Textron (TXT) Downgraded by Zacks Investment Research
Textron (NYSE:TXT) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a note issued to investors on Tuesday.
According to Zacks, “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. Its geographically diverse network of aircraft, defense & intelligence, industrial, and finance businesses negates any specific business risk. While Textron’s legacy products continue to expand their well established footprint across the globe, the company has been innovating new products to capture more shares in the market place. The company also outperformed the industry in the last year. However, the discontinuation of its SFW product line has been weighing heavily on Textron Systems segment’s growth. Textron also derives a major portion of its revenues from international sales, exposing it to the risk of currency fluctuations. In addition, it may be challenged by changes in economic conditions and political turmoil.”
A number of other brokerages have also recently issued reports on TXT. ValuEngine cut Textron from a “strong-buy” rating to a “buy” rating in a research report on Saturday, June 2nd. JPMorgan Chase & Co. upped their price target on Textron from $74.00 to $77.00 and gave the stock a “$66.52” rating in a report on Monday, July 23rd. Morgan Stanley upped their price target on Textron from $64.00 to $65.00 and gave the stock an “equal weight” rating in a report on Thursday, July 12th. Citigroup upped their price target on Textron to $76.00 and gave the stock a “buy” rating in a report on Thursday, July 19th. Finally, Bank of America set a $78.00 price target on Textron and gave the stock a “buy” rating in a report on Wednesday, July 25th. Three investment analysts have rated the stock with a hold rating and eight have issued a buy rating to the company. The stock currently has an average rating of “Buy” and an average target price of $72.00.
Textron (NYSE:TXT) last announced its earnings results on Wednesday, July 18th. The aerospace company reported $0.87 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.70 by $0.17. The firm had revenue of $3.73 billion during the quarter, compared to analysts’ expectations of $3.51 billion. Textron had a return on equity of 13.93% and a net margin of 3.21%. The company’s revenue was up 3.4% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.60 earnings per share. sell-side analysts anticipate that Textron will post 3.33 earnings per share for the current year.
In other news, Chairman Scott C. Donnelly sold 82,647 shares of the company’s stock in a transaction that occurred on Friday, July 27th. The stock was sold at an average price of $67.17, for a total transaction of $5,551,398.99. Following the completion of the transaction, the chairman now directly owns 639,916 shares in the company, valued at $42,983,157.72. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, VP Julie G. Duffy sold 6,562 shares of the company’s stock in a transaction on Tuesday, July 31st. The shares were sold at an average price of $68.13, for a total value of $447,069.06. Following the completion of the transaction, the vice president now owns 22,535 shares of the company’s stock, valued at $1,535,309.55. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 134,209 shares of company stock valued at $9,035,968. Corporate insiders own 1.20% of the company’s stock.
Several hedge funds and other institutional investors have recently modified their holdings of TXT. Levin Capital Strategies L.P. raised its stake in shares of Textron by 446.3% in the first quarter. Levin Capital Strategies L.P. now owns 1,034,266 shares of the aerospace company’s stock valued at $60,991,000 after purchasing an additional 844,945 shares in the last quarter. Janus Henderson Group PLC raised its stake in shares of Textron by 439.9% in the second quarter. Janus Henderson Group PLC now owns 560,129 shares of the aerospace company’s stock valued at $36,919,000 after purchasing an additional 456,384 shares in the last quarter. Acadian Asset Management LLC acquired a new position in shares of Textron in the second quarter valued at $25,458,000. BlackRock Inc. raised its stake in shares of Textron by 2.0% in the first quarter. BlackRock Inc. now owns 19,225,987 shares of the aerospace company’s stock valued at $1,133,757,000 after purchasing an additional 374,087 shares in the last quarter. Finally, Carillon Tower Advisers Inc. acquired a new position in shares of Textron in the first quarter valued at $205,501,000. Institutional investors and hedge funds own 83.26% of the company’s stock.
Textron Inc operates in the aircraft, defense, industrial, and finance businesses worldwide. The company's Textron Aviation segment manufactures and sells business jets, turboprop and piston engine aircraft, and military trainer and defense aircraft; and commercial parts, as well as provides maintenance, inspection, and repair services.
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