RTX (NYSE:RTX) Stock Price Down 1.7% - What's Next?

Key Points

• RTX shares fell 1.7% to about $193.50, with trading volume below average. The stock remains valued at roughly $260.8 billion and trades at a P/E ratio of 34.07.
• RTX reportedly secured a roughly $22.9 billion Tomahawk missile contract, strengthening its defense backlog and exposure to increased U.S. military spending. However, Jim Cramer cautioned that the stock may already price in much of its expected growth.
• Analyst sentiment remains favorable, with a consensus “Moderate Buy” rating and an average price target of $228.59. Recent quarterly revenue and earnings beat expectations, rising 14.5% and 21.2% year over year, respectively.

RTX Corporation (NYSE:RTX - Get Free Report) shares were down 1.7% during trading on Thursday . The stock traded as low as $191.84 and last traded at $193.5040. Approximately 3,489,318 shares traded hands during trading, a decline of 36% from the average daily volume of 5,431,511 shares. The stock had previously closed at $196.83.

Key Stories Impacting RTX

Here are the key news stories impacting RTX this week:

• Positive Sentiment: RTX reportedly secured a roughly $22.9 billion Tomahawk missile contract, one of the largest missile awards in Pentagon history. The deal adds to a backlog reported at approximately $289 billion and reinforces the company’s exposure to rising U.S. defense spending. Jim Cramer Says Defense Giant Still Too Expensive, Despite $22.9 Billion Tomahawk Missile Deal
• Positive Sentiment: Analyst optimism improved after Zacks upgraded RTX to a Rank #2 (Buy), citing strengthening earnings prospects. The upgrade follows RTX’s recent quarterly performance, in which revenue and adjusted earnings exceeded consensus expectations. RTX Upgraded to Buy: Here's Why
• Positive Sentiment: RTX is expanding its survivable communications portfolio with satellite, very-low-frequency communications and command-and-control capabilities. These offerings could support longer-term defense growth as governments invest in resilient military communications. Can RTX's Survivable Communications Portfolio Support Defense Growth?
• Neutral Sentiment: RTX appointed Jill Albertelli as president of Pratt & Whitney, effective January 1, 2027, succeeding retiring executive Shane Eddy. The transition provides leadership continuity, although investors will monitor progress in the aerospace-engine and supply-chain businesses. RTX names Jill Albertelli as President, Pratt & Whitney
• Negative Sentiment: Jim Cramer cautioned that RTX remains expensive even after the missile award, arguing that much of the defense-growth outlook may already be reflected in the stock. A quarter-point Federal Reserve rate hike could also weigh on highly valued shares by increasing discount rates and investor financing costs. Jim Cramer Says Defense Giant Still Too Expensive, Despite $22.9 Billion Tomahawk Missile Deal

Analysts Set New Price Targets

RTX has been the subject of several recent research reports. Royal Bank Of Canada boosted their price target on RTX from $230.00 to $250.00 and gave the company an "outperform" rating in a research note on Friday, July 24th. Argus set a $245.00 price objective on RTX in a research note on Thursday, July 30th. Morgan Stanley reaffirmed an "overweight" rating and issued a $240.00 price objective on shares of RTX in a report on Friday, July 24th. Jefferies Financial Group set a $250.00 target price on RTX in a research report on Sunday, July 26th. Finally, TD Cowen increased their target price on RTX from $225.00 to $240.00 and gave the stock a "buy" rating in a report on Monday, July 27th. One investment analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating, five have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $228.59.

RTX Stock Down 1.7%

The firm has a 50 day simple moving average of $208.24 and a two-hundred day simple moving average of $195.89. The stock has a market capitalization of $260.80 billion, a P/E ratio of 34.07, a PEG ratio of 2.52 and a beta of 0.29. The company has a quick ratio of 0.78, a current ratio of 1.01 and a debt-to-equity ratio of 0.47.

RTX (NYSE:RTX - Get Free Report) last issued its quarterly earnings results on Thursday, July 23rd. The company reported $1.89 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.66 by $0.23. RTX had a return on equity of 13.99% and a net margin of 8.28%.The company had revenue of $24.71 billion for the quarter, compared to analyst estimates of $22.89 billion. During the same quarter last year, the company posted $1.56 EPS. The company's revenue for the quarter was up 14.5% compared to the same quarter last year. RTX has set its FY 2026 guidance at 7.100-7.250 EPS. On average, equities research analysts expect that RTX Corporation will post 7.22 earnings per share for the current year.

RTX Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, September 3rd. Investors of record on Friday, August 14th were issued a dividend of $0.73 per share. The ex-dividend date of this dividend was Friday, August 14th. This represents a $2.92 annualized dividend and a dividend yield of 1.5%. RTX's dividend payout ratio (DPR) is 51.41%.

Insider Buying and Selling

In other RTX news, VP Kevin G. Dasilva sold 2,250 shares of the stock in a transaction dated Tuesday, July 28th. The stock was sold at an average price of $216.93, for a total value of $488,092.50. Following the completion of the transaction, the vice president directly owned 20,099 shares in the company, valued at approximately $4,360,076.07. This trade represents a 10.07% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, EVP Ramsaran Maharajh sold 13,655 shares of RTX 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 sale, the executive vice president directly owned 13,184 shares in the company, valued at $2,952,161.28. The trade was a 50.88% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 29,222 shares of company stock worth $6,362,003 in the last 90 days. Insiders own 0.10% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the business. BlackRock Inc. acquired a new position in shares of RTX during the second quarter worth $20,970,571,000. Norges Bank acquired a new stake in RTX in the fourth quarter valued at $3,167,626,000. Auto Owners Insurance Co increased its holdings in RTX by 24,730.9% in the fourth quarter. Auto Owners Insurance Co now owns 10,102,956 shares of the company's stock valued at $1,852,882,000 after purchasing an additional 10,062,269 shares during the period. Bank of New York Mellon Corp bought a new position in RTX during the 2nd quarter worth $1,456,256,000. Finally, Legal & General Group Plc acquired a new position in RTX during the 2nd quarter worth about $1,267,256,000. Institutional investors own 86.50% of the company's stock.

About RTX

RTX Corporation NYSE: RTX is an aerospace and defense company that develops and manufactures systems, products and services for commercial aviation, business aviation and government customers. Its offerings include aircraft engines, avionics, flight-control systems, cabin interiors, communications equipment, radar, air and missile defense systems, precision weapons and cybersecurity solutions.

The company operates through three principal businesses: Collins Aerospace, which provides aerospace systems and components; Pratt & Whitney, which designs and manufactures aircraft engines and provides related maintenance services; and Raytheon, which develops integrated defense systems, sensors, missiles and other mission technologies.

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