RTX (NYSE:RTX) Stock Price Up 2.1% - Should You Buy?

Key Points

• RTX shares rose 2.1% to about $199.99 on trading volume more than double its average, following strong quarterly results that beat expectations on both earnings and revenue.
• The company declared a 73-cent-per-share quarterly dividend, raised its outlook, and continues to benefit from a record backlog, recovering commercial aerospace demand, and a long-term Collins Aerospace maintenance contract.
• Analyst sentiment remains favorable, with a “Moderate Buy” consensus and an average price target of $228.86, although ratings range from Strong Buy to Sell and one insider recently sold shares.

Shares of RTX Corporation (NYSE:RTX - Get Free Report) were up 2.1% during trading on Thursday. The stock traded as high as $202.00 and last traded at $199.99. Approximately 11,630,825 shares changed hands during trading, an increase of 116% from the average daily volume of 5,390,512 shares. The stock had previously closed at $195.84.

RTX News Summary

Here are the key news stories impacting RTX this week:

• Positive Sentiment: Quarterly dividend declared: RTX’s board approved a cash dividend of 73 cents per share, signaling continued confidence in cash generation and providing income support for shareholders. RTX Board of Directors Declares Quarterly Cash Dividend
• Positive Sentiment: Raised outlook and strong third-quarter results: Recent coverage highlights RTX’s higher revenue and earnings, raised guidance, record backlog and signs of recovering commercial aerospace demand. The company’s latest reported quarter also exceeded consensus estimates on both earnings and revenue, reinforcing the bullish outlook. RTX Could Be 14% Undervalued As Raised Guidance Lifts The Valuation Case
• Positive Sentiment: Long-term Collins Aerospace contract: Air Europa extended its exclusive Boeing 787 nacelle maintenance agreement with Collins Aerospace through 2037. The renewal supports recurring aftermarket revenue and improves visibility into future service demand. Air Europa Extends Exclusive Boeing 787 Nacelle Maintenance Agreement
• Positive Sentiment: Constructive analyst sentiment: Zacks coverage says the average brokerage recommendation for RTX is equivalent to a Buy. While analyst ratings are not guarantees, the favorable consensus can support investor interest following the earnings beat. Is It Worth Investing in RTX Based on Wall Street’s Bullish Views?
• Neutral Sentiment: Important ticker distinction: Reports about GeForce RTX 5080, RTX 5090 and “RTX Spark” concern NVIDIA’s gaming and AI hardware, not RTX Corporation, and therefore do not directly affect RTX’s aerospace and defense business.

Analysts Set New Price Targets

RTX has been the subject of a number of analyst reports. Susquehanna upped their price objective on shares of RTX from $235.00 to $245.00 and gave the stock a "positive" rating in a research report on Friday, July 24th. DA Davidson lifted their target price on shares of RTX from $192.00 to $219.00 and gave the company a "neutral" rating in a research report on Monday, July 27th. Argus set a $245.00 price target on shares of RTX and gave the company a "buy" rating in a research note on Thursday, July 30th. Wells Fargo & Company lifted their price objective on RTX from $200.00 to $230.00 and gave the stock an "equal weight" rating in a report on Friday, July 24th. Finally, Deutsche Bank Aktiengesellschaft lowered RTX from a "buy" rating to a "hold" rating and set a $208.00 price objective for the company. in a research note on Tuesday, October 13th. One 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. According to MarketBeat, RTX presently has a consensus rating of "Moderate Buy" and a consensus price target of $228.86.

RTX Stock Up 2.1%

The company has a current ratio of 1.05, a quick ratio of 0.81 and a debt-to-equity ratio of 0.44. The business has a fifty day simple moving average of $195.47 and a two-hundred day simple moving average of $195.46. The company has a market cap of $269.87 billion, a PE ratio of 32.47, a price-to-earnings-growth ratio of 2.24 and a beta of 0.31.

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

Insider Buying and Selling

In other RTX 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 directly 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 transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Insiders own 0.10% of the company's stock.

Institutional Investors Weigh In On RTX

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. BlackRock Inc. acquired a new position in shares of RTX in the 2nd quarter valued at $20,970,571,000. State Street Corp boosted its position in shares of RTX by 3.1% during the 2nd quarter. State Street Corp now owns 95,417,318 shares of the company's stock valued at $18,103,528,000 after acquiring an additional 2,828,056 shares in the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its position in shares of RTX by 5.0% during 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 valued at $1,649,501,000 after acquiring an additional 411,356 shares in the last quarter. Dimensional Fund Advisors LP increased its stake in RTX by 1.3% in the first quarter. Dimensional Fund Advisors LP now owns 7,649,112 shares of the company's stock valued at $1,475,296,000 after acquiring an additional 95,726 shares during the period. Finally, Amundi increased its stake in RTX by 4.0% in the second quarter. Amundi now owns 7,768,207 shares of the company's stock valued at $1,473,862,000 after acquiring an additional 295,964 shares during the period. 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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