RTX (NYSE:RTX) Stock Up 1.8% - Is It Time to Buy?

RTX Corporation (NYSE:RTX) saw its stock price rise by 1.8% on Wednesday, reaching a peak of $126.15 before settling at $125.94. During mid-day trading, approximately 997,476 shares were exchanged, significantly lower than the average daily volume of 4,697,293 shares. The previous closing price was $123.76.

Analyst Ratings Overview

Recent updates from analysts have brought attention to RTX’s stock. Bank of America raised its price target for RTX from $145 to $155 and issued a "buy" rating on January 30. However, StockNews.com downgraded RTX from a "buy" to a "hold" rating on February 14. On the other hand, Royal Bank of Canada increased its price target from $140 to $150 with an "outperform" rating on January 29. Vertical Research also boosted RTX’s rating to "strong buy" on January 28. Additionally, Susquehanna adjusted their price target from $139 to $147, labeling the stock as "positive" on January 29. In total, six analysts recommend holding the stock, nine suggest buying it, and two advocate a strong buy. According to MarketBeat.com, RTX has an average rating of "Moderate Buy" with a price target of $163.07.

Company Financial Metrics

RTX’s financial health shows a current ratio of 0.99, quick ratio of 0.74, and a debt-to-equity ratio of 0.63. With a market capitalization of $165.89 billion, the company has a price-to-earnings ratio of 35.17, a PEG ratio of 2.06, and a beta coefficient of 0.82. The stock's fifty-day moving average stands at $121.03, while the 200-day moving average is $120.77.

Earnings Report Insights

On January 28, RTX released its earnings report for the latest quarter, highlighting earnings per share (EPS) of $1.54, exceeding the consensus estimate of $1.35 by $0.19. The company reported a return on equity of 12.45% and a net margin of 5.91%. Analysts expect RTX to post an EPS of 6.11 for the current fiscal year.

Dividend Announcement

RTX recently announced a quarterly dividend, which is to be paid on March 20. Eligible shareholders of record by February 21 will receive a dividend of $0.63 per share, translating to an annualized dividend of $2.52 and a yield of 2.02%. The ex-dividend date will also fall on February 21, with the company’s payout ratio currently at 70.99%.

Insider Transactions

In related news, executive vice president Dantaya M. Williams sold 14,031 shares of RTX on February 5 at an average price of $129.23, culminating in a transaction value of $1,813,226.13. Post-sale, Williams retains ownership of 44,415 shares valued at approximately $5,739,750.45, marking a 24.01% decrease in her holdings. This transaction has been filed with the Securities and Exchange Commission.

Institutional Ownership Trends

Institutional investors have been active with their positions in RTX recently. MidAtlantic Capital Management acquired a new stake during the third quarter worth around $29,000. Similarly, 10Elms LLP bought into RTX in the fourth quarter, also valued near $29,000. Fairway Wealth LLC entered a new stake in RTX worth about $31,000. Notably, Picton Mahoney Asset Management substantially increased its position by 2,944.4% in the same quarter, holding 274 shares valued at $31,000 after acquiring an additional 265 shares. Hedge funds and other institutions hold a collective 86.50% of RTX's stock.

About RTX Corporation

RTX Corporation is a leading aerospace and defense company, offering a range of systems and services to both commercial and government clients globally. It operates through three primary segments: Collins Aerospace, Pratt & Whitney, and Raytheon. The Collins Aerospace Systems segment focuses on innovative aerospace and defense solutions, catering to various manufacturers from civil and military sectors to commercial airlines.

Conclusion

With recent positive analyst ratings and performance indicators, investors are contemplating whether now is the right time to invest in RTX. Market reactions and institutional support suggest a favorable outlook, but potential investors should closely monitor future developments.

RTX, Stock, Buy