RTX (NYSE:RTX) Shares Down 2.7% - What's Next?

Key Points

• RTX shares fell 2.7% to $174.42 on heavy volume (~10.47M shares, +75% vs. average), with the drop attributed mainly to an analyst downgrade and negative commentary driving short‑term selling.
• The company beat Q1 estimates (EPS $1.78 vs. $1.52; revenue $22.08B vs. $21.38B) and set FY2026 guidance of 6.600–6.800 EPS, while analysts retain a consensus "Moderate Buy" rating and an average target of about $202, supporting potential upside.
• Technically the stock trades below both its 50‑day ($199.47) and 200‑day ($187.63) moving averages, carries a P/E of 32.7 and $234.9B market cap, and recent insider selling may add near‑term caution despite defense sector tailwinds.

RTX Corporation (NYSE:RTX - Get Free Report)'s share price was down 2.7% on Friday . The stock traded as low as $171.63 and last traded at $174.4210. Approximately 10,470,013 shares traded hands during mid-day trading, an increase of 75% from the average daily volume of 5,986,406 shares. The stock had previously closed at $179.30.

Key Stories Impacting RTX

Here are the key news stories impacting RTX this week:

• Positive Sentiment: NPS Foundation names RTX a foundational partner of the Naval Innovation Center, underscoring ongoing defense relationships and program visibility that support long‑term revenue for aerospace and defense contractors. NPS Foundation Recognizes Dell Technologies and RTX
• Positive Sentiment: Citi (via Barron's) says defense stocks can weather a big Democratic midterm win and calls recent weakness a buying opportunity — a sector-level endorsement that can help support RTX valuation. Defense Stocks Can Survive Big Win by Democrats in Midterms, Says Citi
• Positive Sentiment: Brokerage consensus remains constructive—RTX has an average rating of “Moderate Buy,” which provides analyst support under current selling pressure. RTX Receives Average Rating of "Moderate Buy"
• Neutral Sentiment: Industry comparison pieces highlight that defense spending tailwinds benefit both Lockheed and RTX; useful context but not an immediate catalyst. Lockheed Martin vs. RTX: Defense Spending Is Surging
• Neutral Sentiment: Several consumer tech/gaming stories referencing “RTX 5060/5070” are about GPU branding (NVIDIA) and not RTX Corporation; these are unlikely to affect RTX’s fundamentals. Multi-skilled RTX 5060 gaming laptop gets new coupon deal at Amazon
• Negative Sentiment: Analyst downgrade has triggered near-term selling pressure and is cited directly as causing additional downside in trading; this is the main driver of today’s weaker price action. RTX Trading Down 3.3% on Analyst Downgrade
• Negative Sentiment: Critical commentary (e.g., Seeking Alpha pieces noting investors rotating out despite solid results) may be amplifying short-term exits and sentiment risk even though results and guidance were decent. RTX: Gift Exit Despite Solid Results

Analyst Upgrades and Downgrades

Several analysts recently weighed in on RTX shares. Vertical Research reiterated a "buy" rating and issued a $227.00 target price on shares of RTX in a report on Tuesday, January 27th. Wolfe Research reiterated an "outperform" rating on shares of RTX in a report on Wednesday, February 4th. UBS Group dropped their target price on shares of RTX from $209.00 to $199.00 and set a "neutral" rating for the company in a report on Wednesday. Sanford C. Bernstein reiterated a "market perform" rating and issued a $204.00 target price on shares of RTX in a report on Thursday, January 29th. Finally, Citigroup dropped their price target on shares of RTX from $238.00 to $226.00 and set a "buy" rating for the company in a research note on Thursday, April 2nd. One investment analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $202.28.

RTX Trading Down 2.7%

The company's 50 day simple moving average is $199.47 and its 200 day simple moving average is $187.63. The firm has a market cap of $234.89 billion, a price-to-earnings ratio of 32.72, a P/E/G ratio of 2.61 and a beta of 0.43. The company has a debt-to-equity ratio of 0.48, a current ratio of 1.02 and a quick ratio of 0.80.

RTX (NYSE:RTX - Get Free Report) last posted its quarterly earnings results on Tuesday, April 21st. The company reported $1.78 EPS for the quarter, topping the consensus estimate of $1.52 by $0.26. The business had revenue of $22.08 billion during the quarter, compared to the consensus estimate of $21.38 billion. RTX had a net margin of 8.03% and a return on equity of 13.50%. The company's quarterly revenue was up 8.7% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $1.47 earnings per share. RTX has set its FY 2026 guidance at 6.600-6.800 EPS. As a group, research analysts expect that RTX Corporation will post 6.81 earnings per share for the current fiscal year.

RTX Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, March 19th. Shareholders of record on Friday, February 20th were paid a $0.68 dividend. The ex-dividend date was Friday, February 20th. This represents a $2.72 annualized dividend and a dividend yield of 1.6%. RTX's payout ratio is 51.03%.

Insiders Place Their Bets

In other news, EVP Ramsaran Maharajh sold 15,124 shares of RTX stock in a transaction on Thursday, February 19th. The shares were sold at an average price of $204.65, for a total transaction of $3,095,126.60. Following the completion of the sale, the executive vice president directly owned 13,184 shares of the company's stock, valued at approximately $2,698,105.60. The trade was a 53.43% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, VP Kevin G. Dasilva sold 8,136 shares of RTX stock in a transaction on Friday, February 13th. The stock was sold at an average price of $201.30, for a total transaction of $1,637,776.80. Following the sale, the vice president directly owned 27,102 shares of the company's stock, valued at approximately $5,455,632.60. This trade represents a 23.09% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders have sold 89,255 shares of company stock valued at $18,151,956. Corporate insiders own 0.10% of the company's stock.

Institutional Investors Weigh In On RTX

Institutional investors and hedge funds have recently bought and sold shares of the stock. Navalign LLC purchased a new stake in RTX in the fourth quarter valued at $25,000. Commonwealth Retirement Investments LLC purchased a new stake in RTX in the fourth quarter valued at $26,000. BNP Paribas purchased a new stake in RTX in the third quarter valued at $25,000. Core Wealth Advisors LLC purchased a new stake in RTX in the fourth quarter valued at $31,000. Finally, 1 North Wealth Services LLC lifted its position in RTX by 456.7% in the fourth quarter. 1 North Wealth Services LLC now owns 167 shares of the company's stock valued at $31,000 after acquiring an additional 137 shares during the last quarter. 86.50% of the stock is owned by hedge funds and other institutional investors.

RTX Company Profile

RTX NYSE: RTX is a U.S.-based aerospace and defense company that designs, manufactures and services advanced systems for commercial, military and governmental customers worldwide. The company was created through the 2020 combination of Raytheon Company and United Technologies Corporation and later adopted the RTX name, positioning itself as a diversified provider across the aerospace and defense value chain.

RTX's operations span a broad set of capabilities. Its commercial aerospace businesses include Pratt & Whitney aircraft engines and Collins Aerospace systems, which supply propulsion, avionics, aerostructures, interiors and integrated aircraft systems.

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