RTX (NYSE:RTX) Stock Price Down 2.2% After Insider Selling

Key Points

• RTX shares fell 2.2% to about $220.48 after Executive Vice President Ramsaran Maharajh sold 13,655 shares for approximately $3.06 million, reducing his direct stake by 50.88%.
• Analysts remain broadly optimistic, with a consensus “Moderate Buy” rating and an average price target of $228.59. RTX recently exceeded quarterly earnings and revenue expectations and raised its full-year outlook.
• Raytheon secured a reported $22.9 billion, seven-year U.S. Navy Tomahawk contract, strengthening RTX’s defense backlog and long-term revenue visibility, though the stock trades near its 52-week high at roughly 39 times earnings.

RTX Corporation (NYSE:RTX - Get Free Report)'s stock price dropped 2.2% on Wednesday after an insider sold shares in the company. The company traded as low as $220.22 and last traded at $220.4820. Approximately 5,975,228 shares changed hands during mid-day trading, an increase of 6% from the average session volume of 5,648,113 shares. The stock had previously closed at $225.49.

Specifically, EVP Ramsaran Maharajh sold 13,655 shares of the firm's stock in a transaction on Tuesday, August 18th. The shares were sold at an average price of $223.92, for a total transaction of $3,057,627.60. Following the transaction, the executive vice president directly owned 13,184 shares of the company's stock, valued at approximately $2,952,161.28. This trade represents a 50.88% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at the SEC website.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently weighed in on RTX shares. Royal Bank Of Canada increased their target price on shares of RTX from $230.00 to $250.00 and gave the stock an "outperform" rating in a research note on Friday, July 24th. TD Cowen lifted their target price on RTX from $225.00 to $240.00 and gave the company a "buy" rating in a research note on Monday, July 27th. UBS Group increased their price target on RTX from $198.00 to $215.00 and gave the stock a "neutral" rating in a report on Friday, July 24th. Weiss Ratings cut shares of RTX from a "buy (b)" rating to a "buy (b-)" rating in a research note on Tuesday, August 11th. Finally, Susquehanna raised their target price on shares of RTX from $235.00 to $245.00 and gave the stock a "positive" rating in a research note on Friday, July 24th. One research 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 issued a Sell rating to the company's stock. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average price target of $228.59.

RTX News Roundup

Here are the key news stories impacting RTX this week:

• Positive Sentiment: Raytheon, RTX’s defense unit, won a reported $22.9 billion, seven-year U.S. Navy Tomahawk contract. The agreement is expected to increase production from roughly 60 missiles annually to more than 1,000, improving long-term revenue visibility and supporting RTX’s defense backlog. RTX Stock Gets a Radar Lock on a $23B Navy Win
• Positive Sentiment: The contract adds to recently strong fundamentals: RTX exceeded second-quarter earnings and revenue estimates, raised its full-year outlook, and continues to benefit from defense spending and commercial aerospace demand. RTX Lands $22.9 Billion Tomahawk Deal
• Positive Sentiment: A new industry report projects continued growth in commercial aircraft inflight-entertainment and connectivity systems, including opportunities from Asia-Pacific fleet expansion, narrowbody aircraft and premium-cabin retrofits. RTX is identified as a key market participant. Commercial Aircraft Inflight Entertainment and Connectivity Systems Market Report
• Neutral Sentiment: Analyst coverage presents RTX as a high-quality aerospace and defense company, but comparisons with Embraer and other industrial stocks suggest investors may find better value elsewhere. EMBJ or RTX: Which Is the Better Value Stock Right Now?
• Negative Sentiment: RTX shares trade near their 52-week high at a valuation of roughly 39 times earnings. Commentary notes that the stock has lagged the broader market over the past six months, while some investors question whether the strong defense news is already priced in. 2 Reasons to Like RTX and 1 to Stay Skeptical

RTX Stock Performance

The company has a debt-to-equity ratio of 0.47, a current ratio of 1.01 and a quick ratio of 0.78. The stock has a market capitalization of $297.16 billion, a PE ratio of 38.82, a P/E/G ratio of 2.65 and a beta of 0.29. The stock has a 50 day moving average of $201.77 and a two-hundred day moving average of $195.20.

RTX (NYSE:RTX - Get Free Report) last released its quarterly earnings data on Thursday, July 23rd. The company reported $1.89 earnings per share (EPS) for the quarter, topping 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 firm had revenue of $24.71 billion during the quarter, compared to analysts' expectations of $22.89 billion. During the same quarter in the prior year, the business posted $1.56 earnings per share. RTX's revenue was up 14.5% compared to the same quarter last year. RTX has set its FY 2026 guidance at 7.100-7.250 EPS. Research analysts expect that RTX Corporation will post 7.22 EPS for the current fiscal year.

RTX Announces Dividend

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

Hedge Funds Weigh In On RTX

Large investors have recently made changes to their positions in the stock. Brighton Jones LLC grew its holdings in shares of RTX by 24.3% in the 4th quarter. Brighton Jones LLC now owns 17,018 shares of the company's stock worth $1,969,000 after acquiring an additional 3,332 shares during the period. Revolve Wealth Partners LLC raised its holdings in RTX by 3.4% during the fourth quarter. Revolve Wealth Partners LLC now owns 4,873 shares of the company's stock worth $564,000 after purchasing an additional 159 shares during the last quarter. United Bank boosted its position in RTX by 68.0% during the second quarter. United Bank now owns 10,202 shares of the company's stock worth $1,490,000 after purchasing an additional 4,131 shares in the last quarter. Schnieders Capital Management LLC. boosted its position in RTX by 3.1% during the second quarter. Schnieders Capital Management LLC. now owns 20,900 shares of the company's stock worth $3,052,000 after purchasing an additional 623 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership acquired a new stake in RTX in the second quarter valued at $5,157,000. Hedge funds and other 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.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source