RTX (NYSE:RTX) Stock Price Up 1.5% – Here’s Why

RTX Corporation (NYSE:RTX)’s stock price shot up 1.5% on Monday. The company traded as high as $203.07 and last traded at $202.8030. 4,267,605 shares traded hands during trading, a decline of 21% from the average session volume of 5,391,162 shares. The stock had previously closed at $199.80.

RTX News Summary

Here are the key news stories impacting RTX this week:

• Positive Sentiment: Raytheon won a phase-one DARPA contract to develop all-optical signal processing intended to help military operators detect and respond to threats faster. It adds to RTX’s technology pipeline, although the initial award is an early-stage development contract and no contract value was reported. Article: RTX’s Raytheon to develop new optical signal processing capability
• Positive Sentiment: An InvestorPlace commentary pointed to potential demand for Patriot systems, radars and other air-defense equipment as countries expand defenses. RTX’s large backlog and investments to increase production capacity support the opportunity, but delivery and cash-generation execution remain important. Article: America’s Military Rebuild Starts With a Manufacturing Problem
• Negative Sentiment: Political shifts following the midterm elections are creating a headwind for defense shares. Coverage said the prospect of a “blue wave” is boosting the broader market but dragging down defense stocks, offering a likely explanation for RTX’s weakness. Article: RTX and Other Defense Stocks Have a Midterm Headache
• Negative Sentiment: EVP Dantaya Williams sold 9,071 RTX shares, reducing her direct holdings by about 35%. The sale may weigh on sentiment, though the filing does not state her reason for selling. SEC filing for the insider transaction

Wall Street Analysts Forecast Growth

Several research analysts have issued reports on the company. Argus set a $245.00 price target on RTX and gave the company a “buy” rating in a report on Thursday, July 30th. Citigroup reiterated a “buy” rating on shares of RTX in a research report on Wednesday, October 7th. Susquehanna lifted their price target on RTX from $235.00 to $245.00 and gave the stock a “positive” rating in a research note on Friday, July 24th. Barclays boosted their price objective on RTX from $223.00 to $235.00 and gave the stock an “overweight” rating in a report on Wednesday, October 21st. Finally, Weiss Ratings upgraded RTX from a “buy (b)” rating to a “buy (a-)” rating in a report on Thursday, October 22nd. One investment analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating, eight have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $231.24.

RTX Stock Performance

The firm’s 50 day simple moving average is $194.55 and its 200-day simple moving average is $195.62. The company has a market capitalization of $267.56 billion, a price-to-earnings ratio of 27.25, a P/E/G ratio of 2.27 and a beta of 0.30. The company has a debt-to-equity ratio of 0.44, a quick ratio of 0.81 and a current ratio of 1.05.

RTX (NYSE:RTX) last issued its earnings results on Tuesday, October 20th. The company reported $2.26 EPS for the quarter, topping the consensus estimate of $1.78 by $0.48. RTX had a return on equity of 14.89% and a net margin of 8.75%. The business had revenue of $24.96 billion during the quarter, compared to analysts’ expectations of $24.11 billion. During the same quarter last year, the firm posted $1.70 earnings per share. RTX’s revenue was up 11.1% compared to the same quarter last year. Analysts expect that RTX Corporation will post 7.68 EPS for the current year.

RTX Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, December 10th. Shareholders of record on Friday, November 20th will be given a dividend of $0.73 per share. The ex-dividend date is Friday, November 20th. This represents a $2.92 dividend on an annualized basis and a yield of 1.5%. RTX’s dividend payout ratio (DPR) is presently 47.40%.

Insider Activity

In other news, EVP Ramsaran Maharajh sold 13,655 shares of the 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 completion of the sale, the executive vice president directly owned 13,184 shares of the company’s stock, valued at $2,952,161.28. This represents a 50.88% 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 Dantaya M. Williams sold 9,071 shares of the firm’s stock in a transaction that occurred on Friday, October 30th. The stock was sold at an average price of $201.70, for a total transaction of $1,829,620.70. Following the sale, the executive vice president owned 16,930 shares of the company’s stock, valued at approximately $3,414,781. This represents a 34.89% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders own 0.10% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the stock. Pine Valley Investments Ltd Liability Co boosted its position in RTX by 63.2% during the first quarter. Pine Valley Investments Ltd Liability Co now owns 33,877 shares of the company’s stock valued at $6,535,000 after purchasing an additional 13,118 shares during the last quarter. Rokos Capital Management LLP grew its stake in RTX by 804.3% in the first quarter. Rokos Capital Management LLP now owns 556,152 shares of the company’s stock valued at $107,265,000 after purchasing an additional 494,652 shares in the last quarter. Legal & General Group Plc acquired a new position in RTX in the 2nd quarter worth about $1,267,256,000. Eastern Bank increased its position in RTX by 112.0% in the 3rd quarter. Eastern Bank now owns 177,392 shares of the company’s stock worth $32,933,000 after purchasing an additional 93,725 shares during the last quarter. Finally, Corient Private Wealth LP increased its position in RTX by 2,669.1% in the 2nd quarter. Corient Private Wealth LP now owns 1,399,904 shares of the company’s stock worth $265,604,000 after purchasing an additional 1,349,350 shares during the last quarter. Institutional investors and hedge funds own 86.50% of the company’s stock.

About RTX

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.