Raytheon Co. (NYSE:RTN) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report issued 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.”
Several other analysts have also issued reports on the company. Robert W. Baird assumed coverage on Raytheon in a report on Thursday, October 6th. They set an “outperform” rating and a $170.00 price objective for the company. Citigroup Inc. increased their price objective on Raytheon from $145.00 to $170.00 and gave the stock a “buy” rating in a report on Tuesday, September 6th. Argus reiterated a “buy” rating and set a $161.00 price objective on shares of Raytheon in a report on Wednesday, August 3rd. Credit Suisse Group AG reiterated a “buy” rating and set a $151.00 price objective on shares of Raytheon in a report on Friday, July 29th. Finally, JPMorgan Chase & Co. set a $145.00 price objective on Raytheon 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 assigned a hold rating and seventeen have assigned a buy rating to the stock. Raytheon presently has an average rating of “Buy” and a consensus price target of $174.67.
Shares of Raytheon (NYSE:RTN) traded up 0.44% on Monday, reaching $137.95. The company had a trading volume of 414,832 shares. Raytheon has a 52-week low of $110.37 and a 52-week high of $143.39. The firm has a market capitalization of $40.71 billion, a PE ratio of 19.28 and a beta of 0.64. The company has a 50-day moving average price of $138.29 and a 200-day moving average price of $134.60.
Raytheon (NYSE:RTN) last released its earnings results on Thursday, July 28th. The company reported $2.38 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $1.74 by $0.64. The company earned $6 billion during the quarter, compared to analyst estimates of $5.83 billion. Raytheon had a return on equity of 19.26% and a net margin of 9.02%. The company’s revenue for the quarter was up 3.2% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.65 earnings per share. Equities research analysts forecast that Raytheon will post $7.41 EPS for the current fiscal year.
The business also recently disclosed a quarterly dividend, which will be paid on Thursday, November 10th. Shareholders of record on Wednesday, October 5th will be issued a dividend of $0.7325 per share. This represents a $2.93 dividend on an annualized basis and a yield of 2.13%. The ex-dividend date is Monday, October 3rd. Raytheon’s payout ratio is 40.86%.
In other Raytheon news, Director Vernon E. Clark sold 2,540 shares of Raytheon stock in a transaction that occurred on Tuesday, August 2nd. The stock was sold at an average price of $141.01, for a total transaction of $358,165.40. Following the sale, the director now directly owns 7,246 shares of the company’s stock, valued at $1,021,758.46. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Company insiders own 0.21% of the company’s stock.
Large investors have recently added to or reduced their stakes in the stock. Vanguard Group Inc. increased its stake in Raytheon by 1.7% in the second quarter. Vanguard Group Inc. now owns 20,099,514 shares of the company’s stock worth $2,732,529,000 after buying an additional 338,275 shares during the last quarter. State Street Corp increased its stake in Raytheon by 2.2% in the first quarter. State Street Corp now owns 11,603,956 shares of the company’s stock worth $1,423,003,000 after buying an additional 251,618 shares during the last quarter. FMR LLC increased its stake in Raytheon by 8.5% in the second quarter. FMR LLC now owns 7,148,691 shares of the company’s stock worth $971,865,000 after buying an additional 559,138 shares during the last quarter. Boston Partners increased its stake in Raytheon by 40.7% in the second quarter. Boston Partners now owns 6,598,827 shares of the company’s stock worth $897,111,000 after buying an additional 1,909,316 shares during the last quarter. Finally, BlackRock Fund Advisors increased its stake in Raytheon by 5.8% in the second quarter. BlackRock Fund Advisors now owns 3,889,698 shares of the company’s stock worth $528,804,000 after buying an additional 212,491 shares during the last quarter. 77.89% of the stock is currently owned by institutional investors.
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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