Unusual Options Trading Activity in RTX Co. (NYSE:RTX)

RTX Co. (NYSE:RTX) experienced a significant surge in options trading activity on Wednesday, as investors purchased a total of 20,216 call options. This figure marks an increase of around 54% when compared to the average daily volume of 13,110 call options.

Insider Transactions at RTX

In related developments, Dantaya M. Williams, the Executive Vice President of RTX, sold 14,031 shares of the company's stock on February 5th. The shares were sold at an average price of $129.23, leading to a total transaction value of $1,813,226.13. Following this transaction, Williams possesses 44,415 shares of RTX, which are currently valued at about $5,739,750.45. This sale reflects a 24.01% reduction in their holdings. The transaction details were disclosed in a filing with the SEC, which can be reviewed for further insight. Notably, insiders hold 0.13% of the company's stock.

Institutional Investors' Activities

Several hedge funds and institutional investors have been active in the RTX market recently. MidAtlantic Capital Management Inc. acquired a new stake in RTX during the third quarter, estimated at around $29,000. Similarly, 10Elms LLP and Fairway Wealth LLC bought new shares valued at approximately $29,000 and $31,000 respectively in the fourth quarter. Notably, Picton Mahoney Asset Management drastically increased its stake by 2,944.4% during the same quarter, resulting in ownership of 274 shares, valued at $31,000 after acquiring an additional 265 shares. Greenline Partners LLC also entered the RTX market with a new investment worth about $34,000. Overall, institutional investors currently control a significant 86.50% of the company's stocks.

RTX Stock Performance

During mid-day trading on Wednesday, RTX shares rose by 2.1%, climbing $2.65 to reach a price of $126.41. The trading volume for the day stood at 1,648,614 shares, significantly lower than the average volume of 4,716,549. Over the past year, RTX has seen a low of $88.90 and a high of $132.43. The current financial metrics show a current ratio of 0.99, quick ratio of 0.74, and a debt-to-equity ratio of 0.63. The 50-day moving average for the stock is $121.03, while the 200-day moving average is $120.77. RTX has a market capitalization of $168.39 billion and a price-to-earnings (PE) ratio of 35.61, alongside a price-to-earnings-growth (PEG) ratio of 2.06 and a beta of 0.82.

In its most recent quarterly earnings report released on January 28th, RTX reported earnings of $1.54 per share, surpassing analysts' expectations, which had called for a consensus of $1.35. The company achieved a net margin of 5.91% and a return on equity of 12.45%. Analysts project that RTX will earn approximately $6.11 per share for the current fiscal year.

Dividend Declaration

RTX has also announced a quarterly dividend to be distributed on March 20th. Shareholders who are on record as of February 21st will receive a dividend of $0.63 per share. This translates to an annualized dividend yield of 1.99%, with an expected payout ratio currently standing at 70.99%.

Analyst Ratings and Forecasts

A number of financial analysts have issued ratings for RTX shares. Susquehanna recently increased their price target for RTX from $139.00 to $147.00 while giving it a positive outlook. Deutsche Bank upgraded its rating from hold to buy, lifting the price objective from $131.00 to $140.00. Vertical Research rated RTX as a strong buy, and Morgan Stanley raised their price target from $130.00 to $135.00, maintaining an equal weight rating. Barclays also increased RTX's price platform from $108.00 to $130.00 while issuing an equal weight rating. Overall, six analysts have given a hold rating, nine issued a buy rating, and two designated it as a strong buy. RTX currently holds an average rating of "Moderate Buy" and a projected target average price of $163.07.

About RTX Corporation

RTX Corporation is a leading aerospace and defense company that serves commercial, military, and government clients both in the United States and globally. The company operates through three main segments: Collins Aerospace, Pratt & Whitney, and Raytheon. The Collins Aerospace segment specializes in providing aerospace and defense products, as well as aftermarket services for a variety of aircraft types, including civil and military manufacturers, commercial airlines, and those involved in defense and commercial space operations.

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