Wall Street Zen Upgrades Textron (NYSE:TXT) to "Strong-Buy"

Key Points

• Textron was upgraded from a "buy" to a "strong-buy" rating by analysts at Wall Street Zen, indicating increased confidence in the stock's performance.
• Analysts have varied price targets for Textron, with Jefferies Financial Group raising their target to $95.00, while Goldman Sachs lowered theirs to $85.00, reflecting differing opinions on its future value.
• For Q2, Textron reported $1.55 earnings per share, surpassing analyst expectations, and anticipates earnings of 6.000-6.200 EPS for FY 2025.

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

Several other brokerages also recently weighed in on TXT. Jefferies Financial Group reiterated a "buy" rating and set a $95.00 target price (up previously from $85.00) on shares of Textron in a research note on Thursday, June 12th. The Goldman Sachs Group restated a "neutral" rating and issued a $85.00 price objective (down previously from $95.00) on shares of Textron in a research report on Tuesday, July 1st. Morgan Stanley raised their price objective on shares of Textron from $71.00 to $86.00 and gave the company an "equal weight" rating in a research report on Thursday, July 17th. UBS Group upgraded shares of Textron from a "sell" rating to a "neutral" rating and raised their price objective for the company from $73.00 to $88.00 in a research report on Monday, July 28th. Finally, Barclays raised their price objective on shares of Textron from $95.00 to $105.00 and gave the company an "overweight" rating in a research report on Tuesday, July 29th. Six equities research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company's stock. According to MarketBeat.com, Textron presently has an average rating of "Moderate Buy" and an average target price of $92.67.

Textron Stock Performance

Shares of TXT traded up $0.14 during mid-day trading on Friday, hitting $80.67. 376,234 shares of the company's stock were exchanged, compared to its average volume of 1,500,858. Textron has a fifty-two week low of $57.70 and a fifty-two week high of $91.30. The firm has a market capitalization of $14.38 billion, a P/E ratio of 18.25, a P/E/G ratio of 1.35 and a beta of 1.14. The business's 50 day moving average is $80.98 and its two-hundred day moving average is $75.51. The company has a current ratio of 1.84, a quick ratio of 0.84 and a debt-to-equity ratio of 0.45.

Textron (NYSE:TXT - Get Free Report) last announced its earnings results on Thursday, July 24th. The aerospace company reported $1.55 earnings per share for the quarter, topping 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 during the quarter, compared to the consensus estimate of $3.64 billion. During the same quarter in the prior year, the firm earned $1.54 earnings per share. The business's quarterly 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 expect that Textron will post 6.12 earnings per share for the current year.

Textron Dividend Announcement

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

Insider Activity

In other news, EVP Julie G. Duffy sold 28,543 shares of Textron stock in a transaction that occurred on Friday, July 25th. The shares were sold at an average price of $79.37, for a total transaction of $2,265,457.91. Following the completion of the sale, the executive vice president directly 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 transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 1.70% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. Banque Cantonale Vaudoise acquired a new position in shares of Textron during the 1st quarter worth approximately $25,000. Assetmark Inc. raised its position in shares of Textron by 191.9% during the 2nd quarter. Assetmark Inc. now owns 324 shares of the aerospace company's stock worth $26,000 after purchasing an additional 213 shares during the last quarter. Atlantic Union Bankshares Corp acquired a new position in shares of Textron during the 2nd quarter worth approximately $27,000. Harvest Fund Management Co. Ltd raised its position in shares of Textron by 100.0% during the 1st quarter. Harvest Fund Management Co. Ltd now owns 524 shares of the aerospace company's stock worth $39,000 after purchasing an additional 262 shares during the last quarter. Finally, Zions Bancorporation National Association UT acquired a new position in shares of Textron during the 1st quarter worth approximately $41,000. 86.03% of the stock is currently owned by institutional investors and hedge funds.

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.