Zacks Investment Research Lowers Textron (NYSE:TXT) to Strong Sell

Zacks Investment Research downgraded shares of Textron (NYSE:TXT) from a hold rating to a strong sell rating in a report issued on Friday, Zacks.com reports. The brokerage currently has $50.00 price target on the aerospace company’s stock.

According to Zacks, “Textron ended the third quarter of 2019 on a mixed note. While its earnings missed the Zacks Consensus Estimate, revenues surpassed the same.  It has a strong presence in diverse areas including business jets and other general aviation aircraft, helicopter, aircraft engines. Textron has been also innovating products to capture more shares in the market place. It continues to witness notable order inflows, which in turn should boost its revenue growth moving ahead. However, Textron operates in a highly competitive market. Furthermore, the certification procedure for its Citation Longitude was delayed by approximately 18 months. This delay was led by issues pertaining to the FAA’s flammability requirements for the Longitude's fuel tank, which led to a rise in overall costs. Its shares have also underperformed the industry in the past year.”

A number of other brokerages have also commented on TXT. ValuEngine raised Textron from a sell rating to a hold rating in a research note on Tuesday, September 10th. Credit Suisse Group dropped their price target on Textron from $52.00 to $50.00 and set a neutral rating for the company in a research note on Friday, October 18th. Bank of America lowered Textron from a buy rating to a neutral rating in a research note on Tuesday, October 22nd. Cowen reissued a buy rating and set a $60.00 price target on shares of Textron in a research note on Thursday, October 17th. Finally, Vertical Research lowered Textron from a buy rating to a hold rating and dropped their price target for the company from $56.00 to $54.00 in a research note on Friday, September 27th. One research analyst has rated the stock with a sell rating, six have given a hold rating and three have issued a buy rating to the stock. Textron presently has an average rating of Hold and an average price target of $54.25.

Shares of Textron stock opened at $47.03 on Friday. The stock has a 50 day moving average of $48.85 and a 200 day moving average of $49.33. Textron has a 12 month low of $42.30 and a 12 month high of $58.00. The firm has a market cap of $10.92 billion, a PE ratio of 14.08, a PEG ratio of 1.37 and a beta of 1.77. The company has a current ratio of 2.15, a quick ratio of 0.74 and a debt-to-equity ratio of 0.66.

Textron (NYSE:TXT) last announced its quarterly earnings results on Thursday, October 17th. The aerospace company reported $0.95 EPS for the quarter, beating analysts’ consensus estimates of $0.85 by $0.10. Textron had a return on equity of 16.88% and a net margin of 6.46%. The company had revenue of $3.26 billion during the quarter, compared to analyst estimates of $3.31 billion. During the same period in the prior year, the company earned $0.61 earnings per share. The firm’s revenue was up 1.8% on a year-over-year basis. As a group, equities research analysts forecast that Textron will post 3.73 earnings per share for the current fiscal year.

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 paid a $0.02 dividend. This represents a $0.08 annualized dividend and a dividend yield of 0.17%. The ex-dividend date of this dividend is Thursday, December 12th. Textron’s payout ratio is 2.40%.

Several large investors have recently bought and sold shares of the company. Price T Rowe Associates Inc. MD lifted its stake in shares of Textron by 2.3% in the 2nd quarter. Price T Rowe Associates Inc. MD now owns 29,575,191 shares of the aerospace company’s stock valued at $1,568,668,000 after purchasing an additional 651,668 shares during the last quarter. Invesco Ltd. lifted its stake in shares of Textron by 25.8% in the 2nd quarter. Invesco Ltd. now owns 6,305,455 shares of the aerospace company’s stock valued at $334,441,000 after purchasing an additional 1,294,521 shares during the last quarter. Primecap Management Co. CA lifted its stake in shares of Textron by 4.1% in the 2nd quarter. Primecap Management Co. CA now owns 5,509,660 shares of the aerospace company’s stock valued at $292,232,000 after purchasing an additional 217,300 shares during the last quarter. Victory Capital Management Inc. lifted its stake in shares of Textron by 9.2% in the 2nd quarter. Victory Capital Management Inc. now owns 5,105,820 shares of the aerospace company’s stock valued at $270,812,000 after purchasing an additional 431,683 shares during the last quarter. Finally, Nuveen Asset Management LLC lifted its stake in shares of Textron by 1,591.3% in the 2nd quarter. Nuveen Asset Management LLC now owns 2,752,485 shares of the aerospace company’s stock valued at $145,992,000 after purchasing an additional 2,589,744 shares during the last quarter. 82.66% of the stock is owned by institutional investors and hedge funds.

Textron Company Profile

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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