RTX (NYSE:RTX) Trading Up 1.8% - Should You Buy?

The stock of RTX Co. (NYSE:RTX - Get Free Report) saw an increase of 1.8% on Wednesday. It reached a high of $126.15 during the day and closed at $125.94. Around 997,476 shares were traded during the midday session, which is a significant drop of 79% compared to the average daily volume of 4,697,293 shares. The stock had closed at $123.76 on the previous day.

Analyst Upgrades and Downgrades

Recent analyst reports have focused on RTX, indicating a mix of upgraded and downgraded ratings. Bank of America raised its price target for RTX shares from $145.00 to $155.00 and maintained a "buy" rating in a research note released on January 30th. Conversely, StockNews.com downgraded RTX from a "buy" to a "hold" rating in a report issued on February 14th.

Furthermore, Royal Bank of Canada adjusted its price objective from $140.00 to $150.00 while giving it an "outperform" rating on January 29th. Vertical Research upgraded RTX to a "strong-buy" rating on January 28th, while Susquehanna set a new price target at $147.00 with a "positive" rating on the same day. Overall, there are six analysts recommending a hold, nine suggesting a buy, and two issuing strong buy ratings for the stock, leading to an average rating of "Moderate Buy" with a price target of $163.07 according to MarketBeat.com data.

RTX Financial Metrics

The company announced a trading increase of 0.6% recently. Administratively, RTX's current ratio stands at 0.99, quick ratio at 0.74, and the debt-to-equity ratio is recorded at 0.63. With a market capitalization of $165.89 billion, its price-to-earnings ratio rests at 35.17, while the PEG ratio is 2.06 and its beta is at 0.82. The fifty-day moving average for the stock is $121.03, and the 200-day moving average is $120.77.

Recent Earnings Report

On January 28th, RTX published its latest earnings report, showcasing $1.54 earnings per share, surpassing the consensus estimate of $1.35 by $0.19. The company achieved a return on equity of 12.45% and maintained a net margin of 5.91%. Analysts collectively expect RTX to report earnings of around 6.11 per share for the current fiscal year.

Dividend Announcement

In more news, RTX declared a quarterly dividend which is set to pay out on March 20th. Shareholders who are on record by February 21st will receive a dividend of $0.63 per share. This results in an annualized dividend of $2.52, reflecting a dividend yield of 2.02%. The ex-dividend date is also February 21st, and the company currently holds a payout ratio of 70.99%.

Insider Trading Activities

In insider trading news, Executive Vice President Dantaya M. Williams sold 14,031 shares of RTX on February 5th for an average price of $129.23, totaling $1,813,226.13. Post-sale, Williams retains 44,415 shares valued at approximately $5,739,750.45, which marks a 24.01% decrease in position. This transaction has been reported to the Securities and Exchange Commission.

Institutional Investors and Trading

Recently, various institutional investors and hedge funds adjusted their stakes in RTX. MidAtlantic Capital Management Inc. acquired a new stake worth around $29,000 in the third quarter, with similar investments from 10Elms LLP and Fairway Wealth LLC. Picton Mahoney Asset Management made a notable increase in their position by a whopping 2,944.4% in the fourth quarter, acquiring 274 shares and raising its stake value to $31,000. Overall, hedge funds and institutional investors collectively own 86.50% of RTX's shares.

Company Overview

RTX Corporation is a prominent player in the aerospace and defense sector, offering systems and services to commercial, military, and government clients in the United States and around the globe. The company operates through three main segments: Collins Aerospace, Pratt & Whitney, and Raytheon. The Collins Aerospace Systems sector is particularly noteworthy, providing a range of aerospace and defense products, as well as aftermarket services tailored for civil and military aircraft manufacturers.

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