Zacks Investment Research Downgrades Raytheon (RTN) to Hold

Zacks Investment Research lowered shares of Raytheon (NYSE:RTN) from a buy rating to a hold rating in a research note published on Thursday.

According to Zacks, “Raytheon's share price outperformed the broader industry over the last one year. The company is one of the best-positioned large-cap defense players due to its non-platform centric focus. Due to its wide range of combat-proven defense products, the company continues to receive numerous orders from both Pentagon as well as foreign allies. Raytheon’s Patriot missile-defense systems have seen a number of buyers in recent times including international customers from Europe as well as the Middle East. Looking towards 2018 and beyond, However, factors like tough competition and political uncertainty continue to be major headwind for Raytheon. The company’s sales from international markets are subject to country-specific risk related to political stability and regime change. Also, Raytheon operates in a highly competitive market, resulting to stiff competion.”

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RTN has been the topic of a number of other research reports. Wells Fargo reissued an outperform rating and set a $215.00 price objective (up previously from $202.00) on shares of Raytheon in a research note on Tuesday, January 16th. Stifel Nicolaus reissued a buy rating and set a $210.00 price objective on shares of Raytheon in a research note on Tuesday, January 9th. Morgan Stanley boosted their price objective on Raytheon from $224.00 to $245.00 and gave the stock an overweight rating in a research note on Friday, February 23rd. ValuEngine raised Raytheon from a hold rating to a buy rating in a research note on Sunday, December 31st. Finally, Sanford C. Bernstein boosted their price objective on Raytheon from $231.00 to $255.00 and gave the stock an outperform rating in a research note on Monday, January 29th. Four investment analysts have rated the stock with a hold rating and fifteen have issued a buy rating to the company’s stock. The stock currently has a consensus rating of Buy and an average price target of $219.36.

NYSE RTN opened at $222.01 on Thursday. The firm has a market cap of $63,742.51, a price-to-earnings ratio of 29.14, a P/E/G ratio of 2.08 and a beta of 0.70. The company has a current ratio of 1.54, a quick ratio of 1.46 and a debt-to-equity ratio of 0.48. Raytheon has a fifty-two week low of $151.90 and a fifty-two week high of $222.82.

Raytheon (NYSE:RTN) last released its quarterly earnings data on Thursday, January 25th. The aerospace company reported $2.03 earnings per share for the quarter, topping the Zacks’ consensus estimate of $2.02 by $0.01. The company had revenue of $6.78 billion for the quarter, compared to analyst estimates of $6.81 billion. Raytheon had a return on equity of 21.36% and a net margin of 7.98%. The firm’s revenue for the quarter was up 8.0% compared to the same quarter last year. During the same quarter in the previous year, the company posted $1.84 earnings per share. equities analysts anticipate that Raytheon will post 9.69 EPS for the current year.

The firm also recently announced a quarterly dividend, which will be paid on Thursday, May 10th. Shareholders of record on Wednesday, April 11th will be given a $0.8675 dividend. The ex-dividend date is Tuesday, April 10th. This represents a $3.47 dividend on an annualized basis and a yield of 1.56%. This is an increase from Raytheon’s previous quarterly dividend of $0.80. Raytheon’s payout ratio is currently 45.54%.

In related news, Chairman Thomas A. Kennedy sold 44,778 shares of the business’s stock in a transaction on Thursday, February 15th. The stock was sold at an average price of $215.90, for a total value of $9,667,570.20. Following the sale, the chairman now owns 138,339 shares in the company, valued at approximately $29,867,390.10. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CFO Anthony F. O’brien sold 10,503 shares of the business’s stock in a transaction on Thursday, March 1st. The shares were sold at an average price of $214.17, for a total value of $2,249,427.51. Following the completion of the sale, the chief financial officer now owns 35,328 shares in the company, valued at approximately $7,566,197.76. The disclosure for this sale can be found here. Insiders sold a total of 105,866 shares of company stock worth $22,730,714 in the last quarter. Company insiders own 0.19% of the company’s stock.

Hedge funds have recently bought and sold shares of the stock. Stonehearth Capital Management LLC purchased a new stake in shares of Raytheon in the 4th quarter valued at $103,000. Rowland & Co. Investment Counsel ADV purchased a new stake in shares of Raytheon in the 4th quarter valued at $106,000. Global Trust Asset Management LLC purchased a new stake in shares of Raytheon in the 4th quarter valued at $136,000. Certified Advisory Corp purchased a new stake in shares of Raytheon in the 4th quarter valued at $174,000. Finally, Risk Paradigm Group LLC raised its holdings in shares of Raytheon by 120.9% in the 4th quarter. Risk Paradigm Group LLC now owns 963 shares of the aerospace company’s stock valued at $181,000 after buying an additional 527 shares during the period. Hedge funds and other institutional investors own 73.60% of the company’s stock.

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About Raytheon

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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