RTX (NYSE:RTX) Stock Price Down 2.5% - What's Next?

Shares of RTX Co. (NYSE:RTX) experienced a decline of 2.5% during trading on Monday, dropping to a low of $121.38 before closing at $122.68. In total, around 7,714,193 shares changed hands, marking a 64% increase over the average daily volume of 4,715,731 shares. The stock had previously closed at $125.84.

Analyst Upgrades and Downgrades

RTX has captured the attention of several analysts recently. Argus upgraded its rating from "hold" to "buy" on February 11. Barclays also raised its target price from $108.00 to $130.00, rating the stock as "equal weight" on October 29. Additionally, Susquehanna set a new target of $147.00 from $139.00 and declared a "positive" rating on January 29. UBS Group increased their target price from $128.00 to $142.00 and maintained a "neutral" rating the same day. Lastly, Wells Fargo raised its target from $151.00 to $156.00, giving RTX an "overweight" rating on January 30. In total, six analysts recommend holding the stock, nine suggest buying it, and two classify it as a strong buy. The consensus rating for RTX is currently a "Moderate Buy" with an average target price of $163.07.

Key Financial Metrics

The company shows a quick ratio of 0.74, and a current ratio of 0.99, alongside a debt-to-equity ratio of 0.63. RTX's fifty-day moving average stands at $121.03 while its two-hundred-day moving average is $120.77. The firm has a market capitalization of $166.87 billion and boasts a price-to-earnings (PE) ratio of 35.29, a price-to-earnings growth (PEG) ratio of 2.06, and a beta of 0.82.

Quarterly Earnings Report

On January 28, RTX released its quarterly earnings data. The company reported earnings per share (EPS) of $1.54, surpassing analysts' expectations of $1.35 by $0.19. RTX registered a net margin of 5.91% and a return on equity of 12.45%. Analysts predict that the company will achieve an EPS of 6.11 for the current year.

Dividend Announcement

Additionally, RTX recently declared a quarterly dividend, scheduled to be paid on March 20. Shareholders on record by February 21 will receive a dividend of $0.63 per share, and the ex-dividend date is also set for February 21. This leads to an annualized dividend of $2.52, resulting in a dividend yield of 2.01% based on the current stock price. The company's dividend payout ratio (DPR) is 70.99%.

Insider Transactions

On a different note, executive vice president Dantaya M. Williams sold 14,031 shares of RTX stock on February 5 at an average price of $129.23, totaling approximately $1.81 million. After this transaction, Williams holds 44,415 shares valued at around $5.74 million, marking a decrease of 24.01% in their position. This transaction was filed with the Securities and Exchange Commission (SEC).

Institutional Investor Activity

Recent changes in stakes by institutional investors and hedge funds have been noted. For example, MidAtlantic Capital Management acquired a new stake valued at $29,000 in the third quarter. Similar investments were made by 10Elms LLP and Fairway Wealth LLC in the fourth quarter, both around $29,000. Notably, Picton Mahoney Asset Management drastically raised its holdings by 2,944.4% in the same period, now owning 274 shares after purchasing an additional 265 shares. Overall, institutional investors hold 86.50% of RTX's stock.

About RTX Corporation

RTX Corporation operates in the aerospace and defense sectors, providing systems and services to commercial, military, and government customers both domestically and internationally. Its operations are divided into three segments: Collins Aerospace, Pratt & Whitney, and Raytheon. The Collins Aerospace Systems segment specializes in aerospace and defense products as well as aftermarket service solutions for various types of aircraft, including civil, military, and commercial aviation.

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