Resona Asset Management Co. Ltd. Boosts Stock Position in Textron Inc. $TXT

Key Points

• Resona Asset Management Co. Ltd. increased its stake in Textron Inc. by 6.7%, acquiring an additional 3,590 shares, bringing its total holdings to 57,504 shares valued at approximately $4.16 million.
• Textron reported better-than-expected Q2 earnings, with $1.55 EPS surpassing estimates of $1.45, along with revenue of $3.72 billion, exceeding analyst expectations.
• The company declared a quarterly dividend of $0.02 per share, payable on October 1st, reflecting a 0.1% yield and a payout ratio of 1.81%.

Resona Asset Management Co. Ltd. raised its holdings in shares of Textron Inc. (NYSE:TXT - Free Report) by 6.7% in the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 57,504 shares of the aerospace company's stock after buying an additional 3,590 shares during the period. Resona Asset Management Co. Ltd.'s holdings in Textron were worth $4,161,000 at the end of the most recent reporting period.

A number of other hedge funds have also recently modified their holdings of TXT. Cambridge Investment Research Advisors Inc. lifted its position in shares of Textron by 31.0% during the first quarter. Cambridge Investment Research Advisors Inc. now owns 38,424 shares of the aerospace company's stock worth $2,776,000 after purchasing an additional 9,082 shares during the last quarter. Graham Capital Management L.P. raised its position in shares of Textron by 166.8% in the 4th quarter. Graham Capital Management L.P. now owns 67,000 shares of the aerospace company's stock worth $5,125,000 after acquiring an additional 41,888 shares in the last quarter. Mirae Asset Global Investments Co. Ltd. lifted its stake in shares of Textron by 16.1% during the 1st quarter. Mirae Asset Global Investments Co. Ltd. now owns 20,193 shares of the aerospace company's stock worth $1,474,000 after purchasing an additional 2,803 shares during the last quarter. LPL Financial LLC boosted its position in Textron by 4.9% during the first quarter. LPL Financial LLC now owns 89,732 shares of the aerospace company's stock valued at $6,483,000 after purchasing an additional 4,204 shares in the last quarter. Finally, Jupiter Asset Management Ltd. purchased a new position in Textron in the first quarter valued at about $545,000. Institutional investors own 86.03% of the company's stock.

Textron Price Performance

Shares of NYSE:TXT traded up $0.33 during midday trading on Monday, reaching $79.22. 1,571,003 shares of the company's stock traded hands, compared to its average volume of 1,873,751. The company has a market cap of $14.12 billion, a P/E ratio of 17.92, a PEG ratio of 1.29 and a beta of 1.16. The company has a fifty day simple moving average of $80.22 and a two-hundred day simple moving average of $74.74. The company has a debt-to-equity ratio of 0.45, a quick ratio of 0.84 and a current ratio of 1.84. Textron Inc. has a 1 year low of $57.70 and a 1 year high of $91.48.

Textron (NYSE:TXT - Get Free Report) last announced its earnings results on Thursday, July 24th. The aerospace company reported $1.55 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.45 by $0.10. Textron had a net margin of 5.80% and a return on equity of 14.26%. The business had revenue of $3.72 billion for the quarter, compared to analyst estimates of $3.64 billion. During the same quarter last year, the business earned $1.54 earnings per share. The company's revenue for the quarter was up 5.4% compared to the same quarter last year. Equities analysts predict that Textron Inc. will post 6.12 EPS for the current fiscal year.

Textron Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Wednesday, October 1st. Investors of record on Friday, September 12th will be given a dividend of $0.02 per share. This represents a $0.08 annualized dividend and a dividend yield of 0.1%. The ex-dividend date is Friday, September 12th. Textron's payout ratio is presently 1.81%.

Wall Street Analyst Weigh In

A number of analysts have recently weighed in on TXT shares. Susquehanna raised their price target on shares of Textron from $90.00 to $95.00 and gave the company a "positive" rating in a report on Friday, July 25th. Jefferies Financial Group reiterated a "buy" rating and issued a $95.00 target price (up previously from $85.00) on shares of Textron in a research report on Thursday, June 12th. Morgan Stanley raised their price target on shares of Textron from $71.00 to $86.00 and gave the stock an "equal weight" rating in a research report on Thursday, July 17th. UBS Group raised shares of Textron from a "sell" rating to a "neutral" rating and upped their price objective for the company from $73.00 to $88.00 in a report on Monday, July 28th. Finally, Barclays raised their target price on shares of Textron from $95.00 to $105.00 and gave the stock an "overweight" rating in a report on Tuesday, July 29th. Six research analysts have rated the stock with a hold rating and seven have issued a buy rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $92.67.

Insider Activity at Textron

In other Textron news, EVP Julie G. Duffy sold 28,543 shares of the firm's stock in a transaction on Friday, July 25th. The stock was sold at an average price of $79.37, for a total value of $2,265,457.91. Following the transaction, the executive vice president owned 37,624 shares in the company, valued at approximately $2,986,216.88. This trade represents a 43.14% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Insiders own 1.70% of the company's stock.

About Textron

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.