Jim Cramer Discusses the Recent Stock Rally in RTX as the Company Aligns with Government Goals

RTX Corporation (NYSE:RTX) is one of the stocks Jim Cramer talked about, along with the memory shortage. Cramer discussed the company’s buyback situation during the episode, as he said:

Then there’s RTX, which had been singled out by the president for being least responsive of the defense contractors to the Department of War’s demands for quicker, better munitions and fewer buybacks. That was in a Truth Social post. The company addressed these concerns several times on the conference call. It was very responsive. I’ve known RTX to be a huge repurchaser of its shares in the last five years, a serial buyback company, not this time.

The key contractor for the Golden Dome project, it didn’t buy back any shares this quarter. Saw its share count grow, which should cause a 5-cent per share earnings headwind this year. They got the message. As CEO, Chris Calio explained, “We fully support the Department of War’s transformation objectives to significantly increase capacity and accelerate production over a sustained period.” My conclusion: the Truth Social post worked. Now, RTX is on board. The stock rallied nicely. They’re going to keep the dividend, but wow, buyback…

Stock market data. Photo by Alesia Kozik on Pexels

RTX Corporation (NYSE:RTX) makes aerospace and defense systems for commercial, military, and government customers. The company builds aircraft engines, avionics, and defense technologies, and also provides maintenance, training, and support services.

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Disclosure: None. This article is originally published at Insider Monkey.