Raytheon (NYSE:RTN) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued to investors on Friday.
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, Raytheon expects to witness continued growth and strong demand for the areas of counter-insurgency, counter-terrorism and deterrence. However, factors like tough competition and political uncertainty continue to be major headwind for Raytheon. The recent tax reform had an adverse impact on the company's bottom line.”
A number of other research firms also recently commented on RTN. Morgan Stanley lifted their target price on Raytheon from $224.00 to $245.00 and gave the company an “overweight” rating in a research report on Friday, February 23rd. ValuEngine upgraded Raytheon from a “hold” rating to a “buy” rating in a research report on Monday, April 2nd. Sanford C. Bernstein lifted their target price on Raytheon from $231.00 to $255.00 and gave the company an “outperform” rating in a research report on Monday, January 29th. Barclays began coverage on Raytheon in a research report on Thursday, March 29th. They issued an “equal weight” rating and a $239.00 target price on the stock. Finally, Cowen restated a “buy” rating and issued a $215.00 target price on shares of Raytheon in a research report on Wednesday, January 31st. Four research analysts have rated the stock with a hold rating and fifteen have given a buy rating to the company. The company currently has an average rating of “Buy” and an average price target of $219.36.
Raytheon (NYSE:RTN) last posted its earnings results on Thursday, January 25th. The aerospace company reported $2.03 EPS for the quarter, beating the Zacks’ consensus estimate of $2.02 by $0.01. Raytheon had a return on equity of 21.36% and a net margin of 7.98%. The company had revenue of $6.78 billion for the quarter, compared to the consensus estimate of $6.81 billion. During the same quarter in the previous year, the business earned $1.84 earnings per share. The company’s revenue for the quarter was up 8.0% on a year-over-year basis. research analysts predict that Raytheon will post 9.66 EPS for the current fiscal year.
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 transaction of $9,667,570.20. Following the completion of the transaction, the chairman now directly owns 138,339 shares of the company’s stock, valued at approximately $29,867,390.10. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CAO Michael J. Wood sold 523 shares of the business’s stock in a transaction on Thursday, March 29th. The stock was sold at an average price of $214.30, for a total value of $112,078.90. Following the transaction, the chief accounting officer now directly owns 15,773 shares of the company’s stock, valued at $3,380,153.90. The disclosure for this sale can be found here. Insiders sold 105,866 shares of company stock valued at $22,730,714 over the last ninety days. Insiders own 0.19% of the company’s stock.
A number of institutional investors and hedge funds have recently added to or reduced their stakes in RTN. HCR Wealth Advisors acquired a new position in Raytheon during the 3rd quarter worth $224,000. Stifel Financial Corp grew its stake in Raytheon by 2,385.7% during the 3rd quarter. Stifel Financial Corp now owns 488,766 shares of the aerospace company’s stock worth $90,995,000 after purchasing an additional 469,103 shares in the last quarter. Mackenzie Financial Corp grew its stake in Raytheon by 36.0% during the 3rd quarter. Mackenzie Financial Corp now owns 3,171 shares of the aerospace company’s stock worth $592,000 after purchasing an additional 840 shares in the last quarter. Sompo Japan Nipponkoa Asset Management CO. LTD. acquired a new position in Raytheon during the 3rd quarter worth $4,485,000. Finally, Invictus RG acquired a new position in Raytheon during the 3rd quarter worth $152,000. 73.43% of the stock is owned by hedge funds and other institutional investors.
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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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