RTX (NYSE:RTX) Trading Up 2.4% - Still a Buy?

The stock price of RTX Co. (NYSE:RTX) saw an increase of 2.4% on Thursday, trading as high as $130.70 before settling at $130.41. During the session, approximately 1,379,459 shares were exchanged, which reflects a significant 71% decrease from the average daily volume of 4,685,962 shares. The stock had previously closed at $127.31.

Analyst Upgrades and Downgrades

Various analysts have shared their insights regarding RTX's stock. For instance, Royal Bank of Canada raised their price target from $140.00 to $150.00, maintaining an "outperform" rating in a report dated January 29th. Meanwhile, Susquehanna adjusted their target for RTX from $139.00 to $147.00, giving the stock a "positive" rating. On January 21st, Citigroup changed their stance from "neutral" to "buy," elevating their target price from $132.00 to $153.00. Likewise, JPMorgan Chase & Co. increased their price target from $140.00 to $150.00, tagging RTX with an "overweight" rating on the same date. Wells Fargo also shifted their price objective from $151.00 to $156.00, assigning an "overweight" rating in a report released on January 30th. Overall, five analysts have given a hold rating, ten have prescribed a buy rating, and two have issued a strong buy rating, leading to an average recommendation of "Moderate Buy" and a target price of $163.40 according to data from MarketBeat.com.

RTX Financial Metrics

RTX's current financial health is indicated by several metrics: it has a quick ratio of 0.74, a current ratio of 0.99, and a debt-to-equity ratio of 0.63. The stock's 50-day moving average stands at $122.09, with a 200-day moving average at $121.17. With a market capitalization of $173.83 billion, the company shows a price-to-earnings ratio of 36.76 and a price-to-earnings-growth ratio of 2.11, alongside a beta of 0.82.

Earnings Report Highlights

On January 28th, RTX announced its quarterly earnings, reporting an earnings per share (EPS) of $1.54. This figure surpassed the consensus estimate of $1.35 by $0.19. The company registered a return on equity of 12.45% and a net margin of 5.91%. Analysts project that RTX Co. will produce an EPS of 6.11 for the current fiscal year.

Dividend Announcement

RTX also recently declared a quarterly dividend set to be paid on March 20th. Shareholders who are on record by February 21st will receive a dividend of $0.63, amounting to an annualized dividend of $2.52 and a dividend yield of 1.93%. The ex-dividend date is also February 21st, and the company's current dividend payout ratio is approximately 70.99%.

Insider Trading Activity

In other developments, Dantaya M. Williams, an executive vice president at RTX, sold 14,031 shares of stock in a transaction on February 5th, fetching $1,813,226.13 at an average price of $129.23. Post-transaction, Williams owns 44,415 shares worth about $5,739,750.45, indicating a 24.01% decrease in ownership. Similarly, insider Troy D. Brunk sold 2,872 shares on February 24th, garnering $361,728.40 at an average price of $125.95, after which he held 5,272 shares valued at $664,008.40, a 35.27% decrease in ownership. Currently, corporate insiders hold about 0.13% of the stock.

Hedge Fund Activity

Recent movements show that hedge funds have adjusted their stakes in RTX. 1620 Investment Advisors Inc. boosted its holdings by 0.7% in the fourth quarter, bringing its total to 12,110 shares valued at $1,401,000. Meanwhile, Fusion Capital LLC and McDonough Capital Management Inc. increased their positions by 0.5% and 1.6%, respectively. New England Professional Planning Group Inc. raised its holdings by 3.8%, while Pointe Capital Management LLC boosted theirs by 0.5%. As of now, approximately 86.50% of the RTX stock is held by institutional investors and hedge funds.

Company Overview

RTX Corporation, known for its aerospace and defense offerings, serves 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 delivers a variety of aerospace and defense products, alongside aftermarket service solutions tailored for civil and military aircraft manufacturers, commercial airlines, and various aviation sectors.

Conclusion

Given its recent stock performance, analyst ratings, and financial health, many investors may be wondering whether RTX should remain in their portfolios. The company's solid earnings, dividend payouts, and institutional backing paint a promising picture, but potential investors are encouraged to do further research.

RTX, Stock, Dividends