RTX (NYSE:RTX) Stock Price Declines 0.8% - Should Investors Take Action?

RTX Co. (NYSE:RTX) experienced a decrease of 0.8% in its share price during the trading session on Thursday. The stock hit a low of $125.19 before finishing the day at $126.21. A total of 656,167 shares were exchanged during this period, marking a significant drop of 90% compared to the average volume of 6,745,125 shares. The previous close for the stock was $127.21.

Analysts Project Positive Growth

Many brokerage firms have released analyses regarding RTX. Recently, Bank of America upgraded RTX from a 'neutral' to a 'buy' rating, increasing their price target from $110.00 to $140.00 in a publication dated July 31st. Additionally, StockNews.com raised their rating from 'hold' to 'buy' on September 6th. Melius Research elevated their price target from $490.00 to $493.00 on July 24th. Furthermore, Goldman Sachs increased its price target from $94.00 to $104.00, while maintaining a 'neutral' stance. TD Cowen has also classified RTX as a 'strong-buy' as of October 8th. Overall, one analyst has issued a sell rating, ten have given it a hold rating, five have issued buy ratings, and one has designated it as a strong buy. According to MarketBeat, the stock currently holds a consensus rating of 'Hold' with an average price target of $168.56.

Performance Metrics of RTX Stock

The company maintains a quick ratio of 0.73, a current ratio of 0.99, and a debt-to-equity ratio of 0.62. With a market capitalization of $167.13 billion, the stock has a price-to-earnings (P/E) ratio of 36.06, a price-to-earnings-growth (PEG) ratio of 2.21, and a beta of 0.82. Its 50-day simple moving average stands at $121.46, while the 200-day average is $111.02.

Latest Earnings Report

RTX's recent quarterly earnings were reported on October 22nd, showing an earnings per share (EPS) of $1.45. This figure surpassed analysts' expectations of $1.34 by $0.11. The company achieved a return on equity of 11.96% and a net margin of 5.97%, with revenues reaching $20.09 billion, exceeding expected revenues of $19.84 billion. This represents a 6.0% increase compared to the same quarter from the previous year, where the EPS was $1.25. Analysts collectively predict that RTX will report an EPS of $5.50 for the current fiscal year.

Dividend Information

RTX recently announced a quarterly dividend, which will be disbursed on December 12th. Shareholders on record by November 15th will receive a dividend of $0.63 per share, amounting to an annualized dividend of $2.52, resulting in a yield of 2.01%. The ex-dividend date is also set for November 15th, with a dividend payout ratio currently at 72.00%.

Insider Transactions

In recent insider activity, Shane G. Eddy sold 6,741 shares on July 26th for an average price of $114.76, totaling approximately $773,597. Meanwhile, Chairman Gregory Hayes divested 134,887 shares on July 31st at an average price of $117.74, summing to around $15,881,595.38. Following this transaction, Hayes retains 566,723 shares valued at about $66.73 million. In total, 178,333 shares have been sold by insiders over the last three months, with insiders holding only 0.13% of the stock.

Institutional Stake Activity

Recent movements among institutional investors show various changes in their holdings of RTX shares. Kavar Capital Partners Group LLC raised its stake by 4.4% in the third quarter, owning 2,219 shares valued at $269,000 after acquiring additional shares. TCV Trust & Wealth Management Inc. also took a new position in RTX with an estimated value of $1.69 million. Other investors such as Clear Harbor Asset Management LLC, Smith Salley Wealth Management, and MCF Advisors LLC have all made slight boosts in their holdings. Notably, institutional investors currently control 86.50% of RTX's stock.

About RTX Corporation

RTX Corporation is a prominent aerospace and defense firm providing various systems and services aimed at commercial, military, and government clients within the U.S. and globally. The company operates through three main segments: Collins Aerospace, Pratt & Whitney, and Raytheon. The Collins Aerospace Systems segment supplies aerospace and defense products along with aftermarket services for civil and military aircraft and commercial airlines.

Conclusion

Given the recent changes in RTX's stock price and the sentiments from analysts, investors may be contemplating whether to hold, buy, or sell their shares. As the market continues to evolve, staying informed is crucial.

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