Textron Inc. (TXT) Cut to “Sell” at Zacks Investment Research
Zacks Investment Research downgraded shares of Textron Inc. (NYSE:TXT) from a hold rating to a sell rating in a research note published on Friday morning.
According to Zacks, “Textron posted mixed results in the third quarter of 2017. While the company’s earnings surpassed the Zacks Consensus Estimate, its sales numbers failed to meet the consensus mark. However, year-over-year results remained impressive on both top and bottom-line fronts. Nevertheless, Textron’s Aviation segment has been exhibiting weak performance due to lack of orders for a few of its products. Also, the company needs to increase investments to stay afloat in a highly competitive market. Moreover, it underperformed its broader industry over a year. Further, the company operates in a highly competitive market, wherein some of its peers may have more extensive or specialized business segments. Textron is known globally for its most recognizable and valuable brand names, such as Bell Helicopter, Cessna Aircraft Company, Jacobsen, Kautex, E-Z-GO and Greenlee.”
TXT has been the subject of several other reports. ValuEngine upgraded Textron from a hold rating to a buy rating in a research report on Friday, September 8th. Credit Suisse Group restated an outperform rating and set a $55.00 target price (up from $50.00) on shares of Textron in a research report on Thursday, July 20th. Jefferies Group LLC restated a buy rating and set a $60.00 target price on shares of Textron in a research report on Tuesday, September 26th. Wells Fargo & Company boosted their target price on Textron from $54.00 to $59.00 and gave the stock an outperform rating in a research report on Friday, October 20th. Finally, Bank of America Corporation lowered Textron from a buy rating to an underperform rating and decreased their target price for the stock from $53.00 to $45.00 in a research report on Friday, July 21st. Four research analysts have rated the stock with a sell rating, three have assigned a hold rating and seven have assigned a buy rating to the company’s stock. The stock currently has an average rating of Hold and an average price target of $56.92.
Shares of Textron (NYSE:TXT) opened at $52.97 on Friday. The company has a quick ratio of 0.96, a current ratio of 2.08 and a debt-to-equity ratio of 0.67. The company has a market capitalization of $13,953.38, a PE ratio of 21.10, a P/E/G ratio of 2.43 and a beta of 1.58. Textron has a 12-month low of $43.66 and a 12-month high of $55.80.
Textron (NYSE:TXT) last announced its quarterly earnings data on Thursday, October 19th. The aerospace company reported $0.65 EPS for the quarter, topping the Zacks’ consensus estimate of $0.62 by $0.03. The firm had revenue of $3.48 billion during the quarter, compared to analyst estimates of $3.55 billion. Textron had a return on equity of 12.02% and a net margin of 4.48%. The company’s revenue was up 7.2% on a year-over-year basis. During the same period last year, the company earned $0.61 earnings per share. analysts anticipate that Textron will post 2.47 EPS for the current year.
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The firm also recently disclosed a quarterly dividend, which will be paid on Monday, January 1st. Stockholders of record on Friday, December 15th will be issued a dividend of $0.02 per share. This represents a $0.08 annualized dividend and a dividend yield of 0.15%. The ex-dividend date of this dividend is Thursday, December 14th. Textron’s dividend payout ratio (DPR) is presently 3.45%.
Large investors have recently added to or reduced their stakes in the company. Invictus RG bought a new position in shares of Textron during the 3rd quarter valued at about $115,000. Bessemer Group Inc. lifted its holdings in shares of Textron by 66.7% during the 2nd quarter. Bessemer Group Inc. now owns 2,607 shares of the aerospace company’s stock valued at $123,000 after purchasing an additional 1,043 shares in the last quarter. Global X Management Co. LLC lifted its holdings in shares of Textron by 16.5% during the 2nd quarter. Global X Management Co. LLC now owns 3,053 shares of the aerospace company’s stock valued at $144,000 after purchasing an additional 433 shares in the last quarter. Parkside Financial Bank & Trust lifted its holdings in shares of Textron by 0.8% during the 2nd quarter. Parkside Financial Bank & Trust now owns 3,226 shares of the aerospace company’s stock valued at $152,000 after purchasing an additional 26 shares in the last quarter. Finally, Commerzbank Aktiengesellschaft FI bought a new position in shares of Textron during the 3rd quarter valued at about $201,000. Institutional investors and hedge funds own 81.83% of the company’s stock.
Textron Company Profile
Textron Inc is a multi-industry company engaged in aircraft, defense, industrial and finance businesses to provide customers with products and services across the world. The Company operates through five segments: Textron Aviation, Bell, Textron Systems, Industrial and Finance. The Textron Aviation segment is engaged in general aviation.
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