Raytheon (RTN) Rating Increased to Buy at Zacks Investment Research
Zacks Investment Research upgraded shares of Raytheon (NYSE:RTN) from a hold rating to a buy rating in a research note published on Friday morning. They currently have $217.00 target price on the aerospace company’s stock.
According to Zacks, “Raytheon is one of the best-positioned large-cap defense players due to its non-platform-centric focus. Thanks to its wide range of combat-proven defense products, the company continues to receive scrumptious orders from both Pentagon as well as foreign allies. Moreover, the company is a strong cash generator, which allows it to pay attractive dividend to shareholders. Also the company outperformed the broader industry over a year. On the flip side, factors like tough competition and political uncertainty continue to be major headwinds for Raytheon.”
RTN has been the topic of a number of other reports. Buckingham Research boosted their price target on Raytheon from $199.00 to $204.00 and gave the stock a buy rating in a report on Tuesday, October 31st. Robert W. Baird reissued a buy rating and issued a $212.00 price target on shares of Raytheon in a report on Tuesday, October 24th. Cowen reissued a buy rating and issued a $203.00 price target on shares of Raytheon in a report on Thursday, October 26th. Wells Fargo & Co lowered their price target on Raytheon from $200.00 to $195.00 and set an outperform rating on the stock in a report on Friday, October 27th. Finally, Citigroup reissued a buy rating and issued a $215.00 price target (up from $192.00) on shares of Raytheon in a report on Monday, October 9th. Three research analysts have rated the stock with a hold rating and sixteen have issued a buy rating to the company’s stock. Raytheon has a consensus rating of Buy and an average price target of $204.12.
Raytheon (NYSE:RTN) traded up $0.98 during mid-day trading on Friday, hitting $198.44. The stock had a trading volume of 449,080 shares, compared to its average volume of 1,383,322. Raytheon has a 12-month low of $141.28 and a 12-month high of $198.07. The company has a current ratio of 1.66, a quick ratio of 1.55 and a debt-to-equity ratio of 0.44. The stock has a market cap of $57,550.00, a PE ratio of 26.71, a P/E/G ratio of 2.73 and a beta of 0.58.
Raytheon (NYSE:RTN) last posted its quarterly earnings data on Thursday, October 26th. The aerospace company reported $1.97 earnings per share for the quarter, beating the Zacks’ consensus estimate of $1.90 by $0.07. Raytheon had a return on equity of 20.98% and a net margin of 8.77%. The firm had revenue of $6.28 billion for the quarter, compared to analysts’ expectations of $6.33 billion. During the same period in the previous year, the firm earned $1.79 EPS. The business’s quarterly revenue was up 4.5% on a year-over-year basis. equities analysts forecast that Raytheon will post 7.61 earnings per share for the current year.
The company also recently disclosed a quarterly dividend, which will be paid on Thursday, February 1st. Stockholders of record on Wednesday, January 3rd will be issued a dividend of $0.7975 per share. The ex-dividend date of this dividend is Tuesday, January 2nd. This represents a $3.19 annualized dividend and a dividend yield of 1.61%. Raytheon’s dividend payout ratio (DPR) is 42.93%.
Raytheon announced that its Board of Directors has initiated a stock buyback program on Wednesday, November 15th that permits the company to buyback $2.00 billion in outstanding shares. This buyback authorization permits the aerospace company to purchase shares of its stock through open market purchases. Shares buyback programs are generally a sign that the company’s board of directors believes its shares are undervalued.
In other news, VP Frank R. Jimenez sold 175 shares of the company’s stock in a transaction that occurred on Friday, December 29th. The stock was sold at an average price of $189.13, for a total transaction of $33,097.75. The sale was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, Director Letitia A. Long sold 650 shares of the company’s stock in a transaction that occurred on Tuesday, January 2nd. The stock was sold at an average price of $185.83, for a total value of $120,789.50. Following the sale, the director now directly owns 2,273 shares in the company, valued at $422,391.59. The disclosure for this sale can be found here. Insiders have sold a total of 1,895 shares of company stock worth $357,215 over the last ninety days. Insiders own 0.19% of the company’s stock.
Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Signature Estate & Investment Advisors LLC bought a new position in shares of Raytheon during the 3rd quarter valued at approximately $103,000. Stonehearth Capital Management LLC bought a new position in shares of Raytheon during the 4th quarter valued at approximately $103,000. Rowland & Co. Investment Counsel ADV bought a new position in shares of Raytheon during the 4th quarter valued at approximately $106,000. Jacobi Capital Management LLC increased its position in shares of Raytheon by 5.3% during the 2nd quarter. Jacobi Capital Management LLC now owns 797 shares of the aerospace company’s stock valued at $132,000 after purchasing an additional 40 shares during the last quarter. Finally, Invictus RG bought a new position in shares of Raytheon during the 3rd quarter valued at approximately $152,000. 73.26% of the stock is currently owned by hedge funds and other institutional investors.
Raytheon Company is a technology company, which specializes in defense and other government markets. The Company develops integrated products, services and solutions in various markets, including sensing; effects; command, control, communications, computers, cyber and intelligence; mission support, and cybersecurity.
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