RTX (NYSE:RTX) Stock Falls 3.3% - Should You Sell?

Key Points

• RTX shares fell 3.3% to about $191.97 in Thursday trading, with volume 32% above the daily average.
• Recent quarterly results beat expectations: earnings were $2.26 per share versus $1.78 forecast, and revenue rose 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 for optical signal-processing research, while an RTX executive’s sale of 9,071 shares could weigh on sentiment. RTX also declared a quarterly dividend of $0.73 per share.

RTX Corporation (NYSE:RTX - Get Free Report)'s share price fell 3.3% on Thursday. The stock traded as low as $190.10 and last traded at $191.9670. Approximately 7,134,756 shares were traded during mid-day trading, an increase of 32% from the average daily volume of 5,392,386 shares. The stock had previously closed at $198.43.

RTX News Roundup

Here are the key news stories impacting RTX this week:

• Positive Sentiment: Raytheon, RTX’s defense unit, won a phase-one DARPA contract for research into all-optical signal processing. The work aims to speed threat detection and response, adding to RTX’s advanced-defense technology pipeline, though it is an early-stage award. Article: RTX's Raytheon wins DARPA contract for optical signal processing
• Positive Sentiment: A recent investment commentary pointed to potential sustained demand for Patriot systems, radars, and interceptors as countries expand air defenses. It cited RTX’s substantial backlog and capacity investments, while noting that converting orders into cash depends on execution. Article: America’s Military Rebuild Starts With a Manufacturing Problem
• Negative Sentiment: EVP Dantaya Williams sold 9,071 shares, reducing her holdings by about 35%. The sale may weigh on sentiment, though the filing does not explain her reason. Article: RTX EVP sells 9,071 shares

Wall Street Analyst Weigh In

RTX has been the topic of several recent research reports. Susquehanna raised their target price on shares of RTX from $235.00 to $245.00 and gave the stock a "positive" rating in a report on Friday, July 24th. Sanford C. Bernstein cut their price target on RTX from $223.00 to $214.00 and set a "market perform" rating for the company in a research note on Thursday, October 15th. TD Cowen reduced their price target on RTX from $240.00 to $225.00 and set a "buy" rating on the stock in a research report on Friday, October 9th. Barclays raised their price objective on RTX from $223.00 to $235.00 and gave the stock an "overweight" rating in a research note on Wednesday, October 21st. Finally, Weiss Ratings raised RTX from a "buy (b)" rating to a "buy (a-)" rating in a report on Thursday, October 22nd. 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 assigned a Sell rating to the company. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average target price of $231.24.

RTX Trading Down 3.3%

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 stock has a market capitalization of $259.05 billion, a P/E ratio of 31.16, a price-to-earnings-growth ratio of 2.27 and a beta of 0.30. The firm's fifty day simple moving average is $194.31 and its 200 day simple moving average is $195.61.

RTX (NYSE:RTX - Get Free Report) last issued its quarterly earnings results on Tuesday, October 20th. The company reported $2.26 earnings per share for the quarter, topping analysts' consensus estimates of $1.78 by $0.48. The company had revenue of $24.96 billion during 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 firm's quarterly revenue was up 11.1% on a year-over-year basis. During the same quarter in the prior year, the firm posted $1.70 EPS. As a group, equities research analysts forecast that RTX Corporation will post 7.68 EPS for the current fiscal year.

RTX Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, December 10th. Shareholders of record on Friday, November 20th will be paid 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 1.5%. RTX's dividend payout ratio is presently 47.40%.

Insiders Place Their Bets

In other news, EVP Dantaya Williams sold 9,071 shares of RTX stock in a transaction on Friday, October 30th. The stock was sold at an average price of $201.70, for a total value of $1,829,620.70. Following the transaction, the executive vice president owned 16,930 shares in the company, valued at approximately $3,414,781. This trade represents a 34.89% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible 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 value of $3,057,627.60. Following the completion of the sale, the executive vice president directly owned 13,184 shares in the company, valued at $2,952,161.28. This trade represents a 50.88% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 0.10% of the company's stock.

Institutional Investors Weigh In On RTX

Hedge funds have recently made changes to their positions in the stock. Pine Valley Investments Ltd Liability Co increased its holdings in RTX by 63.2% in the 1st quarter. Pine Valley Investments Ltd Liability Co now owns 33,877 shares of the company's stock worth $6,535,000 after acquiring an additional 13,118 shares during the last quarter. Rokos Capital Management LLP raised its stake in RTX by 804.3% in the 1st quarter. Rokos Capital Management LLP now owns 556,152 shares of the company's stock valued at $107,265,000 after acquiring an additional 494,652 shares during the period. Legal & General Group Plc purchased a new stake in RTX during the second quarter valued at about $1,267,256,000. Eastern Bank lifted its holdings in RTX by 112.0% during the third quarter. Eastern Bank now owns 177,392 shares of the company's stock valued at $32,933,000 after purchasing an additional 93,725 shares during the last quarter. Finally, Corient Private Wealth LP lifted 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 valued at $265,604,000 after purchasing an additional 1,349,350 shares during the last quarter. 86.50% of the stock is currently owned by institutional investors and hedge funds.

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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