RTN - Why Shares of Raytheon Fell in March
Shares of Raytheon (NYSE: RTN) performed significantly worse than those of other defense pure-plays in March, falling 30.4% for the month, according to data provided by S&P Global Market Intelligence, compared to 8% declines by both Lockheed Martin and Northrop Grumman.
The issue for Raytheon had nothing to do with the company's internal operations, rather it was the company's planned merger with the aerospace arm of United Technologies (NYSE: UTX). The deal is all stock, and as UTX slid during the month Raytheon shareholders went along for the ride.
Raytheon is primarily a defense contractor, selling a range of specialized electronics, sensors, and missiles to U.S. and allied governments. While some manufacturing delays are likely due to the COVID-19 coronavirus pandemic, the business is unlikely to dry up even if the global economy hits rough times.