sales increase and ongoing benefits from higher defense budgets, missile demand, radar modernization and drone-related opportunities. These trends reinforce expectations for continued growth in RTX’s core businesses. Better Defense Stock to Own Through 2030: Palantir vs. RTX Corporation
• Positive Sentiment: Collins Aerospace launched an OpenAPI service that allows business aviation operators to integrate ARINCDirect flight-planning and operational data with existing software. The initiative could improve customer workflows and deepen Collins’ relationships with flight departments. What Could RTX Gain From Collins Aerospace’s New OpenAPI Launch?
• Neutral Sentiment: RTX CFO Neil Mitchill is scheduled to speak at the Baird Global Industrial Conference on November 10. Investors may look for updates on backlog conversion, cash flow, supply-chain execution and guidance, but the announcement itself does not change fundamentals. RTX CFO to Present at the Baird 2026 Global Industrial Conference
• Negative Sentiment: Valuation remains a potential constraint: RTX trades at roughly 32 times earnings after a 166.8% three-year rally. Coverage describes the shares as fairly valued versus peers, suggesting much of the company’s strong backlog and cash-generation outlook may already be reflected in the stock. Is RTX Stock Cheap, or Is Its Cash Flow Priced In?

Analyst Ratings Changes

RTX has been the subject of a number of recent analyst reports. JPMorgan Chase & Co. lifted their price target on shares of RTX from $215.00 to $240.00 and gave the stock an "overweight" rating in a research note on Friday, July 24th. Royal Bank Of Canada cut their target price on RTX from $250.00 to $235.00 and set an "outperform" rating on the stock in a research note on Thursday, October 15th. Sanford C. Bernstein reduced their price target on RTX from $223.00 to $214.00 and set a "market perform" rating on the stock in a report on Thursday, October 15th. Robert W. Baird set a $240.00 price target on RTX in a report on Friday, July 24th. Finally, Susquehanna raised their price target on RTX from $235.00 to $245.00 and gave the stock a "positive" rating in a research note on Friday, July 24th. One equities research analyst has rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating, eight have issued a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $228.32.

RTX Price Performance

The company has a quick ratio of 0.81, a current ratio of 1.05 and a debt-to-equity ratio of 0.44. The firm has a market cap of $262.46 billion, a PE ratio of 31.57, a price-to-earnings-growth ratio of 2.24 and a beta of 0.31. The stock has a 50 day moving average price of $196.62 and a two-hundred day moving average price of $195.37.

RTX (NYSE:RTX - Get Free Report) last announced its quarterly earnings data on Tuesday, October 20th. The company reported $2.26 earnings per share for the quarter, beating analysts' consensus estimates of $1.78 by $0.48. The business had revenue of $24.96 billion for the quarter, compared to analyst estimates of $24.11 billion. RTX had a return on equity of 14.89% and a net margin of 8.75%. The company's revenue was up 11.1% on a year-over-year basis. During the same period in the prior year, the company earned $1.70 earnings per share. As a group, equities analysts expect that RTX Corporation will post 7.57 earnings per share for the current year.

Insider Buying and Selling

In other news, EVP Ramsaran Maharajh sold 13,655 shares of the firm's stock in a transaction that occurred on 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 sale, the executive vice president owned 13,184 shares of the company's stock, valued at $2,952,161.28. This trade represents a 50.88% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Corporate insiders own 0.10% of the company's stock.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the company. BlackRock Inc. acquired a new stake in RTX in the second quarter valued at approximately $20,970,571,000. Bank of New York Mellon Corp acquired a new stake in RTX in the 2nd quarter valued at $1,456,256,000. Legal & General Group Plc purchased a new stake in RTX in the 2nd quarter worth $1,267,256,000. Deutsche Bank AG purchased a new stake in RTX in the 2nd quarter worth $725,900,000. Finally, Mitsubishi UFJ Asset Management Co. Ltd. acquired a new position in RTX during the second quarter worth $636,932,000. Institutional investors and hedge funds own 86.50% of the company's stock.

RTX Company Profile

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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