Raytheon (RTN) Lifted to Buy at Zacks Investment Research
Raytheon (NYSE:RTN) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report issued on Friday. The brokerage presently has a $217.00 target price on the aerospace company’s stock. Zacks Investment Research‘s price objective would indicate a potential upside of 12.23% from the company’s current price.
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.”
A number of other brokerages have also recently weighed in on RTN. Citigroup restated a “buy” rating and issued a $215.00 price objective (up previously from $192.00) on shares of Raytheon in a report on Monday, October 9th. Stifel Nicolaus reiterated a “buy” rating and issued a $210.00 price target on shares of Raytheon in a research note on Tuesday. Robert W. Baird reiterated a “buy” rating and issued a $212.00 price target on shares of Raytheon in a research note on Tuesday, October 24th. JPMorgan Chase & Co. downgraded shares of Raytheon from an “overweight” rating to a “neutral” rating and lifted their price target for the stock from $190.00 to $210.00 in a research note on Tuesday, December 12th. Finally, ValuEngine downgraded shares of Raytheon from a “buy” rating to a “hold” rating in a research note on Monday, October 2nd. Three research analysts have rated the stock with a hold rating and sixteen have given a buy rating to the company’s stock. The company has a consensus rating of “Buy” and a consensus price target of $203.36.
Raytheon (NYSE:RTN) last announced its quarterly earnings data on Thursday, October 26th. The aerospace company reported $1.97 earnings per share for the quarter, beating analysts’ consensus estimates of $1.90 by $0.07. The firm had revenue of $6.28 billion during the quarter, compared to analysts’ expectations of $6.33 billion. Raytheon had a net margin of 8.77% and a return on equity of 20.98%. The business’s quarterly revenue was up 4.5% compared to the same quarter last year. During the same quarter in the previous year, the business posted $1.79 earnings per share. research analysts expect that Raytheon will post 7.61 EPS for the current fiscal year.
Raytheon declared that its Board of Directors has approved a share repurchase plan on Wednesday, November 15th that allows the company to repurchase $2.00 billion in outstanding shares. This repurchase authorization allows the aerospace company to purchase shares of its stock through open market purchases. Shares repurchase plans are often a sign that the company’s board of directors believes its stock is undervalued.
In other news, Director Letitia A. Long sold 650 shares of Raytheon stock in a transaction on Tuesday, January 2nd. The shares were sold at an average price of $185.83, for a total value of $120,789.50. Following the transaction, the director now directly owns 2,273 shares of the company’s stock, valued at approximately $422,391.59. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, VP Frank R. Jimenez sold 175 shares of Raytheon stock in a transaction on Saturday, December 29th. The shares were sold at an average price of $189.13, for a total transaction of $33,097.75. Following the completion of the transaction, the vice president now directly owns 28,311 shares in the company, valued at $5,354,459.43. The disclosure for this sale can be found here. Insiders sold a total of 1,895 shares of company stock worth $357,215 over the last ninety days. Corporate insiders own 0.19% of the company’s stock.
Institutional investors have recently made changes to their positions in the company. Janus Henderson Group PLC increased its stake in Raytheon by 13,784.9% in the 2nd quarter. Janus Henderson Group PLC now owns 1,494,150 shares of the aerospace company’s stock valued at $241,276,000 after buying an additional 1,483,389 shares during the period. Alliancebernstein L.P. increased its stake in Raytheon by 55.2% in the 2nd quarter. Alliancebernstein L.P. now owns 2,328,691 shares of the aerospace company’s stock valued at $376,037,000 after buying an additional 827,931 shares during the period. UBS Asset Management Americas Inc. increased its stake in Raytheon by 42.7% in the 2nd quarter. UBS Asset Management Americas Inc. now owns 1,826,164 shares of the aerospace company’s stock valued at $294,889,000 after buying an additional 546,398 shares during the period. BlackRock Inc. increased its stake in Raytheon by 2.7% in the 2nd quarter. BlackRock Inc. now owns 19,934,958 shares of the aerospace company’s stock valued at $3,219,097,000 after buying an additional 527,139 shares during the period. Finally, Stifel Financial Corp increased its stake in Raytheon by 2,385.7% in the 3rd quarter. Stifel Financial Corp now owns 488,766 shares of the aerospace company’s stock valued at $90,995,000 after buying an additional 469,103 shares during the period. 73.12% of the stock is currently owned by institutional investors and hedge funds.
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Raytheon Company Profile
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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