RTX (NYSE:RTX) Stock Price Down 1.2% – What’s Next?

RTX Corporation (NYSE:RTX)’s share price dropped 1.2% on Friday. The company 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.

RTX News Roundup

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

Analyst Ratings Changes

Several equities research analysts have recently commented on the company. Morgan Stanley reissued an “overweight” rating and issued a $240.00 target price (up from $220.00) on shares of RTX in a research note on Friday, July 24th. The Goldman Sachs Group raised their price target on RTX from $195.00 to $206.00 and gave the company a “neutral” rating in a report on Monday, July 27th. Rothschild & Co Redburn raised their target price on shares of RTX from $180.00 to $215.00 and gave the company a “neutral” rating in a research note on Wednesday, July 29th. JPMorgan Chase & Co. raised their price objective on shares of RTX from $215.00 to $240.00 and gave the company an “overweight” rating in a research note on Friday, July 24th. Finally, UBS Group lifted their target price on shares of RTX from $209.00 to $212.00 and gave the stock a “neutral” rating in a report on Wednesday, October 21st. One investment analyst has rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating, eight have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $231.24.

RTX Stock Down 1.2%

The business’s 50-day moving average is $193.91 and its two-hundred day moving average is $195.56. The firm has a market capitalization of $255.84 billion, a price-to-earnings ratio of 30.78, a P/E/G ratio of 2.21 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 quarterly earnings data 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. The firm had revenue of $24.96 billion during the quarter, compared to analysts’ expectations of $24.11 billion. RTX had a net margin of 8.75% and a return on equity of 14.89%. The business’s revenue for the quarter was up 11.1% on a year-over-year basis. During the same quarter in the previous year, the company earned $1.70 earnings per share. On average, equities analysts anticipate that RTX Corporation will post 7.68 earnings per share for the current year.

RTX Announces Dividend

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

Insider Activity at RTX

In other RTX news, EVP Ramsaran Maharajh sold 13,655 shares of RTX 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 transaction, the executive vice president owned 13,184 shares of the company’s stock, valued at approximately $2,952,161.28. The trade was a 50.88% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, EVP Dantaya M. Williams sold 9,071 shares of the company’s 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 transaction, the executive vice president owned 16,930 shares of the company’s stock, valued at $3,414,781. This trade represents a 34.89% decrease in their position. The SEC filing for this sale provides additional information. 0.10% of the stock is currently owned by insiders.

Hedge Funds Weigh In On RTX

A number of large investors have recently added to or reduced their stakes in the company. Fortress Financial Group LLC purchased a new stake in RTX in the 2nd quarter valued at $358,000. Evergreen Advisors LLC bought a new stake in shares of RTX in the 1st quarter worth $31,000. Signature Resources Capital Management LLC grew its stake in shares of RTX by 111.5% in the 1st quarter. Signature Resources Capital Management LLC now owns 184 shares of the company’s stock worth $36,000 after acquiring an additional 97 shares in the last quarter. BOK Financial Private Wealth Inc. purchased a new stake in shares of RTX in the second quarter valued at about $36,000. Finally, Next Level Wealth Planning LLC purchased a new stake in shares of RTX in the third quarter valued at about $41,000. 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.