UTX - Why Shares of Raytheon Are Tumbling Today
Shares of Raytheon (NYSE: RTN) are down more than 16% on Wednesday, performing significantly worse than most other defense stocks. There is no company-specific Raytheon move, but the shares appear to be falling along side Raytheon merger partner United Technologies (NYSE: UTX).
Last summer, with both stocks flying high, Raytheon and United Technologies announced plans to merge in a deal that would leave both companies better diversified. Combining Raytheon's defense-heavy business with United Technologies' commercial-heavy aircraft engine and interiors business would give Raytheon investors exposure to the ongoing commercial boom, while giving UTX holders a strong military portfolio to fall back on when the commercial cycle eventually turned.
Image source: Raytheon.