RTX Upgraded to Buy at UBS Group

On February 26, 2025, analysts at UBS Group upgraded RTX (NYSE:RTX) from a "neutral" rating to a "buy" rating in their latest report. This upgrade indicates a more positive outlook for the stock, which is reflected in a new target price set at $147.00, a rise from the previous target of $142.00. UBS Group's updated price target suggests a possible upside of 15.47% based on the stock's current price.

In addition to UBS Group, multiple other analysts have recently provided insights on RTX. For instance, Wells Fargo & Company raised their price target from $151.00 to $156.00 while also assigning an "overweight" rating to the stock in a report dated January 30. Argus followed suit by upgrading RTX from a "hold" to a "buy" rating in their February 11 report. Susquehanna also adjusted their price target from $139.00 to $147.00 while giving the stock a "positive" rating on January 29. Further supporting the positive sentiment, Bank of America increased their price objective for RTX from $145.00 to $155.00 and issued a "buy" rating on January 30. Deutsche Bank also upgraded RTX, changing their rating from "hold" to "buy" and raising the target price from $131.00 to $140.00 on January 2.

The overall analyst consensus is favorable for RTX; according to MarketBeat.com, five analysts have given the stock a hold rating, while ten have provided a buy rating, and two analysts have rated it as a strong buy. Currently, the stock holds an average rating of "Moderate Buy" with a consensus target price of $163.40.

RTX Price Performance

On the trading day following the upgrade, shares of RTX opened at $127.30. The company boasts a market capitalization of $169.58 billion, with a price-to-earnings (P/E) ratio of 35.86, and a price-to-earnings growth (P/E/G) ratio of 2.11. Additionally, its beta stands at 0.82. RTX’s stock has seen a 50-day simple moving average of $121.84 and a two-hundred-day average of $121.13. Over the past year, the stock has fluctuated between a low of $88.95 and a high of $132.43. Financially, the company has a debt-to-equity ratio of 0.63, a current ratio of 0.99, and a quick ratio of 0.74.

RTX last reported its quarterly earnings on January 28, where it revealed earnings per share (EPS) of $1.54, exceeding analyst expectations of $1.35 by $0.19. The company demonstrated a return on equity of 12.45% and a net profit margin of 5.91%. Analysts project earnings of 6.11 EPS for the current fiscal year.

Insider Trading Activity

In recent insider trading news, EVP Dantaya M. Williams sold 14,031 shares of RTX on February 5, generating approximately $1.81 million at an average price of $129.23 per share. Post-transaction, Williams retains a total of 44,415 shares, valued at about $5.74 million. This sale represents a decrease of 24.01% in Williams' holdings. The specifics of this transaction were disclosed in a filing with the SEC.

Institutional Ownership Changes

Recently, several institutional investors have made notable changes to their stakes in RTX. Norges Bank acquired a new stake valued at around $1.75 billion in the fourth quarter. T. Rowe Price Investment Management Inc. increased its holdings by 43.1%, now owning over 10.5 million shares worth approximately $1.22 billion after purchasing an additional 3.16 million shares. Amundi also significantly boosted its stake by 83.1%, owning about 6.29 million shares valued at roughly $728.96 million. Furthermore, Assenagon Asset Management S.A. raised its holdings by a substantial 545.6%, adding over 2 million shares. Overall, institutional investors hold approximately 86.50% of RTX’s shares.

About RTX

RTX Corporation is an aerospace and defense company that develops systems and services for various sectors, including commercial, military, and government customers both in the United States and internationally. Its operations are divided into three main segments: Collins Aerospace, Pratt & Whitney, and Raytheon. The Collins Aerospace Systems segment is responsible for aerospace and defense products, along with aftermarket services for both civil and military aircraft manufacturers, as well as commercial airlines.

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