Raytheon Technologies Corporation (NYSE: RTX): Stock That Needs Special Handling

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SSgA Funds Management, Inc. recently announced the acquisition of new stake in Raytheon Technologies Corporation (NYSE:RTX). The institutional investor has increased its shareholding in the Industrials company by 7.94% to 127.18 million shares with purchase of 9.35 million shares. This fresh investment now brings its stake to 8.32% valued currently at $7.21 billion. In addition, The Vanguard Group, Inc. raised its holdings by 0.58 million to 122.0 million shares. And Wellington Management Co. LLP has lifted its position by 22.24% or 7.95 million shares – to 43.69 million shares.

With over 7.06 million Raytheon Technologies Corporation (RTX) shares trading Friday and a closing price of $60.27 on the day, the dollar volume was approximately $425.64 million. The shares have shown a negative weekly performance of -5.30% and its price on 08/21/20 lost nearly -1.18%. Currently, there are 1.50B common shares owned by the public and among those 1.37B shares have been available to trade.

An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 19 analysts who have offered their price forecasts for RTX have a consensus price objective of $78.25. The analysts have set the share’s price value over the next 12 months at a high of $101.00 and a low of $62.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Raytheon Technologies Corporation stock is 2.10 for the next 12 months. The average price target is 22.61% above its last price level and an upside to the estimated low will see the stock gain 2.79% over that period. But an upside of 40.33% will see the stock hit the forecast high price target while mean target price for the stock is $80.00.

Insiders at the company have transacted a total of 147 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 62 of these insider trades were purchases, accounting for 1,717,447 shares. Insider sales of the common stock occurred on 85 occasions, with total insider shares sold totaling 891,326 shares.

The top 3 mutual fund holders in Raytheon Technologies Corporation are Vanguard Total Stock Market Index, Vanguard 500 Index Fund, and American Funds Investment Company. Vanguard Total Stock Market Index owns 43.11 million shares of the company’s stock, all valued at over $2.44 billion. The company sold -0.11 million shares recently to bring their total holdings to about 2.82% of the shares outstanding. Vanguard 500 Index Fund sold -0.18 million shares to see its total holdings shrink to 30.33 million shares valued at over $1.72 billion and representing 1.99% of the shares outstanding. American Funds Investment Company bought 6.41 million shares to bring its total holdings to over 15.93 million shares at a value of $902.78 million. American Funds Investment Company now owns shares totaling to 1.04% of the shares outstanding.

Shares of Raytheon Technologies Corporation (NYSE: RTX) opened at $60.67, down -$0.32 from a prior closing price of $60.99. However, the script later closed the day at $60.27, down -1.18%. The company’s stock has a 5-day price change of -5.30% and 0.45% over the past three months. RTX shares are trading -31.77% year to date (YTD), with the 12-month market performance down to -20.14% lower. It has a 12-month low price of $40.71 and touched a high of $93.45 over the same period. Currently, 7.06 million shares have been traded, compared to an average intraday trading volume of 9.75 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by -1.28%, -2.88%, and -16.61% respectively.

Institutional ownership of Raytheon Technologies Corporation (NYSE: RTX) shares accounts for 76.40% of the company’s 1.50B shares outstanding. Mutual fund holders own 38.40%, while other institutional holders and individual stakeholders account for 38.67% and 0.05% respectively.

It has a market capitalization of $93.17B and a beta (3y monthly) value of 1.35. The stock’s trailing 12-month PE ratio is 147.72, while the earnings-per-share (ttm) stands at $0.41. Price movements for the stock have been influenced by the stock’s volatility, which stands at 1.92% over the week and 2.68% over the month.

Analysts forecast that Raytheon Technologies Corporation (RTX) will achieve an EPS of $RXT for the current quarter, $18.33 for the next quarter and $Stocks for Type. The lowest estimate earnings-per-share for the quarter is $Vertex Pharmaceuticals Incorpor while analysts give the company a high EPS estimate of $Seagate Technology PLC. Comparatively, EPS for the current quarter was $Heron Therapeutics, Inc. a year ago. Earnings per share for the fiscal year are expected to decrease by -13.70%, and 34.76% over the next financial year. EPS should shrink at an annualized rate of -13.25% over the next five years, compared to -0.70% over the past 5-year period.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 19 brokerage firm advisors rate Raytheon Technologies Corporation (RTX) as a “Moderate Buy” at a consensus score of 2.10. Specifically, 11 Wall Street analysts polled rate the stock as a buy, while 5 of the 19 advise that investors “hold,” and 0 rated it as a “Sell.”

Looking at the support for the RTX, a number of firms have released research notes about the stock. Argus stated their Hold rating for the stock in a research note on July 29, 2020, with the firm’s price target at. Vertical Research coverage for the Raytheon Technologies Corporation (RTX) stock in a research note released on July 10, 2020 offered a Buy rating with a price target of $77. RBC Capital Mkts was of a view on May 21, 2020 that the stock is Outperform, while Goldman gave the stock Buy rating on April 15, 2020, issuing a price target of $76. JP Morgan on their part issued Neutral rating on April 15, 2020.

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