Zacks Investment Research Lowers Raytheon Company (RTN) to Hold

Zacks Investment Research downgraded shares of Raytheon Company (NYSE:RTN) from a buy rating to a hold rating in a research note released on Monday morning.

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 of the nation. In particular, its Patriot missile-defense systems have been seeing increased number of buyers, lately.  Also, Raytheon’s stock outperformed the broader industry on a year-to-date basis. Moreover, the company is a strong cash generator, which allows it to pay attractive dividend per share to its shareholders. On the flip side, factors like tough competition, budget deficits and political uncertainty continue to be major headwinds for Raytheon. Moreover, the company's over dependence on fixed-price contracts remains a concern.”

A number of other analysts have also recently commented on the company. BidaskClub upgraded Raytheon from a buy rating to a strong-buy rating in a research report on Saturday, August 12th. Buckingham Research lifted their price objective on Raytheon from $190.00 to $199.00 and gave the stock a buy rating in a research report on Friday, August 11th. Argus reiterated a buy rating and set a $195.00 price objective (up previously from $175.00) on shares of Raytheon in a research report on Friday, August 4th. Morgan Stanley assumed coverage on Raytheon in a research report on Tuesday, August 8th. They set an equal weight rating and a $188.00 price objective for the company. Finally, Cowen and Company reiterated an outperform rating and set a $189.00 price objective (up previously from $182.00) on shares of Raytheon in a research report on Thursday, August 10th. Three research analysts have rated the stock with a hold rating and fifteen have given a buy rating to the company. The company presently has an average rating of Buy and an average target price of $186.14.

Raytheon (RTN) opened at 184.80 on Monday. The stock’s 50 day moving average is $179.06 and its 200 day moving average is $164.34. The firm has a market cap of $53.64 billion, a PE ratio of 25.52 and a beta of 0.58. Raytheon has a 12 month low of $132.89 and a 12 month high of $185.15.

Raytheon (NYSE:RTN) last announced its quarterly earnings results on Thursday, July 27th. The aerospace company reported $1.89 earnings per share for the quarter, beating analysts’ consensus estimates of $1.74 by $0.15. Raytheon had a return on equity of 20.74% and a net margin of 8.68%. The business had revenue of $6.28 billion during the quarter, compared to analysts’ expectations of $6.24 billion. During the same quarter last year, the business posted $2.38 earnings per share. The business’s revenue for the quarter was up 4.2% on a year-over-year basis. On average, equities analysts forecast that Raytheon will post $7.59 earnings per share for the current year.

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In other news, Director Robert E. Beauchamp acquired 1,162 shares of Raytheon stock in a transaction dated Monday, July 31st. The shares were acquired at an average cost of $171.99 per share, with a total value of $199,852.38. Following the purchase, the director now directly owns 4,303 shares of the company’s stock, valued at approximately $740,072.97. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Vernon E. Clark sold 829 shares of Raytheon stock in a transaction dated Monday, August 14th. The shares were sold at an average price of $180.19, for a total value of $149,377.51. Following the completion of the transaction, the director now directly owns 7,588 shares in the company, valued at $1,367,281.72. The disclosure for this sale can be found here. Insiders sold a total of 5,120 shares of company stock valued at $930,651 in the last 90 days. 0.19% of the stock is owned by company insiders.

Several hedge funds and other institutional investors have recently added to or reduced their stakes in RTN. Signature Estate & Investment Advisors LLC acquired a new position in shares of Raytheon in the 1st quarter valued at about $111,000. St. Johns Investment Management Company LLC acquired a new position in shares of Raytheon in the 2nd quarter valued at about $113,000. Jacobi Capital Management LLC lifted its stake in shares of Raytheon by 271.1% in the 1st quarter. Jacobi Capital Management LLC now owns 757 shares of the aerospace company’s stock valued at $114,000 after purchasing an additional 553 shares in the last quarter. Tarbox Family Office Inc. lifted its stake in shares of Raytheon by 1,666.7% in the 2nd quarter. Tarbox Family Office Inc. now owns 795 shares of the aerospace company’s stock valued at $128,000 after purchasing an additional 750 shares in the last quarter. Finally, Shine Investment Advisory Services Inc. acquired a new position in shares of Raytheon in the 2nd quarter valued at about $139,000. 73.75% of the stock is currently owned by institutional investors and hedge funds.

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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