Textron (NYSE:TXT) Cut to Buy at Wall Street Zen

Key Points

• Textron has been downgraded from a "strong-buy" to a "buy" rating by analysts at Wall Street Zen, indicating a shift in market perception.
• The company's recent earnings report showed an EPS of $1.55, exceeding expectations and marking a revenue increase of 5.4% year-over-year.
• Multiple analysts have differing price targets for Textron, with a consensus target price of $92.67 and an average rating of "Moderate Buy."

Wall Street Zen downgraded shares of Textron (NYSE:TXT - Free Report) from a strong-buy rating to a buy rating in a research report released on Saturday.

A number of other equities analysts have also commented on the stock. The Goldman Sachs Group reiterated a "neutral" rating and issued a $85.00 price objective (down previously from $95.00) on shares of Textron in a report on Tuesday, July 1st. Morgan Stanley upped their target price on shares of Textron from $71.00 to $86.00 and gave the company an "equal weight" rating in a research note on Thursday, July 17th. Susquehanna upped their target price on shares of Textron from $90.00 to $95.00 and gave the company a "positive" rating in a research note on Friday, July 25th. Barclays upped their target price on shares of Textron from $95.00 to $105.00 and gave the company an "overweight" rating in a research note on Tuesday, July 29th. Finally, UBS Group upgraded shares of Textron from a "sell" rating to a "neutral" rating and upped their target price for the company from $73.00 to $88.00 in a research note on Monday, July 28th. Six research analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. According to MarketBeat.com, Textron currently has an average rating of "Moderate Buy" and a consensus price target of $92.67.

Textron Stock Up 0.7%

TXT stock traded up $0.58 during trading on Friday, reaching $84.07. The stock had a trading volume of 48,219 shares, compared to its average volume of 1,499,792. Textron has a 1-year low of $57.70 and a 1-year high of $91.30. The company has a current ratio of 1.84, a quick ratio of 0.84 and a debt-to-equity ratio of 0.45. The company has a market capitalization of $14.98 billion, a P/E ratio of 19.01, a PEG ratio of 1.36 and a beta of 1.14. The firm has a fifty day moving average price of $80.89 and a 200 day moving average price of $76.12.

Textron (NYSE:TXT - Get Free Report) last issued its quarterly earnings data on Thursday, July 24th. The aerospace company reported $1.55 EPS for the quarter, topping analysts' consensus estimates of $1.45 by $0.10. Textron had a net margin of 5.80% and a return on equity of 14.26%. The firm had revenue of $3.72 billion for the quarter, compared to analyst estimates of $3.64 billion. During the same quarter in the previous year, the business posted $1.54 EPS. The firm's revenue was up 5.4% compared to the same quarter last year. Textron has set its FY 2025 guidance at 6.000-6.200 EPS. On average, equities analysts anticipate that Textron will post 6.12 earnings per share for the current year.

Textron Dividend Announcement

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

Insider Buying and Selling

In other Textron news, EVP Julie G. Duffy sold 28,543 shares of the company's stock in a transaction dated Friday, July 25th. The shares were sold at an average price of $79.37, for a total value of $2,265,457.91. Following the completion of the transaction, the executive vice president owned 37,624 shares in the company, valued at approximately $2,986,216.88. This represents a 43.14% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Company insiders own 1.70% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in TXT. Tidal Investments LLC boosted its holdings in shares of Textron by 13.0% in the fourth quarter. Tidal Investments LLC now owns 4,192 shares of the aerospace company's stock valued at $321,000 after acquiring an additional 481 shares in the last quarter. Vise Technologies Inc. boosted its holdings in shares of Textron by 66.7% in the fourth quarter. Vise Technologies Inc. now owns 5,521 shares of the aerospace company's stock valued at $422,000 after acquiring an additional 2,209 shares in the last quarter. Toronto Dominion Bank boosted its holdings in shares of Textron by 7.0% in the fourth quarter. Toronto Dominion Bank now owns 99,507 shares of the aerospace company's stock valued at $7,611,000 after acquiring an additional 6,509 shares in the last quarter. Mackenzie Financial Corp lifted its stake in Textron by 14.2% during the fourth quarter. Mackenzie Financial Corp now owns 210,081 shares of the aerospace company's stock valued at $16,069,000 after purchasing an additional 26,185 shares during the last quarter. Finally, Integrated Advisors Network LLC lifted its stake in Textron by 107.1% during the fourth quarter. Integrated Advisors Network LLC now owns 11,199 shares of the aerospace company's stock valued at $857,000 after purchasing an additional 5,791 shares during the last quarter. 86.03% of the stock is currently owned by institutional investors.

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.