Is Buying Stock Like Raytheon Company Good Idea After Today’s Bearish Options Activity?

 Is Buying Stock Like Raytheon Company Good Idea After Today's Bearish Options Activity?

In today’s session Raytheon Company (RTN) recorded an unusually high (192) contracts volume of put trades. Someone, most probably a professional was a very active buyer of the February, 2017 put, expecting serious RTN decrease. With 192 contracts traded and 4044 open interest for the Feb, 17 contract, it seems this is a quite bearish bet. The option with symbol: RTN170217P00115000 closed last at: $1.48 or 2% down. The stock closed at $137.17 during the last session. It is up 9.62% since March 2, 2016 and is uptrending. It has outperformed by 0.38% the S&P500.

Analysts await Raytheon Company (NYSE:RTN) to report earnings on October, 27. They expect $1.69 EPS, up 14.97% or $0.22 from last year’s $1.47 per share. RTN’s profit will be $502.55M for 20.29 P/E if the $1.69 EPS becomes a reality. After $1.75 actual EPS reported by Raytheon Company for the previous quarter, Wall Street now forecasts -3.43% negative EPS growth.

Raytheon Company (NYSE:RTN) Ratings Coverage

Out of 13 analysts covering Raytheon Company (NYSE:RTN), 9 rate it a “Buy”, 1 “Sell”, while 3 “Hold”. This means 69% are positive. Raytheon Company has been the topic of 28 analyst reports since July 28, 2015 according to StockzIntelligence Inc. On Thursday, September 3 the stock rating was downgraded by Zacks to “Sell”. RBC Capital Markets upgraded Raytheon Company (NYSE:RTN) on Thursday, September 17 to “Top Pick” rating. The firm has “Sell” rating by Zacks given on Monday, August 24. The firm earned “Equal-Weight” rating on Monday, November 30 by Barclays Capital. As per Friday, January 29, the company rating was maintained by RBC Capital Markets. Barclays Capital maintained Raytheon Company (NYSE:RTN) on Monday, May 2 with “Equal Weight” rating. The company was maintained on Wednesday, September 2 by RBC Capital Markets. The firm has “Buy” rating given on Friday, January 29 by Stifel Nicolaus. As per Friday, October 23, the company rating was downgraded by Wolfe Research. The firm earned “Buy” rating on Friday, July 29 by Stifel Nicolaus.

Insitutional Activity: The institutional sentiment is 1.22 in 2016 Q2. Its the same as in 2016Q1. The ratio is flat, as 59 funds sold all Raytheon Company shares owned while 295 reduced positions. only 92 funds bought stakes while 341 increased positions. They now own 226.41 million shares or 4.12% less from 236.13 million shares in 2016Q1.
Piershale Fincl Gru Incorporated has 212 shares for 0.02% of their US portfolio. Vanguard Gru accumulated 20.10M shares or 0.17% of the stock. Arrow Fincl Corp last reported 215 shares in the company. Holt Capital Advsrs Ltd Dba Holt Capital Prtn Ltd Partnership holds 0.12% of its portfolio in Raytheon Company (NYSE:RTN) for 2,125 shares. Bancorpsouth Inc owns 20,018 shares or 0.3% of their US portfolio. Tci Wealth has 0.15% invested in the company for 2,013 shares. Quantbot L P last reported 0.46% of its portfolio in the stock. Uss Inv Management Ltd holds 2.53% of its portfolio in Raytheon Company (NYSE:RTN) for 1.07 million shares. New York State Common Retirement Fund last reported 904,500 shares in the company. Planning Corp holds 0.05% of its portfolio in Raytheon Company (NYSE:RTN) for 5,029 shares. Cognios Lc has invested 3.24% of its portfolio in Raytheon Company (NYSE:RTN). Point72 Asset Mngmt Limited Partnership last reported 182,895 shares in the company. Alpha Windward Ltd Co owns 613 shares or 0.06% of their US portfolio. Douglass Winthrop Advsr Limited Liability Co holds 12,675 shares or 0.11% of its portfolio. Garrison Bradford Assoc Inc, a New York-based fund reported 2,700 shares.

Insider Transactions: Since June 6, 2016, the stock had 0 insider buys, and 7 sales for $4.41 million net activity. Clark Vernon E also sold $358,160 worth of Raytheon Company (NYSE:RTN) on Tuesday, August 2. $344,310 worth of shares were sold by Wood Michael J on Monday, June 6. $1.85M worth of shares were sold by Kennedy Thomas A on Monday, June 6. Another trade for 4,336 shares valued at $580,167 was sold by Lawrence Taylor W. 1,238 shares were sold by O’Brien Anthony F, worth $165,087. The insider RHOADS REBECCA R sold 4,781 shares worth $639,696.

Raytheon Company , together with its subsidiaries, is a technology company. The company has a market cap of $40.79 billion. The Firm 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. It has a 19.23 P/E ratio. It operates in five divisions: Integrated Defense Systems (IDS); Intelligence, Information and Services (IIS); Missile Systems (MS); Space and Airborne Systems (SAS), and Forcepoint.

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