Textron (NYSE:TXT) Shares Gap Down After Earnings Miss

Textron Inc. (NYSE:TXT) shares gapped down prior to trading on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $86.87, but opened at $82.00. Textron shares last traded at $81.14, with a volume of 331,099 shares traded.

The aerospace company reported $1.40 earnings per share for the quarter, missing the consensus estimate of $1.46 by ($0.06). Textron had a net margin of 6.67% and a return on equity of 16.41%. The business had revenue of $3.43 billion for the quarter, compared to the consensus estimate of $3.50 billion. During the same quarter last year, the firm earned $1.49 EPS. The company’s revenue for the quarter was up 2.5% on a year-over-year basis.

Textron Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, January 1st. Stockholders of record on Friday, December 13th will be given a dividend of $0.02 per share. This represents a $0.08 annualized dividend and a dividend yield of 0.10%. The ex-dividend date is Friday, December 13th. Textron’s dividend payout ratio is 1.69%.

Analyst Upgrades and Downgrades

A number of brokerages recently weighed in on TXT. TD Cowen lowered shares of Textron from a “buy” rating to a “hold” rating and reduced their target price for the stock from $103.00 to $95.00 in a research note on Wednesday, September 25th. JPMorgan Chase & Co. decreased their price objective on Textron from $100.00 to $95.00 and set a “neutral” rating for the company in a report on Monday, October 14th. Citigroup boosted their target price on Textron from $111.00 to $115.00 and gave the company a “buy” rating in a research note on Monday, July 22nd. Bank of America raised their price target on shares of Textron from $105.00 to $110.00 and gave the stock a “buy” rating in a research note on Tuesday, July 23rd. Finally, StockNews.com lowered shares of Textron from a “strong-buy” rating to a “buy” rating in a research report on Thursday, September 12th. One research analyst has rated the stock with a sell rating, three have issued a hold rating and six have issued a buy rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $101.56.

Hedge Funds Weigh In On Textron

A number of institutional investors have recently added to or reduced their stakes in TXT. Davis Investment Partners LLC lifted its stake in Textron by 0.8% in the third quarter. Davis Investment Partners LLC now owns 14,828 shares of the aerospace company’s stock valued at $1,290,000 after acquiring an additional 118 shares during the last quarter. Altman Advisors Inc. raised its holdings in shares of Textron by 0.6% in the 2nd quarter. Altman Advisors Inc. now owns 22,057 shares of the aerospace company’s stock valued at $1,894,000 after purchasing an additional 129 shares during the period. Sumitomo Mitsui DS Asset Management Company Ltd lifted its stake in Textron by 0.8% in the 2nd quarter. Sumitomo Mitsui DS Asset Management Company Ltd now owns 18,148 shares of the aerospace company’s stock valued at $1,558,000 after purchasing an additional 146 shares during the last quarter. Creative Planning grew its holdings in Textron by 0.4% during the third quarter. Creative Planning now owns 37,304 shares of the aerospace company’s stock worth $3,304,000 after purchasing an additional 165 shares during the period. Finally, Benjamin F. Edwards & Company Inc. increased its position in Textron by 4.4% during the second quarter. Benjamin F. Edwards & Company Inc. now owns 4,116 shares of the aerospace company’s stock worth $353,000 after buying an additional 175 shares during the last quarter. 86.03% of the stock is currently owned by institutional investors and hedge funds.

Textron Stock Up 1.1 %

The company has a quick ratio of 0.81, a current ratio of 1.79 and a debt-to-equity ratio of 0.47. The firm has a 50 day simple moving average of $87.70 and a 200-day simple moving average of $88.09. The stock has a market cap of $15.43 billion, a P/E ratio of 17.45, a price-to-earnings-growth ratio of 1.43 and a beta of 1.23.

Textron Company Profile

Textron Inc operates in the aircraft, defense, industrial, and finance businesses worldwide. It operates through six segments: Textron Aviation, Bell, Textron Systems, Industrial, Textron eAviation, and Finance. The Textron Aviation segment manufactures, sells, and services business jets, turboprop and piston engine aircraft, and military trainer and defense aircraft; and offers maintenance, inspection, and repair services, as well as sells commercial parts.