Zacks Investment Research downgraded shares of Raytheon (NYSE:RTN) from a buy rating to a hold rating in a research note published on Monday.
According to Zacks, “Raytheon's share price outperformed the broader industry over the last one year. The company is one of the best-positioned large-cap defense players due to its non-platform centric focus. Due to its wide range of combat-proven defense products, the company continues to receive numerous orders from both Pentagon as well as foreign allies. Moreover, the company is a strong cash generator, which allows it to pay attractive dividend to shareholders. Raytheon has a distinct focus on its overseas business. Foreign military contracts continue to be the vital growth driver for Raytheon. However, factors like tough competition and political uncertainty continue to be major headwinds for Raytheon. Company’s sales from international markets are subject to country-specific risk related to political stability and regime change. The enactment of the Tax Cuts and Jobs Act of 2017 had an unfavorable provisional tax relatated impact on its bottom line.”
A number of other research firms have also commented on RTN. Royal Bank of Canada set a $225.00 price target on Raytheon and gave the stock a buy rating in a report on Thursday, November 16th. Wells Fargo & Co reaffirmed an outperform rating and issued a $202.00 price target (up from $195.00) on shares of Raytheon in a report on Tuesday, November 28th. JPMorgan Chase & Co. lowered Raytheon from an overweight rating to a neutral rating and raised their price target for the stock from $190.00 to $210.00 in a report on Tuesday, December 12th. ValuEngine raised Raytheon from a hold rating to a buy rating in a report on Sunday, December 31st. Finally, Stifel Nicolaus reaffirmed a buy rating and issued a $210.00 price target on shares of Raytheon in a report on Tuesday, January 9th. Three analysts have rated the stock with a hold rating and sixteen have assigned a buy rating to the stock. The company currently has an average rating of Buy and an average price target of $214.12.
Raytheon (NYSE:RTN) last announced its quarterly earnings data on Thursday, January 25th. The aerospace company reported $2.03 earnings per share for the quarter, beating the consensus estimate of $2.02 by $0.01. Raytheon had a return on equity of 21.36% and a net margin of 7.98%. The business had revenue of $6.78 billion during the quarter, compared to analyst estimates of $6.81 billion. During the same period in the prior year, the company earned $1.84 earnings per share. Raytheon’s revenue was up 8.0% compared to the same quarter last year. equities research analysts predict that Raytheon will post 9.66 EPS for the current year.
Raytheon announced that its Board of Directors has initiated a share buyback program on Wednesday, November 15th that allows the company to repurchase $2.00 billion in outstanding shares. This repurchase authorization allows the aerospace company to buy shares of its stock through open market purchases. Stock repurchase programs are typically a sign that the company’s board believes its stock is undervalued.
In related news, VP Frank R. Jimenez sold 175 shares of the stock in a transaction on Friday, December 29th. The stock was sold at an average price of $189.13, for a total value of $33,097.75. Following the sale, the vice president now owns 28,311 shares in the company, valued at $5,354,459.43. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Chairman Thomas A. Kennedy sold 44,778 shares of the stock in a transaction on Thursday, February 15th. The stock was sold at an average price of $215.90, for a total value of $9,667,570.20. Following the completion of the sale, the chairman now owns 138,339 shares in the company, valued at approximately $29,867,390.10. The disclosure for this sale can be found here. Insiders sold 79,400 shares of company stock worth $17,052,714 in the last quarter. 0.19% of the stock is currently owned by company insiders.
Several hedge funds have recently modified their holdings of RTN. TRUE Private Wealth Advisors purchased a new stake in shares of Raytheon in the third quarter worth $200,000. Victory Capital Management Inc. raised its position in Raytheon by 6.7% during the third quarter. Victory Capital Management Inc. now owns 21,226 shares of the aerospace company’s stock valued at $3,960,000 after purchasing an additional 1,342 shares in the last quarter. Linscomb & Williams Inc. raised its position in Raytheon by 127.2% during the third quarter. Linscomb & Williams Inc. now owns 3,940 shares of the aerospace company’s stock valued at $735,000 after purchasing an additional 2,206 shares in the last quarter. Bainco International Investors purchased a new stake in Raytheon during the third quarter valued at about $4,085,000. Finally, Weatherly Asset Management L. P. raised its position in Raytheon by 58.4% during the third quarter. Weatherly Asset Management L. P. now owns 6,253 shares of the aerospace company’s stock valued at $1,167,000 after purchasing an additional 2,306 shares in the last quarter. Institutional investors own 73.51% of the company’s stock.
Raytheon Company is a technology company, which specializes in defense and other government markets. The Company develops integrated products, services and solutions in various markets, including sensing; effects; command, control, communications, computers, cyber and intelligence; mission support, and cybersecurity.
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