Textron (TXT) Downgraded to Hold at Zacks Investment Research

Textron (NYSE:TXT) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued to clients and investors on Monday.

According to Zacks, “Textron ended third quarter of 2018 on a dismal note, with both its top and bottom line figures having missed the respective Zacks Consensus estimates. 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. Its geographically diverse network of aircraft, defense & intelligence, industrial, and finance businesses negates any specific business risk. However, the provided poor delivery figures during the third quarter, which in turn dragged down its revenue. Consequently, the company narrowed its 2018 bottom line expectations. With the current U.S. economy being in favor of expanding interest rate, the credit market may not turn out to be much favorable for Textron. Moreover, its shares underperformed the industry in the last year.”

TXT has been the subject of several other reports. Cowen restated a “$66.44” rating and issued a $73.00 target price on shares of Textron in a research report on Wednesday, July 18th. ValuEngine cut shares of Textron from a “buy” rating to a “hold” rating in a research report on Thursday. Bank of America set a $78.00 target price on shares of Textron and gave the company a “buy” rating in a research report on Wednesday, July 25th. Citigroup boosted their target price on shares of Textron to $76.00 and gave the company a “buy” rating in a research report on Thursday, July 19th. Finally, Morgan Stanley set a $71.00 target price on shares of Textron and gave the company a “hold” rating in a research report on Thursday, October 11th. Four analysts have rated the stock with a hold rating and six have assigned a buy rating to the stock. The company currently has an average rating of “Buy” and a consensus price target of $74.64.

Shares of Textron stock opened at $56.75 on Monday. Textron has a twelve month low of $52.33 and a twelve month high of $72.87. The company has a quick ratio of 0.84, a current ratio of 2.02 and a debt-to-equity ratio of 0.55. The stock has a market capitalization of $14.10 billion, a price-to-earnings ratio of 23.16, a price-to-earnings-growth ratio of 1.56 and a beta of 1.40.

Textron (NYSE:TXT) last issued its quarterly earnings data on Thursday, October 18th. The aerospace company reported $0.61 earnings per share for the quarter, missing the consensus estimate of $0.76 by ($0.15). Textron had a return on equity of 13.72% and a net margin of 6.11%. The business had revenue of $3.20 billion during the quarter, compared to analyst estimates of $3.52 billion. During the same quarter last year, the firm earned $0.65 EPS. Textron’s revenue for the quarter was down 8.2% compared to the same quarter last year. As a group, equities research analysts expect that Textron will post 3.2 EPS for the current fiscal year.

In related news, EVP E Robert Lupone sold 45,000 shares of the company’s stock in a transaction that occurred on Tuesday, July 31st. The shares were sold at an average price of $67.50, for a total transaction of $3,037,500.00. Following the completion of the transaction, the executive vice president now directly owns 121,838 shares in the company, valued at approximately $8,224,065. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, VP Julie G. Duffy sold 6,562 shares of the company’s stock in a transaction that occurred on Tuesday, July 31st. The stock was sold at an average price of $68.13, for a total transaction of $447,069.06. Following 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. 1.20% of the stock is owned by corporate insiders.

A number of hedge funds have recently added to or reduced their stakes in TXT. Centaurus Financial Inc. bought a new stake in Textron during the 2nd quarter worth approximately $105,000. BlueMountain Capital Management LLC bought a new stake in Textron during the 2nd quarter worth approximately $139,000. First Hawaiian Bank bought a new stake in Textron during the 3rd quarter worth approximately $140,000. Piedmont Investment Advisors LLC bought a new stake in Textron during the 2nd quarter worth approximately $197,000. Finally, Colony Group LLC bought a new stake in Textron during the 2nd quarter worth approximately $202,000. Institutional investors and hedge funds own 82.72% of the company’s stock.

About Textron

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.

Recommended Story: What is the Dividend Aristocrat Index?

Get a free copy of the Zacks research report on Textron (TXT)

For more information about research offerings from Zacks Investment Research, visit Zacks.com

Analyst Recommendations for Textron (NYSE:TXT)

Receive News & Ratings for Textron Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Textron and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply