Raytheon Co. (RTN) Rating Lowered to Sell at Zacks Investment Research
Raytheon Co. (NYSE:RTN) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a note issued to investors 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.”
Other equities research analysts have also recently issued research reports about the company. Argus restated a “buy” rating and issued a $161.00 price target on shares of Raytheon in a research note on Wednesday, August 3rd. JPMorgan Chase & Co. set a $145.00 price objective on Raytheon and gave the stock a “buy” rating in a research report on Friday, July 29th. Credit Suisse Group AG reiterated a “buy” rating and set a $151.00 price objective on shares of Raytheon in a research report on Friday, July 29th. Jefferies Group increased their price objective on Raytheon from $145.00 to $158.00 and gave the stock a “buy” rating in a research report on Friday, July 29th. Finally, Deutsche Bank AG increased their price objective on Raytheon from $135.00 to $140.00 and gave the stock a “hold” rating in a research report on Friday, July 29th. One investment 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. The company presently has a consensus rating of “Buy” and an average price target of $174.67.
Raytheon (NYSE:RTN) opened at 137.63 on Monday. The company has a market capitalization of $40.61 billion, a PE ratio of 19.23 and a beta of 0.64. The company has a 50 day moving average price of $138.08 and a 200-day moving average price of $134.98. Raytheon has a 12-month low of $111.60 and a 12-month high of $143.39.
Raytheon (NYSE:RTN) last posted its quarterly earnings results on Thursday, July 28th. The company reported $2.38 earnings per share for the quarter, beating analysts’ consensus estimates of $1.74 by $0.64. Raytheon had a return on equity of 19.26% and a net margin of 9.02%. The business had revenue of $6 billion for the quarter, compared to analysts’ expectations of $5.83 billion. During the same quarter in the prior year, the business earned $1.65 EPS. The firm’s revenue for the quarter was up 3.2% on a year-over-year basis. On average, analysts anticipate that Raytheon will post $7.41 EPS for the current year.
The business also recently announced 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. The ex-dividend date of this dividend is Monday, October 3rd. This represents a $2.93 dividend on an annualized basis and a yield of 2.13%. Raytheon’s dividend payout ratio is currently 40.86%.
In other Raytheon news, Director Vernon E. Clark sold 2,540 shares of the company’s stock in a transaction 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 completion of the sale, the director now owns 7,246 shares in the company, valued at $1,021,758.46. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. Company insiders own 0.21% of the company’s stock.
Several institutional investors have recently modified their holdings of RTN. CWM LLC increased its position in shares of Raytheon by 14.0% in the third quarter. CWM LLC now owns 814 shares of the company’s stock worth $111,000 after buying an additional 100 shares during the last quarter. Quadrant Capital Group LLC increased its position in shares of Raytheon by 5.6% in the second quarter. Quadrant Capital Group LLC now owns 1,022 shares of the company’s stock worth $131,000 after buying an additional 54 shares during the last quarter. Pinkerton Retirement Specialists LLC acquired a new position in shares of Raytheon during the second quarter worth about $135,000. Integrated Investment Consultants LLC increased its position in shares of Raytheon by 11.5% in the second quarter. Integrated Investment Consultants LLC now owns 1,135 shares of the company’s stock worth $154,000 after buying an additional 117 shares during the last quarter. Finally, Foundry Partners LLC acquired a new position in shares of Raytheon during the second quarter worth about $201,000. 77.89% of the stock is currently owned by institutional investors and hedge funds.
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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