Raytheon Technologies Corporation (NYSE: RTX) stock jumped 3.35% on Tuesday to $99.47 against a previous-day closing price of $96.25. With 8.3 million shares changed hands, the volume of the stock remained heavier than its average volume of 4.61 million shares. During the session, the Aerospace & Defense company that operates in wider Industrials sector, reached to the highest price of $108.84 whereas the lowest price it dropped to was $94.02. The 52-week range on RTX shows that it touched its highest point at $106.02 and its lowest point at $80.27 during that stretch. It currently has a 1-year price target of $106.86. With its current market cap of 146.04 billion, RTX has annualized dividend of $2.20 while the current yield stands at 2.21%. Beta for the stock currently stands at 1.09.
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 up-trending over the past week, with a rise of 1.06%, but this was down by -0.29% over a month. Three-month performance surged to 12.34% while six-month performance rose 5.18%. The stock gained 14.06% in the past year, while it has lost -1.44% so far this year. A look at the trailing 12-month EPS for RTX yields 3.00 with Next year EPS estimates of 5.02. For the next quarter, that number is 1.24. This implies an EPS growth rate of 212.80% for this year and 5.70% for next year. EPS is expected to grow by 11.88% 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, 1.47 billion RTX shares are outstanding with a float of 1.47 billion shares on hand for trading. On Oct 13, 2022, short shares totaled 7.28 million, which was 0.49% higher than short shares on Sep 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 81.33% of RTX’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 44.82% of RTX, in contrast to 35.95% 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 128,948,572 shares worth 128,948,572. A second-largest stockholder of RTX, The Vanguard Group, Inc., holds 117,351,204 shares, controlling over 7.98% of the firm’s shares. Capital Research & Management Co is the third largest shareholder in RTX, holding 77,791,005 shares or 5.29% stake. With a 3.04% stake in RTX, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 44,697,254 shares are owned by the mutual fund manager. The Vanguard 500 Index Fund, which owns about 2.31% of RTX stock, is the second-largest Mutual Fund holder. It holds 33,980,919 shares valued at 3.43 billion. American Funds Investment Company holds 1.60% of the stake in RTX, owning 23,446,146 shares worth 2.37 billion.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for RTX since 24 analysts follow the stock currently. There are 11 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 9 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 $120.00 and a low target of $94.10, the average target price over the next 12 months is $108.74. Based on these targets, RTX could surge 20.64% to reach the target high and fall by -5.4% to reach the target low. Reaching the average price target will result in a growth of 9.32% 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 2023 earnings on 01/23/2024. Analysts have provided yearly estimates in a range of $5.29 being high and $4.68 being low. For RTX, this leads to a yearly average estimate of $5.03. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Raytheon Technologies Corporation surprised analysts by $0.07 when it reported $1.21 EPS against a consensus estimate of $1.14. The surprise factor in the prior quarter was $0.04. Based on analyst estimates, the high estimate for the next quarter is $1.27 and the low estimate is $1.06. The average estimate for the next quarter is thus $1.13.
Summary of Insider Activity:
Insiders traded RTX stock several times over the past three months with 6 Buys and 11 Sells. In these transactions, 88,707 shares were bought while 79,246 shares were sold. The number of buy transactions has increased to 34 while that of sell transactions has risen to 53 over the past year. The total number of shares bought during that period was 459,001 while 283,537 shares were sold.