Contravisory Loads Up on 62,014 RTX Shares in Q2 2025

Key Points

• The investment firm acquired 62,014 RTX shares for $8.26 million in Q2 2025.

• The trade represented 1.63% of the fund's assets under management.

• Post-trade, the fund held 66,084 shares valued at $9.65 million as of June 30, 2025.

• RTX now comprises approximately 1.90% of the fund’s assets under management.

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Contravisory Investment Management, Inc. disclosed a purchase of RTX shares worth approximately $8.26 million in its latest Q2 2025 regulatory filing dated July 10, 2025.

What happened

According to a Securities and Exchange Commission filing (link) made public July 10, 2025, Contravisory Investment Management, Inc. increased its position in RTX Corporation by 62,014 shares. This purchase brought the fund's total RTX holding to 66,084 shares as of June 30, 2025, with a market value of $9.65 million at the July 10, 2025, closing price of $146.40.

What else to know

Direction recap: buy; RTX now represents 1.90% of reportable 13F assets for Q2 2025.

Top holdings after the filing:

SPOT: $37.38 million (7.3546% of AUM) as of June 30, 2025

NFLX: $36.60 million (7.2% of AUM) as of June 30, 2025

GOOGL: $26.84 million (5.2806% of AUM) as of June 30, 2025

TSM: $25.08 million (4.93% of AUM) as of June 30, 2025

JPM: $24.90 million (4.9% of AUM) as of June 30, 2025

RTX stock closed at $146.40 on July 10, 2025, up 44.79% over the previous year, outperforming the S&P 500 by 32.18 percentage points over the same period. The current dividend yield stands at 1.76%; the forward price-earnings ratio is 24.47

Company overview

Company snapshot

RTX provides aerospace and defense systems, including aircraft engines, avionics, cabin interiors, threat detection, and aftermarket service solutions.

The company generates revenue through the sale of advanced aerospace and defense products, as well as recurring aftermarket and service contracts across three core segments: Collins Aerospace, Pratt & Whitney, and Raytheon.

Serves commercial airlines, aircraft manufacturers, military branches, government agencies, and international defense customers.

RTX Corporation is a global leader in aerospace and defense, operating at scale with approximately 185,000 employees and a diversified portfolio of technologies. The company leverages its broad capabilities across commercial and military markets, offering integrated solutions that support mission-critical operations worldwide.

Foolish take

Given that RTX's market cap weighting in the S&P 500 is just 0.35%, and Contravisory Investment Management's latest purchase of stock took its RTX holding to 1.9% of its reportable assets, the acquisition is significant. In addition, the acquisition increased Contravisory's share count to just over 66,000 shares, compared to just over 4,000 shares previously.

It's a vote of confidence in RTX's potential to avoid the worst of the possible impacts of tariffs on profitability this year. As a reminder, RTX shocked the market back in April when management outlined a potential hit from tariffs of $850 million in 2025. It gets worse: that $850 million estimate includes the positive impact of mitigations, and the impact on cash flow could be even larger, given that it would take longer to receive duty drawback cash for RTX.

However, since April, the trade conflict and ongoing tariff actions have followed a pattern of de-escalation and escalation, illustrating a fluidity in negotiating deals that will ultimately be favorable to all parties. As such, the impact on RTX may not be as severe as many fear.

In addition, President Donald Trump's proposed defense budget of $1.01 trillion for 2026, coming on top of $895 million defense budget for 2025, is a plus for RTX's military business, not least as the budget emphasizes areas of RTX strength like missile defense, tactical missiles, and space-based capability.

Glossary

Assets Under Management (AUM): The total market value of investments managed on behalf of clients by a fund or firm.
13F Assets: Securities holdings reported by institutional investment managers to the SEC on Form 13F, typically for funds over $100 million in assets.
Dividend Yield: Annual dividend payments expressed as a percentage of a stock’s current price.
Forward Price-Earnings Ratio: A valuation metric comparing a company’s current share price to its expected earnings over the next year.
Aftermarket Service: Ongoing maintenance, repair, and support services provided after the initial sale of a product.
Market Capitalization: The total value of a company’s outstanding shares, calculated by multiplying share price by shares outstanding.
Regulatory Filing: Official documents submitted to government agencies (like the SEC) disclosing financial or operational information.
Outperforming: Achieving a higher return or growth rate than a specific benchmark or index.
Core Segments: Primary business divisions within a company, each focusing on specific products or services.
Reportable Assets: Investments that must be disclosed in regulatory filings due to their size or regulatory requirements.
Mission-Critical Operations: Essential activities or systems whose failure would severely impact an organization’s functioning.
Recurring Contracts: Agreements that provide ongoing revenue through repeated services or product sales over time.

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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. JPMorgan Chase is an advertising partner of Motley Fool Money. Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, JPMorgan Chase, Netflix, Spotify Technology, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends RTX. The Motley Fool has a disclosure policy.