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

Textron Inc. (NYSE:TXT)’s stock price gapped down prior to trading on Thursday after the company announced weaker than expected quarterly earnings. 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.

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

Textron Dividend Announcement

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

Analyst Ratings Changes

TXT has been the subject of several recent analyst reports. Citigroup increased their price objective on Textron from $111.00 to $115.00 and gave the stock a “buy” rating in a research note on Monday, July 22nd. Morgan Stanley downgraded shares of Textron from an “overweight” rating to an “equal weight” rating and set a $95.00 price target for the company. in a report on Thursday, August 8th. UBS Group decreased their price objective on shares of Textron from $87.00 to $79.00 and set a “sell” rating on the stock in a research note on Friday. JPMorgan Chase & Co. cut their target price on shares of Textron from $100.00 to $95.00 and set a “neutral” rating for the company in a research note on Monday, October 14th. Finally, Robert W. Baird dropped their price target on Textron from $109.00 to $100.00 and set an “outperform” rating for the company in a report on Friday. One analyst has rated the stock with a sell rating, three have assigned a hold rating and six have given a buy rating to the company. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of $101.56.

Hedge Funds Weigh In On Textron

A number of hedge funds and other institutional investors have recently bought and sold shares of TXT. Innealta Capital LLC acquired a new position in shares of Textron in the 2nd quarter valued at $25,000. Harel Insurance Investments & Financial Services Ltd. bought a new position in Textron during the second quarter worth about $30,000. Oakworth Capital Inc. acquired a new position in shares of Textron during the 2nd quarter worth about $31,000. Family Firm Inc. bought a new stake in shares of Textron in the 2nd quarter valued at about $40,000. Finally, Truvestments Capital LLC acquired a new stake in shares of Textron in the 1st quarter valued at approximately $48,000. 86.03% of the stock is owned by institutional investors.

Textron Stock Up 1.1 %

The company has a current ratio of 1.79, a quick ratio of 0.81 and a debt-to-equity ratio of 0.47. The firm 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. The firm’s 50 day moving average is $87.70 and its two-hundred day moving average is $88.09.

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.