Goldman and Khanna Proved Right As RTX Continues to Tumble
Raytheon Technologies Corp (RTX:US) has been struggling with engine issues for the past three months. In late July, the company reported possible issues with 1200 of its engines. Last month, the same number increased to 3000. The manufacturing flaw has meant the stock continues to struggle going into the last quarter of the year.
The tension between Israel and Palestine gave a boost to the company’s stock price as it went up by 5% after the attack on Israel. Raytheon is a critical partner in developing the Iron Dome defense system for Israel and any move by the U.S. to aid Israel is likely going to have a positive effect on the company.
Having said that, the excitement has been short-lived. Raytheon may be in a bigger hole than it first anticipated and political selling certainly points to that.
Daniel Goldman and Ro Khanna both bet against the aerospace and defense company. Goldman sold $50,000 - $100,000 worth of RTX stock only days before the company announced it would need to inspect some of its engines for a manufacturing fault.
Rep. Khanna, who is known for his frequent trades, has been on a selling spree so far this year. In February, he sold $45,000 - $150,000 worth of stock.
Both the politicians sold close to the $100 mark. RTX shares have been trading sideways around the $73 mark for about a month now. They are down nearly 25% in the last 3 months.
