Raytheon Co. (RTN) Downgraded by Zacks Investment Research to Sell
Raytheon Co. (NYSE:RTN) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a note issued to investors on Monday.
According to Zacks, “Raytheon remains highly dependent on the U.S. government for military contracts and any change in the federal government’s budgetary policy could adversely impact the company. Moreover, the company’s sales from international markets are subject to country-specific risk related to political stability and regime change. Tough competition also continues to be a major headwind for this defense major, wnforeseen events can lead to disruptions in technology and may raise cost of production for Raytheon. On a bright note, the U.S. fiscal 2016 bill emphasizing cyber programs and the fact that Raytheon has invested more than $3.5 billion in its cybersecurity capabilities will surely expand the company’s shares in this space. Further, Raytheon continues to be a strong cash generator, which helps it to take important cash deployment decisions.”
RTN has been the topic of a number of other research reports. Robert W. Baird initiated coverage on shares of Raytheon in a report on Thursday, October 6th. They set an “outperform” rating and a $170.00 price target on the stock. Citigroup Inc. lifted their price target on shares of Raytheon from $145.00 to $170.00 and gave the stock a “buy” rating in a report on Tuesday, September 6th. Jefferies Group reiterated a “buy” rating on shares of Raytheon in a report on Wednesday, July 6th. Deutsche Bank AG lifted their price target on shares of Raytheon from $135.00 to $140.00 and gave the stock a “hold” rating in a report on Friday, July 29th. Finally, Stifel Nicolaus lifted their price target on shares of Raytheon from $140.00 to $160.00 and gave the stock a “buy” rating in a report on Friday, July 29th. One analyst has rated the stock with a sell rating, four have given a hold rating and seventeen have given a buy rating to the stock. The company has a consensus rating of “Buy” and an average price target of $174.67.
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Raytheon (NYSE:RTN) traded up 0.37% during trading on Monday, reaching $137.85. The company’s stock had a trading volume of 421,253 shares. The company has a market cap of $40.68 billion, a P/E ratio of 19.26 and a beta of 0.64. Raytheon has a 12 month low of $110.37 and a 12 month high of $143.39. The stock’s 50-day moving average is $138.29 and its 200 day moving average is $134.60.
Raytheon (NYSE:RTN) last issued its quarterly earnings results on Thursday, July 28th. The company reported $2.38 EPS for the quarter, topping analysts’ consensus estimates of $1.74 by $0.64. The company had revenue of $6 billion for the quarter, compared to analyst estimates of $5.83 billion. Raytheon had a net margin of 9.02% and a return on equity of 19.26%. Raytheon’s revenue was up 3.2% compared to the same quarter last year. During the same quarter in the previous year, the business earned $1.65 earnings per share. On average, equities analysts forecast that Raytheon will post $7.41 EPS for the current fiscal year.
The company also recently declared a quarterly dividend, which will be paid on Thursday, November 10th. Investors of record on Wednesday, October 5th will be issued a dividend of $0.7325 per share. This represents a $2.93 annualized dividend and a yield of 2.13%. The ex-dividend date is Monday, October 3rd. Raytheon’s dividend payout ratio (DPR) is presently 40.86%.
In related news, Director Vernon E. Clark sold 2,540 shares of the business’s stock in a transaction dated Tuesday, August 2nd. The shares were sold at an average price of $141.01, for a total transaction of $358,165.40. Following the transaction, the director now directly owns 7,246 shares in the company, valued at $1,021,758.46. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Corporate insiders own 0.21% of the company’s stock.
A number of hedge funds and other institutional investors have recently added to or reduced their stakes in RTN. Boston Partners boosted its position in Raytheon by 40.7% in the second quarter. Boston Partners now owns 6,598,827 shares of the company’s stock valued at $897,111,000 after buying an additional 1,909,316 shares during the period. Adage Capital Partners GP L.L.C. boosted its position in Raytheon by 534.4% in the first quarter. Adage Capital Partners GP L.L.C. now owns 2,194,011 shares of the company’s stock worth $269,052,000 after buying an additional 1,848,150 shares during the last quarter. Winslow Capital Management LLC bought a new position in Raytheon during the second quarter worth $241,937,000. Emerald Acquisition Ltd. bought a new position in Raytheon during the second quarter worth $131,445,000. Finally, Renaissance Technologies LLC boosted its position in Raytheon by 1,302.8% in the first quarter. Renaissance Technologies LLC now owns 1,015,600 shares of the company’s stock worth $124,543,000 after buying an additional 943,200 shares during the last quarter. Institutional investors and hedge funds own 77.89% of the company’s stock.
Raytheon Company (Raytheon), together with its subsidiaries, is a technology company. The Company develops technologically integrated products, services and solutions in various markets, such as sensing; effects; command, control, communications, computers, cyber and intelligence (C5I); mission support, and cybersecurity.
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