On Tuesday, Eastover Investment Advisors disclosed that it sold 6,691 shares of RTX Corporation (RTX +0.60%) in the third quarter.
What happened
Eastover Investment Advisors sold 6,691 shares of RTX Corporation(RTX +0.60%) worth an estimated $1 million in the third quarter, according to a Form 13-F filed with the Securities and Exchange Commission on Tuesday. The fund reported holding 54,659 shares worth $9.1 million as of September 30.
What else to know
Eastover's RTX position represents about 4% of the firm's total assets.
Top holdings after the filing:
- NASDAQ:AVGO: $15.2 million (6.6% of AUM)
- NASDAQ:AAPL: $12.9 million (5.6% of AUM)
- NASDAQ:NVDA: $12.9 million (5.6% of AUM)
- NASDAQ:GOOGL: $11.4 million (5.0% of AUM)
- NASDAQ:MSFT: $11.4 million (4.96% of AUM)
As of Monday, shares of RTX were priced at $169.27, up 35% over the past year and outperforming the S&P 500 by about 17 percentage points.
Company Overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $83.60 billion |
| Net Income (TTM) | $6.15 billion |
| Dividend Yield | 1.6% |
| Price (as of market close on Tuesday) | $169.27 |
Company Snapshot
- RTX provides aerospace and defense systems, including aircraft engines, avionics, cabin interiors, threat detection, and aftermarket services through its Collins Aerospace, Pratt & Whitney, and Raytheon segments.
- Generates revenue primarily from the sale of products and long-term service agreements to commercial airlines, military, and government customers, leveraging a mix of original equipment manufacturing and aftermarket support.
- Serves commercial airlines, defense departments, and government agencies globally, with a significant presence in both U.S. and international markets.
RTX Corporation is a leading global aerospace and defense company with a diversified portfolio spanning commercial aviation, military systems, and advanced defense technologies.
Foolish take
Charlotte-based Eastover Investment Advisors’ sale of 6,691 shares of RTX Corporation (formerly Raytheon Technologies)—worth about $1 million—could reflect profit-taking after a year of extraordinary gains. The aerospace and defense contractor’s stock has soared 46% year-to-date, handily outperforming the S&P 500’s 14% rise, as demand for both commercial aviation and defense systems surged.
RTX reported 9% year-over-year sales growth in the second quarter, with strength across all three business segments—Collins Aerospace, Pratt & Whitney, and Raytheon—and particularly notable 16% commercial aftermarket growth. Adjusted earnings per share rose 11% to $1.56, and CEO Chris Calio highlighted a record backlog of $236 billion, calling the results proof that “we’re well positioned to drive long-term profitable growth.”
Investors will get a closer look at how RTX is executing when it reports third-quarter earnings on October 21. And with the recovery in commercial air travel and robust global defense spending, RTX offers dual exposure to cyclical and structural growth trends. For long-term investors, occasional pullbacks—like Eastover’s sale—may still represent opportunities, not exits.
Glossary
13F reportable assets: Assets that institutional investment managers must disclose quarterly to the SEC, showing their holdings.
Assets Under Management (AUM): The total market value of investments managed by a fund or firm on behalf of clients.
Fully liquidated: Sold all shares or holdings in a particular investment, resulting in a zero position.
Form 13-F: A quarterly SEC filing by institutional investment managers to disclose their equity holdings.
Aftermarket services: Support, maintenance, and parts provided after the initial sale of a product, often generating recurring revenue.
Original equipment manufacturing: Producing components or products that are sold to other companies for use in their end products.
Dividend yield: A financial ratio showing how much a company pays in dividends each year relative to its share price.
TTM: The 12-month period ending with the most recent quarterly report.
