RTX (NYSE:RTX) Shares Up 1.1% - Still a Buy?

Key Points

• Defense momentum is strengthening: The Pentagon signed an agreement with RTX and Boeing to increase production of SM-3 missile-interceptor components, supporting RTX’s missile-defense backlog and potential future orders.
• Recent results exceeded expectations: RTX reported quarterly EPS of $1.89 versus the $1.66 consensus and revenue of $24.71 billion, up 14.5% year over year; the company guided to fiscal 2026 EPS of $7.10–$7.25.
• Analysts remain positive, but valuation is a consideration: RTX has a consensus “Moderate Buy” rating and an average price target of $228.59, while its P/E ratio near 39 suggests the stock may be closer to fair value after its multiyear rally.

RTX Corporation (NYSE:RTX - Get Free Report) shares shot up 1.1% during mid-day trading on Friday . The stock traded as high as $223.07 and last traded at $222.8760. Approximately 2,856,125 shares changed hands during mid-day trading, a decline of 49% from the average session volume of 5,640,501 shares. The stock had previously closed at $220.48.

Key RTX News

Here are the key news stories impacting RTX this week:

• Positive Sentiment: The Pentagon signed a framework agreement with RTX and Boeing to increase production of components for SM-3 Block IIA and Block IB interceptor missiles. The deal should support RTX’s missile-defense backlog and could lead to additional orders as the U.S. replenishes stockpiles. Pentagon signs deals with Boeing and RTX to boost missile interceptor component production
• Positive Sentiment: RTX is expanding missile production and investing in advanced defense technologies as demand for precision weapons rises among the United States and its allies. This provides a favorable long-term growth outlook for the company’s Raytheon business. Is RTX Strengthening Its Position in the Global Missile Market?
• Positive Sentiment: Unusually heavy call-option activity and broader strength in domestic defense and drone stocks indicate increased speculative and institutional interest in the defense sector, potentially adding near-term support for RTX shares.
• Neutral Sentiment: Wall Street analysts remain broadly favorable toward RTX, but analyst recommendations can be overly optimistic and are not a guarantee of future performance. Wall Street Analysts Think RTX Is a Good Investment: Is It?
• Negative Sentiment: After a substantial multiyear rally, valuation checks suggest RTX is near fair value rather than clearly undervalued. With a relatively high earnings multiple, further gains may depend on converting defense demand into higher production, earnings and cash flow. RTX Stock May Be 3% Undervalued Despite Fresh Missile Defense Contract

Wall Street Analysts Forecast Growth

A number of analysts have recently weighed in on the company. Morgan Stanley restated an "overweight" rating and issued a $240.00 target price on shares of RTX in a research note on Friday, July 24th. Dbs Bank upgraded shares of RTX from a "hold" rating to a "moderate buy" rating in a research report on Wednesday, June 10th. TD Cowen raised their price objective on shares of RTX from $225.00 to $240.00 and gave the company a "buy" rating in a research report on Monday, July 27th. Argus set a $245.00 target price on shares of RTX in a research note on Thursday, July 30th. Finally, Wells Fargo & Company upped their target price on shares of RTX from $200.00 to $230.00 and gave the stock an "equal weight" rating in a research report on Friday, July 24th. One investment analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $228.59.

RTX Trading Up 1.1%

The company has a quick ratio of 0.78, a current ratio of 1.01 and a debt-to-equity ratio of 0.47. The company has a market cap of $300.38 billion, a P/E ratio of 39.24, a P/E/G ratio of 2.65 and a beta of 0.29. The business has a 50-day moving average price of $199.18 and a two-hundred day moving average price of $194.67.

RTX (NYSE:RTX - Get Free Report) last posted 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. The business had revenue of $24.71 billion for the quarter, compared to analysts' expectations of $22.89 billion. RTX had a return on equity of 13.99% and a net margin of 8.28%.The firm's quarterly revenue was up 14.5% compared to the same quarter last year. During the same quarter last year, the business earned $1.56 earnings per share. RTX has set its FY 2026 guidance at 7.100-7.250 EPS. On average, analysts predict that RTX Corporation will post 7.22 EPS for the current year.

RTX Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, September 3rd. Investors of record on Friday, August 14th will be issued a dividend of $0.73 per share. The ex-dividend date is Friday, August 14th. This represents a $2.92 dividend on an annualized basis and a yield of 1.3%. RTX's payout ratio is currently 51.41%.

Insider Activity

In other news, insider Troy D. Brunk sold 8,557 shares of the company's stock in a transaction that occurred on Friday, July 24th. The shares were sold at an average price of $210.29, for a total value of $1,799,451.53. Following the completion of the transaction, the insider owned 8,809 shares in the company, valued at $1,852,444.61. This represents a 49.27% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, VP Kevin G. Dasilva sold 2,250 shares of the 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 sale, the vice president directly owned 20,099 shares of the company's stock, valued at $4,360,076.07. This represents a 10.07% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 15,567 shares of company stock valued at $3,304,375 over the last 90 days. Corporate insiders own 0.10% of the company's stock.

Hedge Funds Weigh In On RTX

Large investors have recently added to or reduced their stakes in the company. Brighton Jones LLC boosted its position in shares of RTX by 24.3% during the fourth quarter. Brighton Jones LLC now owns 17,018 shares of the company's stock worth $1,969,000 after buying an additional 3,332 shares during the period. Revolve Wealth Partners LLC raised its position in RTX by 3.4% in the 4th quarter. Revolve Wealth Partners LLC now owns 4,873 shares of the company's stock valued at $564,000 after buying an additional 159 shares during the last quarter. United Bank raised its position in RTX by 68.0% in the 2nd quarter. United Bank now owns 10,202 shares of the company's stock valued at $1,490,000 after buying an additional 4,131 shares during the last quarter. Schnieders Capital Management LLC. lifted its stake in RTX by 3.1% in the 2nd quarter. Schnieders Capital Management LLC. now owns 20,900 shares of the company's stock valued at $3,052,000 after acquiring an additional 623 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership acquired a new position in RTX during the 2nd quarter worth approximately $5,157,000. Institutional investors own 86.50% of the company's stock.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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