RTX (NYSE:RTX) Stock Down 0.8% - Should You Sell?

RTX Corporation (NYSE:RTX - Get Free Report) experienced a drop of 0.8% in its stock price during trading on Thursday. The shares fell to a low of $125.19 before recovering slightly, closing at $126.21. In total, 656,167 shares exchanged hands, a significant decline of 90% compared to the average daily volume of 6,745,125 shares. Previously, the stock closed at $127.21.

Wall Street Analysts Forecast Growth

Several brokerage firms have issued recent reports regarding RTX. For instance, Bank of America raised its rating for RTX from "neutral" to "buy," increasing the price target from $110.00 to $140.00 as of July 31. Additionally, StockNews.com upgraded RTX from a "hold" to a "buy" rating on September 6. Melius Research increased its target price for RTX from $490.00 to $493.00 on July 24, while Goldman Sachs adjusted its price target from $94.00 to $104.00 and maintained a "neutral" rating on July 29. Finally, on October 8, TD Cowen upgraded the stock to a "strong-buy" rating. Currently, one analyst has issued a sell rating, ten have rated it as a hold, five have issued buy ratings, and one has provided a strong buy rating. According to MarketBeat, the consensus rating for RTX is "Hold" with an average price target of $168.56.

RTX Stock Performance

The company's quick ratio stands at 0.73, with a current ratio of 0.99 and a debt-to-equity ratio of 0.62. Its market capitalization is approximately $167.13 billion, boasting a price-to-earnings ratio of 36.06 and a price-to-earnings-growth ratio of 2.21. The stock has maintained a 50-day simple moving average of $121.46 as well as a 200-day simple moving average of $111.02. RTX last disclosed its quarterly earnings on October 22, where it reported earnings per share (EPS) of $1.45, surpassing analysts' expectations of $1.34. The company achieved revenue of $20.09 billion during the quarter, exceeding predictions of $19.84 billion. This marked a 6.0% increase in revenue compared to the same quarter last year.

RTX Dividend Announcement

Recently, RTX announced a quarterly dividend that will be distributed on December 12. To qualify, shareholders must be on record by November 15. The dividend amount is $0.63 per share, translating to an annualized dividend of $2.52, which gives a yield of 2.01%. The ex-dividend date is also set for November 15, and the company's dividend payout ratio currently stands at 72.00%.

Insider Activity at RTX

In recent insider transactions, Shane G. Eddy, an insider, sold 6,741 shares of RTX stock on July 26 at an average price of $114.76, totaling approximately $773,597.16. This sale was reported to the Securities and Exchange Commission (SEC). Moreover, Chairman Gregory Hayes sold 134,887 shares on July 31 at an average of $117.74, resulting in a significant total of $15,881,595.38. Following this, he retains ownership of 566,723 shares valued at about $66,725,966.02, indicating a minimal decrease in his total position. Over the past three months, insiders have sold 178,333 shares valued at $20,861,880, with only 0.13% of the stock held by insiders.

Institutional Investors Weigh In On RTX

Recent trading activity indicates that hedge funds and institutional investors have been active in buying and selling RTX shares. Kavar Capital Partners Group LLC increased its stake by 4.4% in the third quarter, now holding 2,219 shares valued at approximately $269,000. TCV Trust & Wealth Management Inc. has purchased a new stake estimated at around $1,689,000 during the same period. Clear Harbor Asset Management LLC also increased its position by 1.2%, owning 86,214 shares worth about $10,446,000 after acquiring an additional 1,046 shares. Other notable increases in stake include Smith Salley Wealth Management and MCF Advisors LLC, which raised their positions by 3.0% and 2.1%, respectively. Overall, institutional investors control about 86.50% of RTX's stock.

About RTX

RTX Corporation is an aerospace and defense firm that provides various systems and services to commercial, military, and government clients both domestically and internationally. The company operates through three main segments: Collins Aerospace, Pratt & Whitney, and Raytheon. The Collins Aerospace Systems segment specializes in supplying aerospace and defense products along with aftermarket service solutions aimed at manufacturers and commercial airlines.

stocks, investment, analysis