Raytheon Technologies Corporation (NYSE: RTX) stock fell -1.03% on Friday to $83.45 against a previous-day closing price of $84.32. With 4.93 million shares changed hands, the volume of the stock remained heavier than its average volume of 4.49 million shares. During the session, the Aerospace & Defense company that operates in wider Industrials sector, reached to the highest price of $84.53 whereas the lowest price it dropped to was $83.20. The 52-week range on RTX shows that it touched its highest point at $106.02 and its lowest point at $79.00 during that stretch. It currently has a 1-year price target of $109.78. With its current market cap of 123.81 billion, RTX has annualized dividend of $2.20 while the current yield stands at 2.64%. Beta for the stock currently stands at 1.12.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of RTX was down-trending over the past week, with a drop of -2.52%, but this was down by -9.72% over a month. Three-month performance dropped to -9.06% while six-month performance fell -17.56%. The stock lost -2.13% in the past year, while it has lost -3.03% so far this year. A look at the trailing 12-month EPS for RTX yields 2.99 with Next year EPS estimates of 5.58. For the next quarter, that number is 1.15. This implies an EPS growth rate of 212.80% for this year and 18.74% for next year. EPS is expected to grow by 13.50% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -15.90%.
Float and Shares Shorts:
At present, 1.48 billion RTX shares are outstanding with a float of 1.48 billion shares on hand for trading. On Jul 14, 2022, short shares totaled 11.32 million, which was 0.76% higher than short shares on Jun 14, 2022. In addition to Mr. Gregory J. Hayes as the firm’s Chairman, Pres & CEO, Mr. Neil G. Mitchill Jr. serves as its Exec. VP & CFO.
Through their ownership of 81.57% of RTX’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 44.85% of RTX, in contrast to 36.26% held by mutual funds. Shares owned by individuals account for 0.11%. As the largest shareholder in RTX with 8.77% of the stake, SSgA Funds Management, Inc. holds 129,549,992 shares worth 129,549,992. A second-largest stockholder of RTX, The Vanguard Group, Inc., holds 116,527,712 shares, controlling over 7.89% of the firm’s shares. Capital Research & Management Co is the third largest shareholder in RTX, holding 74,865,457 shares or 5.07% stake. With a 2.98% stake in RTX, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 44,008,123 shares are owned by the mutual fund manager. The Vanguard 500 Index Fund, which owns about 2.25% of RTX stock, is the second-largest Mutual Fund holder. It holds 33,190,047 shares valued at 2.98 billion. American Funds Investment Company holds 1.66% of the stake in RTX, owning 24,510,413 shares worth 2.2 billion.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for RTX since 22 analysts follow the stock currently. There are 11 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 7 believe that the stock is worth HOLDING, 4 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With RTX analysts setting a high price target of $124.00 and a low target of $90.00, the average target price over the next 12 months is $109.53. Based on these targets, RTX could surge 48.59% to reach the target high and rise by 7.85% to reach the target low. Reaching the average price target will result in a growth of 31.25% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. RTX will report FY 2022 earnings on 01/24/2023. Analysts have provided yearly estimates in a range of $4.76 being high and $4.55 being low. For RTX, this leads to a yearly average estimate of $4.69. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Raytheon Technologies Corporation surprised analysts by $0.04 when it reported $1.16 EPS against a consensus estimate of $1.12. The surprise factor in the prior quarter was $0.14. Based on analyst estimates, the high estimate for the next quarter is $1.21 and the low estimate is $1.07. The average estimate for the next quarter is thus $1.15.
Summary of Insider Activity:
Insiders traded RTX stock several times over the past three months with 0 Buys and 0 Sells. In these transactions, 0 shares were bought while 0 shares were sold. The number of buy transactions has increased to 25 while that of sell transactions has risen to 42 over the past year. The total number of shares bought during that period was 371,867 while 273,557 shares were sold.