RTX (NYSE:RTX) Stock Jumps 2.1% – Here’s Why

RTX Corporation (NYSE:RTX)’s share price shot up 2.1% on Tuesday. The stock traded as high as $201.25 and last traded at $200.3880. 3,684,266 shares were traded during mid-day trading, a decline of 32% from the average session volume of 5,381,978 shares. The stock had previously closed at $196.31.

Key RTX News

Here are the key news stories impacting RTX this week:

• Positive Sentiment: Raytheon completed a third successful flight test of its DeepStrike JR3 training rocket for the U.S. Army. The test supports progress on a system intended to replace the Army’s existing practice rocket, though it does not itself confirm a production contract. Raytheon advances Joint Reduced Range Rocket with third successful flight test
• Positive Sentiment: A report says RTX plans to increase production of Tomahawk and AMRAAM missiles as much as fourfold by 2030. The plan points to potential growth in defense output amid demand, but the article does not establish that all of the planned capacity is backed by new orders. Tomahawk, AMRAAM missiles could see fourfold production surge by 2030 under RTX plan
• Positive Sentiment: Zacks added RTX to its Rank #1 (Strong Buy) lists, including its income-stock list—an encouraging, though not company-specific, analyst signal. New Strong Buy Stocks for November 10th
• Neutral Sentiment: A valuation analysis notes RTX’s 154.1% three-year return and asks whether expected cash flows justify its current valuation. The headline raises a valuation question but does not provide enough detail here to establish a clear near-term catalyst. Is RTX Still Near Fair Value After New Defense Wins?

Wall Street Analysts Forecast Growth

RTX has been the topic of a number of recent analyst reports. Deutsche Bank Aktiengesellschaft lowered RTX from a “buy” rating to a “hold” rating and set a $208.00 target price on the stock. in a research report on Tuesday, October 13th. JPMorgan Chase & Co. upped their target price on RTX from $215.00 to $240.00 and gave the stock an “overweight” rating in a research report on Friday, July 24th. Jefferies Financial Group set a $250.00 price objective on shares of RTX and gave the company a “buy” rating in a research note on Sunday, July 26th. Argus set a $245.00 price objective on shares of RTX and gave the stock a “buy” rating in a report on Thursday, July 30th. Finally, BNP Paribas Exane raised their target price on RTX from $220.00 to $265.00 and gave the company an “outperform” rating in a report on Friday, July 24th. One equities research analyst has rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating, eight have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $231.24.

RTX Stock Up 2.1%

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 company has a market capitalization of $270.41 billion, a price-to-earnings ratio of 32.53, a P/E/G ratio of 2.21 and a beta of 0.30. The business has a fifty day simple moving average of $193.15 and a two-hundred day simple moving average of $195.52.

RTX (NYSE:RTX) last posted its earnings results on Tuesday, October 20th. The company reported $2.26 earnings per share (EPS) for the quarter, beating 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 during the quarter, compared to analysts’ expectations of $24.11 billion. During the same quarter in the previous year, the company posted $1.70 earnings per share. RTX’s quarterly revenue was up 11.1% compared to the same quarter last year. Equities analysts expect that RTX Corporation will post 7.68 EPS for the current year.

RTX Announces Dividend

The business 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 $0.73 dividend. This represents a $2.92 annualized dividend and a yield of 1.5%. The ex-dividend date is Friday, November 20th. RTX’s dividend payout ratio (DPR) is presently 47.40%.

Insider Activity at RTX

In other news, EVP Ramsaran Maharajh sold 13,655 shares of the firm’s stock in a transaction on 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 transaction, the executive vice president directly owned 13,184 shares in the company, valued at $2,952,161.28. This trade represents a 50.88% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, EVP Dantaya M. Williams sold 9,071 shares of the stock in a transaction that occurred on Friday, October 30th. The shares were sold at an average price of $201.70, for a total transaction of $1,829,620.70. Following the completion of the sale, the executive vice president owned 16,930 shares in the company, valued at $3,414,781. This represents a 34.89% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 0.10% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in RTX. BlackRock Inc. acquired a new position in RTX during the second quarter worth $20,970,571,000. Bank of New York Mellon Corp acquired a new stake in RTX during the 2nd quarter worth approximately $1,456,256,000. Legal & General Group Plc acquired a new position in shares of RTX in the second quarter valued at about $1,267,256,000. Deutsche Bank AG acquired a new stake in shares of RTX in the second quarter valued at approximately $725,900,000. Finally, Mitsubishi UFJ Asset Management Co. Ltd. bought a new position in RTX during the 2nd quarter worth $636,932,000. Institutional investors and hedge funds 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.