RTX (NYSE:RTX) Shares Up 3.4% - Should You Buy?

Key Points

• RTX shares rose 3.4% to about $197.45, with trading volume slightly above average and the stock near its 50-day and 200-day moving averages.
• Investors are focused on RTX’s defense exposure, including a reported $340 billion backlog, a 4.57x defense book-to-bill ratio and 36% year-over-year backlog growth, alongside recovering commercial aerospace demand.
• RTX recently exceeded quarterly expectations with adjusted EPS of $2.26 versus a $1.78 consensus and revenue of $24.96 billion; analysts maintain a “Moderate Buy” consensus with an average price target of $227.12, though some firms have issued downgrades or reduced targets.

RTX Corporation (NYSE:RTX - Get Free Report)'s share price shot up 3.4% on Monday. The stock traded as high as $197.91 and last traded at $197.4490. 5,573,101 shares traded hands during trading, an increase of 4% from the average session volume of 5,366,640 shares. The stock had previously closed at $191.01.

RTX News Roundup

Here are the key news stories impacting RTX this week:

• Positive Sentiment: RTX is highlighted as a preferred way to participate in a projected defense-spending boom. The article points to a 4.57x defense book-to-bill ratio, 36% year-over-year backlog growth, diversified business exposure and strong aftermarket demand—factors that improve revenue visibility and support future margin expansion. My Favorite Way To Cash In On A $740 Billion Defense Boom
• Positive Sentiment: A Zacks feature says RTX posted quarterly records and has a backlog of approximately $340 billion, reinforcing the investment case based on commercial aerospace recovery, defense demand and multi-year contracts. Zacks Investment Ideas Feature Highlights
• Positive Sentiment: RTX is included among growth stocks that have pulled back despite solid fundamentals, potentially attracting value-oriented investors seeking an entry point in aerospace and defense. 5 Beaten-Down Growth Stocks Trading Like Value Plays
• Neutral Sentiment: Analyst comparisons with General Dynamics and ATI examine relative growth forecasts, contract wins, valuation and year-to-date performance. They may influence investor preference within the defense sector but do not report a new RTX contract or guidance change. RTX vs. GD: Which Defense Stock Has Greater Upside Potential?

Analyst Ratings Changes

A number of equities research analysts have weighed in on RTX shares. Susquehanna raised 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. Deutsche Bank Aktiengesellschaft downgraded shares of RTX from a "buy" rating to a "hold" rating and set a $208.00 price target on the stock. in a research note on Tuesday, October 13th. Morgan Stanley reaffirmed an "overweight" rating and issued a $240.00 price objective (up from $220.00) on shares of RTX in a research note on Friday, July 24th. Weiss Ratings upgraded shares of RTX from a "buy (b)" rating to a "buy (a-)" rating in a research report on Thursday. Finally, TD Cowen lowered their price target on shares of RTX from $240.00 to $225.00 and set a "buy" rating for the company in a research note on Friday, October 9th. One investment analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating, eight have assigned a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $227.12.

RTX Trading Up 3.4%

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 firm's 50 day moving average price is $196.68 and its 200 day moving average price is $193.59. The stock has a market capitalization of $266.45 billion, a P/E ratio of 32.05, a P/E/G ratio of 2.24 and a beta of 0.31.

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

Insider Buying and Selling at RTX

In other RTX news, EVP Ramsaran Maharajh sold 13,655 shares of the business's stock in a transaction 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 transaction, 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 sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, VP Kevin G. Dasilva sold 2,250 shares of the company's stock in a transaction on Tuesday, July 28th. The stock was sold at an average price of $216.93, for a total transaction of $488,092.50. Following the completion of the transaction, the vice president owned 20,099 shares of the company's stock, valued at $4,360,076.07. This trade represents a 10.07% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders own 0.10% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in RTX. BlackRock Inc. bought a new position in RTX in the second quarter worth $20,970,571,000. State Street Corp grew its position in shares of RTX by 3.1% in the 2nd quarter. State Street Corp now owns 95,417,318 shares of the company's stock worth $18,103,528,000 after buying an additional 2,828,056 shares during the period. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its position in shares of RTX by 5.0% in the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 8,693,939 shares of the company's stock worth $1,649,501,000 after buying an additional 411,356 shares during the period. Amundi grew its position in shares of RTX by 4.0% in the 2nd quarter. Amundi now owns 7,768,207 shares of the company's stock worth $1,473,862,000 after buying an additional 295,964 shares during the period. Finally, Bank of New York Mellon Corp bought a new position in shares of RTX in the 2nd quarter worth about $1,456,256,000. Hedge funds and other 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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