RTX (NYSE:RTX) Shares Down 1.2% – Should You Sell?

RTX Corporation (NYSE:RTX)’s stock price was down 1.2% during trading on Friday. The stock traded as low as $187.71 and last traded at $189.5930. 5,016,522 shares changed hands during mid-day trading, a decline of 7% from the average daily volume of 5,394,384 shares. The stock had previously closed at $191.88.

Key Stories Impacting RTX

Here are the key news stories impacting RTX this week:

• Positive Sentiment: Defense-industry earnings point to continuing demand for both conventional weapons and newer capabilities, including air-defense systems. RTX could benefit from demand for its radars, interceptors and related systems. Article: Tanks or drones? Defense earnings reveal a more complicated rearmament boom
• Positive Sentiment: An investment article highlights RTX’s $340 billion backlog and raised 2026 free-cash-flow outlook of $9 billion to $9.2 billion, as well as investments to expand radar and missile-component capacity. These support the growth outlook, though delivery and execution remain important. Article: America’s Military Rebuild Starts With a Manufacturing Problem
• Negative Sentiment: A report linked RTX shares’ decline to insider selling, which can weigh on investor sentiment. Article: RTX Shares Down 2.7% After Insider Selling
• Negative Sentiment: ETFs sold about $39 million of RTX stock on Nov. 4, adding a source of near-term selling pressure. Article: RTX Sees $39.0 Million in Net ETF Selling
• Negative Sentiment: Defense stocks broadly came under pressure after the midterm elections, as a proposed $1.5 trillion defense budget faced uncertainty in the changed political landscape. That raises questions about future funding, although the article does not single out RTX. Article: Defense Stocks Sank as Democrats Took Congress and the $1.5 Trillion Budget Looks Doomed

Analysts Set New Price Targets

A number of brokerages have recently weighed in on RTX. DA Davidson boosted their target price on RTX from $192.00 to $219.00 and gave the stock a “neutral” rating in a research note on Monday, July 27th. Wells Fargo & Company increased their price target on RTX from $200.00 to $230.00 and gave the company an “equal weight” rating in a research report on Friday, July 24th. Argus set a $245.00 price target on RTX and gave the company a “buy” rating in a research report on Thursday, July 30th. Weiss Ratings upgraded RTX from a “buy (b)” rating to a “buy (a-)” rating in a report on Thursday, October 22nd. Finally, Robert W. Baird set a $240.00 price objective on RTX in a research report on Friday, July 24th. One equities research analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating, eight have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $231.24.

RTX Trading Down 1.2%

The company has a quick ratio of 0.81, a current ratio of 1.05 and a debt-to-equity ratio of 0.44. The firm has a market cap of $255.84 billion, a P/E ratio of 30.78, a price-to-earnings-growth ratio of 2.21 and a beta of 0.30. The firm’s 50-day simple moving average is $193.91 and its 200 day simple moving average is $195.56.

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

RTX Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Friday, November 20th will be given a dividend of $0.73 per share. This represents a $2.92 dividend on an annualized basis and a dividend yield of 1.5%. The ex-dividend date of this dividend is Friday, November 20th. RTX’s dividend payout ratio is currently 47.40%.

Insider Buying and Selling at RTX

In related news, EVP Dantaya Williams sold 9,071 shares of RTX stock in a transaction dated Friday, October 30th. The stock was sold at an average price of $201.70, for a total value of $1,829,620.70. Following the completion of the sale, the executive vice president owned 16,930 shares of the company’s stock, valued at approximately $3,414,781. This trade represents a 34.89% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, EVP Ramsaran Maharajh sold 13,655 shares of RTX stock in a transaction dated Tuesday, August 18th. The stock was 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 approximately $2,952,161.28. This trade represents a 50.88% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 0.10% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On RTX

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. BlackRock Inc. bought a new position in RTX in the 2nd quarter worth about $20,970,571,000. State Street Corp increased its position in shares of RTX by 3.1% during the second quarter. State Street Corp now owns 95,417,318 shares of the company’s stock valued at $18,103,528,000 after buying an additional 2,828,056 shares during the period. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its position in shares of RTX by 5.0% during the second 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 buying an additional 411,356 shares during the period. Dimensional Fund Advisors LP increased its position in shares of RTX by 1.3% during 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 buying an additional 95,726 shares during the period. Finally, Amundi lifted its holdings in shares of RTX by 4.0% in the second quarter. Amundi now owns 7,768,207 shares of the company’s stock worth $1,473,862,000 after buying an additional 295,964 shares in the last quarter. Institutional investors own 86.50% of the company’s stock.

RTX Company Profile

RTX Corporation is an aerospace and defense company whose businesses include Collins Aerospace, Pratt & Whitney and Raytheon. The company serves commercial aviation, military and government customers around the world.

Collins Aerospace develops aircraft systems and components, including avionics, communications, flight controls and cabin equipment. Pratt & Whitney designs and manufactures aircraft engines and provides related maintenance services. Raytheon develops defense systems and technologies, including air and missile defense, sensors and precision weapons.

RTX was formed in 2020 through the combination of Raytheon Company and United Technologies Corporation.