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

Shares of RTX Corporation (NYSE:RTX) dropped 1.2% during mid-day trading on Monday . The stock traded as low as $194.01 and last traded at $195.3230. 3,568,424 shares traded hands during trading, a decline of 35% from the average daily volume of 5,463,796 shares. The stock had previously closed at $197.68.

Key Stories Impacting RTX

Here are the key news stories impacting RTX this week:

• Positive Sentiment: F135 engine milestone advances F-35 program. Pratt & Whitney completed the F135 Engine Core Upgrade Risk Reduction Design Review, validating the design’s maturity and keeping the program on track to support F-35 Block 4 and later capabilities. The milestone could reinforce long-term engine revenue and aftermarket opportunities. RTX Pratt & Whitney completes F135 Engine Core Upgrade Risk Reduction Design Review
• Positive Sentiment: Defense demand and cash-flow outlook remain constructive. CEO Chris Calio said defense and aerospace demand should support cash-flow growth. RTX is also positioned to benefit from Pentagon efforts to expand production of SM-3 missile interceptors, although investors are assessing how much of that opportunity is already reflected in the valuation. RTX CEO sees defense, aerospace demand supporting cash-flow growth
• Positive Sentiment: Pratt & Whitney expands fighter-engine activity. The business signed a licensing agreement allowing Hermeus to manufacture the F100-PW-229 engine and completed the F135 upgrade design review, deepening RTX’s role in military propulsion and potentially broadening production and support revenue. RTX deepens fighter engine push
• Neutral Sentiment: Leadership transition announced at Pratt & Whitney. Jill Albertelli will become president on Jan. 1, 2027, succeeding retiring president Shane Eddy. The planned transition provides continuity, but its financial impact is unclear. RTX names Jill Albertelli as President, Pratt & Whitney
• Negative Sentiment: Valuation could limit further upside. Commentary on the Pentagon missile-production opportunity notes that some of the expected benefit may already be priced into RTX stock, making execution and cash-flow delivery important for additional gains. Boeing and RTX gain from Pentagon missile buildup

Wall Street Analysts Forecast Growth

Several equities analysts recently issued reports on RTX shares. Dbs Bank upgraded shares of RTX from a “hold” rating to a “moderate buy” rating in a report on Wednesday, June 10th. Argus set a $245.00 price target on shares of RTX in a research report on Thursday, July 30th. Robert W. Baird set a $240.00 price target on RTX in a research note on Friday, July 24th. UBS Group upped their target price on shares of RTX from $198.00 to $215.00 and gave the stock a “neutral” rating in a research note on Friday, July 24th. Finally, Morgan Stanley reiterated an “overweight” rating and set a $240.00 price target on shares of RTX in a report on Friday, July 24th. One equities research analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating, five have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $228.59.

RTX Trading Up 0.2%

The company has a debt-to-equity ratio of 0.47, a current ratio of 1.01 and a quick ratio of 0.78. The firm has a fifty day simple moving average of $208.21 and a two-hundred day simple moving average of $195.89. The firm has a market capitalization of $263.72 billion, a P/E ratio of 34.45, a price-to-earnings-growth ratio of 2.52 and a beta of 0.29.

RTX (NYSE:RTX) last issued its earnings results on Thursday, July 23rd. The company reported $1.89 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.66 by $0.23. RTX had a return on equity of 13.99% and a net margin of 8.28%.The firm had revenue of $24.71 billion for the quarter, compared to analyst estimates of $22.89 billion. During the same period in the previous year, the company posted $1.56 earnings per share. The business’s revenue was up 14.5% on a year-over-year basis. RTX has set its FY 2026 guidance at 7.100-7.250 EPS. On average, equities research analysts anticipate that RTX Corporation will post 7.22 earnings per share for the current fiscal year.

RTX Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, September 3rd. Shareholders of record on Friday, August 14th were issued a dividend of $0.73 per share. The ex-dividend date of this dividend was Friday, August 14th. This represents a $2.92 annualized dividend and a yield of 1.5%. RTX’s dividend payout ratio is 51.41%.

Insiders Place Their Bets

In related 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 completion of the transaction, the executive vice president directly owned 13,184 shares in the company, valued at approximately $2,952,161.28. The trade was a 50.88% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Troy D. Brunk sold 8,557 shares of the business’s stock in a transaction on Friday, July 24th. The shares were sold at an average price of $210.29, for a total value of $1,799,451.53. Following the sale, the insider owned 8,809 shares in the company, valued at approximately $1,852,444.61. The trade was a 49.27% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 29,222 shares of company stock worth $6,362,003 over the last quarter. 0.10% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On RTX

Hedge funds have recently bought and sold shares of the company. Bouchey Financial Group Ltd. grew its stake in RTX by 7.1% during the 2nd quarter. Bouchey Financial Group Ltd. now owns 2,904 shares of the company’s stock valued at $551,000 after purchasing an additional 193 shares during the last quarter. Capstone Financial Advisors Inc. purchased a new position in RTX in the 2nd quarter valued at $260,000. MCF Advisors LLC boosted its holdings in shares of RTX by 4.0% during the 2nd quarter. MCF Advisors LLC now owns 15,111 shares of the company’s stock worth $2,867,000 after purchasing an additional 584 shares during the last quarter. National Pension Service grew its holdings in shares of RTX by 3.6% in the second quarter. National Pension Service now owns 2,929,485 shares of the company’s stock valued at $555,811,000 after purchasing an additional 101,496 shares during the period. Finally, M.E. Allison & CO. Inc. grew its position in RTX by 6.9% in the second quarter. M.E. Allison & CO. Inc. now owns 1,754 shares of the company’s stock worth $333,000 after acquiring an additional 113 shares during the period. Hedge funds and other institutional investors own 86.50% of the company’s stock.

About RTX

RTX Corporation (NYSE:RTX) is an aerospace and defense company that develops and manufactures systems, products and services for commercial aviation, business aviation and government customers. Its offerings include aircraft engines, avionics, flight-control systems, cabin interiors, communications equipment, radar, air and missile defense systems, precision weapons and cybersecurity solutions.

The company operates through three principal businesses: Collins Aerospace, which provides aerospace systems and components; Pratt & Whitney, which designs and manufactures aircraft engines and provides related maintenance services; and Raytheon, which develops integrated defense systems, sensors, missiles and other mission technologies.