Textron Inc. (TXT) Downgraded to “Sell” at Zacks Investment Research
Zacks Investment Research lowered shares of Textron Inc. (NYSE:TXT) from a hold rating to a sell rating in a report released on Tuesday.
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. The company 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.”
A number of other brokerages have also recently commented on TXT. ValuEngine cut Textron from a buy rating to a hold rating in a research note on Monday, October 2nd. Jefferies Group LLC reaffirmed a buy rating and issued a $65.00 price target on shares of Textron in a research note on Friday, October 20th. Cowen and Company reaffirmed a buy rating and issued a $60.00 price target on shares of Textron in a research note on Thursday, October 19th. Stephens reaffirmed an equal weight rating and issued a $63.00 price target (up from $54.00) on shares of Textron in a research note on Friday, October 13th. Finally, Citigroup Inc. lifted their price target on Textron from $54.00 to $61.00 and gave the stock a buy rating in a research note on Friday, October 20th. Four research analysts have rated the stock with a sell rating, three have issued a hold rating and seven have issued a buy rating to the stock. The stock has an average rating of Hold and a consensus target price of $56.92.
Textron (NYSE:TXT) opened at $54.27 on Tuesday. The company has a debt-to-equity ratio of 0.67, a current ratio of 2.08 and a quick ratio of 0.96. The company has a market capitalization of $14,330.07, a P/E ratio of 21.67, a price-to-earnings-growth ratio of 2.50 and a beta of 1.58. Textron has a 12 month low of $43.41 and a 12 month high of $55.80.
Textron (NYSE:TXT) last announced its quarterly earnings results 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 business had revenue of $3.48 billion for the quarter, compared to analysts’ expectations of $3.55 billion. Textron had a return on equity of 12.02% and a net margin of 4.48%. The business’s quarterly revenue was up 7.2% on a year-over-year basis. During the same period in the previous year, the firm earned $0.61 EPS. equities analysts predict that Textron will post 2.47 earnings per share for the current fiscal year.
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 given a $0.02 dividend. The ex-dividend date is Thursday, December 14th. This represents a $0.08 dividend on an annualized basis and a dividend yield of 0.15%. Textron’s dividend payout ratio is currently 3.45%.
Several hedge funds have recently modified their holdings of TXT. Bessemer Group Inc. grew its position in shares of Textron by 66.7% in the 2nd quarter. Bessemer Group Inc. now owns 2,607 shares of the aerospace company’s stock worth $123,000 after buying an additional 1,043 shares during the last quarter. Global X Management Co. LLC grew its position in shares of Textron by 16.5% in the 2nd quarter. Global X Management Co. LLC now owns 3,053 shares of the aerospace company’s stock worth $144,000 after buying an additional 433 shares during the last quarter. Parkside Financial Bank & Trust grew its position in shares of Textron by 0.8% in the 2nd quarter. Parkside Financial Bank & Trust now owns 3,226 shares of the aerospace company’s stock worth $152,000 after buying an additional 26 shares during the last quarter. GABELLI & Co INVESTMENT ADVISERS INC. bought a new stake in shares of Textron during the third quarter valued at approximately $210,000. Finally, Heartland Advisors Inc. bought a new stake in shares of Textron during the third quarter valued at approximately $211,000. Hedge funds and other institutional investors own 81.94% of the company’s stock.
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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