RTX (NYSE:RTX) Shares Up 1.5% - Should You Buy?

Key Points

• RTX shares rose 1.5% to about $202.80 in mid-day trading, with trading volume below its average. The stock has a market capitalization of approximately $273.7 billion and trades at a P/E ratio near 32.9.
• Analysts maintain a generally positive view, with a consensus rating of “Moderate Buy” and an average price target of $231.24, implying upside from current levels. However, valuation, execution risks, engine-program costs and commercial aviation exposure remain considerations.
• RTX reported strong quarterly results, including $2.26 in EPS versus a $1.78 estimate and revenue of $24.96 billion, up 11.1% year over year. The company also declared a $0.73 quarterly dividend, equal to a 1.4% annualized yield.

RTX Corporation (NYSE:RTX - Get Free Report)'s share price was up 1.5% during mid-day trading on Monday. The company traded as high as $203.07 and last traded at $202.8030. Approximately 4,267,605 shares were traded during mid-day trading, a decline of 21% from the average session volume of 5,391,162 shares. The stock had previously closed at $199.80.

Key RTX News

Here are the key news stories impacting RTX this week:

• Positive Sentiment: InvestorPlace highlighted RTX’s Raytheon business as a potential beneficiary of long-term demand for Patriot air and missile defense systems, GEM-T interceptors, LTAMDS radar and counter-drone products such as Coyote interceptors. Replenishment orders, system upgrades and expanded deployments could support multi-year revenue, maintenance and support opportunities. Why I’m Watching This Missile Defense Giant as America Rearms for Drone Warfare
• Positive Sentiment: A separate analysis said defense stocks including RTX could benefit as improved cooperation between contractors and the U.S. government reduces risks associated with fixed-price development contracts. The potential for sustained weapons replenishment and modernization was presented as a catalyst for sector-wide share-price appreciation. Prediction: Defense Stocks Like Lockheed Martin, RTX, and Boeing Are Set to Soar
• Positive Sentiment: Zacks included RTX among sales-growth stocks to consider amid market volatility, citing its potential resilience despite inflation and tighter financial conditions. Invest in These 3 Sales Growth Stocks Amid AI-Led Market Volatility
• Neutral Sentiment: Wall Street’s outlook remains cautiously optimistic after RTX’s strong recent operating performance. Analysts recognize the company’s defense and aerospace opportunities but appear mindful of valuation, execution, engine-program costs and commercial aviation exposure. Are Wall Street Analysts Bullish on RTX Corporation Stock?
• Neutral Sentiment: Most of the remaining articles concern NVIDIA’s GeForce RTX graphics cards—not RTX Corporation—and therefore have no direct fundamental effect on RTX NYSE: RTX. GPU shortages, pricing and product delays may create headline confusion but do not explain the stock’s movement.

Analyst Ratings Changes

RTX has been the subject of several recent analyst reports. Robert W. Baird set a $240.00 price objective on shares of RTX in a research note on Friday, July 24th. Weiss Ratings raised shares of RTX from a "buy (b)" rating to a "buy (a-)" rating in a report on Thursday, October 22nd. DA Davidson increased their price objective on RTX from $192.00 to $219.00 and gave the stock a "neutral" rating in a research report on Monday, July 27th. Susquehanna raised their price target on RTX from $235.00 to $245.00 and gave the company a "positive" rating in a report on Friday, July 24th. Finally, Argus set a $245.00 price target on RTX and gave the company a "buy" rating in a research report on Thursday, July 30th. One investment analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating, eight have issued a Hold rating and one has given 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 an average target price of $231.24.

RTX Stock Performance

The company has a 50 day simple moving average of $194.81 and a 200-day simple moving average of $195.55. The company has a debt-to-equity ratio of 0.44, a current ratio of 1.05 and a quick ratio of 0.81. The stock has a market cap of $273.67 billion, a P/E ratio of 32.92, a price-to-earnings-growth ratio of 2.23 and a beta of 0.30.

RTX (NYSE:RTX - Get Free Report) last announced its quarterly earnings data on Tuesday, October 20th. The company reported $2.26 EPS 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 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 EPS. On average, equities analysts expect that RTX Corporation will post 7.67 earnings per share for the current fiscal year.

RTX Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, December 10th. Investors of record on Friday, November 20th will be issued a dividend of $0.73 per share. The ex-dividend date is Friday, November 20th. This represents a $2.92 annualized dividend and a yield of 1.4%. RTX's dividend payout ratio is currently 47.40%.

Insiders Place Their Bets

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 value of $3,057,627.60. Following the transaction, the executive vice president owned 13,184 shares in the company, valued at approximately $2,952,161.28. This trade represents a 50.88% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders own 0.10% of the company's stock.

Institutional Investors Weigh In On RTX

A number of large investors have recently added to or reduced their stakes in the company. Montz Harcus Wealth Management LLC increased its holdings in RTX by 3.2% during the 2nd quarter. Montz Harcus Wealth Management LLC now owns 1,641 shares of the company's stock valued at $311,000 after purchasing an additional 51 shares during the period. IMG Wealth Management Inc. lifted its holdings in RTX by 5.7% in the 3rd quarter. IMG Wealth Management Inc. now owns 958 shares of the company's stock worth $178,000 after buying an additional 52 shares during the period. Safeguard Investment Advisory Group LLC grew its position in shares of RTX by 2.4% in the 2nd quarter. Safeguard Investment Advisory Group LLC now owns 2,269 shares of the company's stock worth $430,000 after buying an additional 53 shares during the last quarter. Global View Capital Management LLC grew its position in shares of RTX by 4.0% in the 3rd quarter. Global View Capital Management LLC now owns 1,373 shares of the company's stock worth $255,000 after buying an additional 53 shares during the last quarter. Finally, Investment Research Partners LLC increased its stake in shares of RTX by 2.3% during the third quarter. Investment Research Partners LLC now owns 2,502 shares of the company's stock valued at $464,000 after buying an additional 56 shares during the period. Institutional investors 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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