Textron Inc. (NYSE:TXT) Plans $0.02 Quarterly Dividend

Key Points

• Textron Inc. declared a quarterly dividend of $0.02 per share (annualized $0.08) with an ex‑dividend/record date of June 12 and a payment date of July 1, implying a yield of about 0.1%.
• The company reported quarterly EPS of $1.73 (just under estimates) and revenue of $4.18 billion, up 15.6% year‑over‑year, and has a very low dividend payout ratio (~1.2%), indicating earnings comfortably cover the dividend.
• Notable insider selling occurred—Chairman Scott Donnelly sold 219,619 shares—and while insiders have trimmed positions, institutional ownership is high (about 86%) with several large funds increasing stakes.

Textron Inc. (NYSE:TXT - Get Free Report) announced a quarterly dividend on Wednesday, April 29th. Shareholders of record on Friday, June 12th will be paid a dividend of 0.02 per share by the aerospace company on Wednesday, July 1st. This represents a c) dividend on an annualized basis and a yield of 0.1%. The ex-dividend date is Friday, June 12th.

Textron has a dividend payout ratio of 1.2% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect Textron to earn $7.35 per share next year, which means the company should continue to be able to cover its $0.08 annual dividend with an expected future payout ratio of 1.1%.

Textron Trading Up 1.8%

Textron stock traded up $1.57 during trading hours on Wednesday, reaching $89.71. The stock had a trading volume of 2,612,712 shares, compared to its average volume of 1,641,918. The stock has a market cap of $15.62 billion, a PE ratio of 17.55, a PEG ratio of 1.33 and a beta of 0.97. Textron has a 52 week low of $68.83 and a 52 week high of $101.57. The company has a debt-to-equity ratio of 0.49, a current ratio of 1.97 and a quick ratio of 0.99. The company has a fifty day simple moving average of $92.29 and a 200-day simple moving average of $88.88.

Textron (NYSE:TXT - Get Free Report) last announced its quarterly earnings results on Wednesday, January 28th. The aerospace company reported $1.73 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.74 by ($0.01). The firm had revenue of $4.18 billion during the quarter, compared to the consensus estimate of $4.11 billion. Textron had a return on equity of 14.63% and a net margin of 6.22%.Textron's revenue was up 15.6% on a year-over-year basis. During the same period last year, the business earned $1.34 EPS. Analysts forecast that Textron will post 6.55 EPS for the current fiscal year.

Insider Activity at Textron

In related news, Chairman Scott C. Donnelly sold 219,619 shares of Textron stock in a transaction dated Friday, February 13th. The shares were sold at an average price of $98.41, for a total transaction of $21,612,705.79. Following the completion of the transaction, the chairman directly owned 742,418 shares of the company's stock, valued at $73,061,355.38. This trade represents a 22.83% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, EVP Julie G. Duffy sold 19,857 shares of Textron stock in a transaction dated Friday, February 13th. The shares were sold at an average price of $98.70, for a total transaction of $1,959,885.90. Following the transaction, the executive vice president directly owned 37,039 shares of the company's stock, valued at approximately $3,655,749.30. This trade represents a 34.90% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 304,473 shares of company stock worth $29,976,723 over the last 90 days. 1.90% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of TXT. AQR Capital Management LLC raised its holdings in Textron by 51.1% in the fourth quarter. AQR Capital Management LLC now owns 5,357,182 shares of the aerospace company's stock worth $466,986,000 after buying an additional 1,811,787 shares during the last quarter. Adage Capital Partners GP L.L.C. raised its holdings in Textron by 270.7% in the second quarter. Adage Capital Partners GP L.L.C. now owns 1,005,843 shares of the aerospace company's stock worth $80,759,000 after buying an additional 734,478 shares during the last quarter. Balyasny Asset Management L.P. purchased a new position in Textron in the third quarter worth about $56,255,000. SG Americas Securities LLC raised its holdings in Textron by 8,087.0% in the fourth quarter. SG Americas Securities LLC now owns 429,492 shares of the aerospace company's stock worth $37,439,000 after buying an additional 424,246 shares during the last quarter. Finally, Dimensional Fund Advisors LP raised its holdings in Textron by 18.9% in the fourth quarter. Dimensional Fund Advisors LP now owns 2,551,781 shares of the aerospace company's stock worth $222,455,000 after buying an additional 405,314 shares during the last quarter. 86.03% of the stock is owned by hedge funds and other institutional investors.

About Textron

Textron Inc is a global, multi-industry manufacturing company headquartered in Providence, Rhode Island. The company designs, manufactures and services a diverse range of products for the aerospace, defense and industrial markets. Textron operates through four primary business segments—Textron Aviation, Bell, Textron Systems and Industrial—each of which serves customers around the world.

Textron Aviation is known for its Cessna and Beechcraft branded business jets and turboprop aircraft, offering models that range from light jets and turboprops to larger cabin aircraft designed for corporate and charter use.

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