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

Textron Inc. (NYSE:TXT)’s stock price gapped down prior to trading on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $94.01, but opened at $84.76. Textron shares last traded at $83.11, with a volume of 1,327,636 shares trading hands.

The aerospace company reported $1.20 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.28 by ($0.08). Textron had a return on equity of 16.30% and a net margin of 6.75%. The business had revenue of $3.14 billion for the quarter, compared to analysts’ expectations of $3.29 billion. During the same period in the previous year, the company earned $1.05 EPS. Textron’s quarterly revenue was up 3.7% compared to the same quarter last year.

Textron Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Monday, July 1st. Investors of record on Friday, June 14th will be issued a $0.02 dividend. This represents a $0.08 dividend on an annualized basis and a dividend yield of 0.09%. The ex-dividend date is Friday, June 14th. Textron’s dividend payout ratio is currently 1.71%.

Wall Street Analyst Weigh In

A number of equities research analysts recently issued reports on TXT shares. The Goldman Sachs Group upped their price objective on shares of Textron from $103.00 to $120.00 and gave the company a “buy” rating in a report on Tuesday, April 16th. UBS Group upped their target price on shares of Textron from $77.00 to $81.00 and gave the company a “sell” rating in a research report on Friday, January 26th. Bank of America raised shares of Textron from a “neutral” rating to a “buy” rating and upped their target price for the company from $85.00 to $105.00 in a research report on Friday, March 8th. StockNews.com cut shares of Textron from a “strong-buy” rating to a “buy” rating in a research report on Friday. Finally, Citigroup upped their target price on shares of Textron from $104.00 to $111.00 and gave the company a “buy” rating in a research report on Thursday, April 4th. One analyst has rated the stock with a sell rating, two have given a hold rating and six have assigned a buy rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average price target of $95.63.

Hedge Funds Weigh In On Textron

Several hedge funds have recently added to or reduced their stakes in the stock. Pinnacle Associates Ltd. increased its stake in Textron by 0.6% in the first quarter. Pinnacle Associates Ltd. now owns 30,614 shares of the aerospace company’s stock valued at $2,937,000 after purchasing an additional 181 shares during the last quarter. YHB Investment Advisors Inc. purchased a new position in Textron in the first quarter valued at approximately $65,000. Aaron Wealth Advisors LLC increased its stake in Textron by 9.5% in the first quarter. Aaron Wealth Advisors LLC now owns 6,875 shares of the aerospace company’s stock valued at $660,000 after purchasing an additional 598 shares during the last quarter. Whalen Wealth Management Inc. increased its stake in Textron by 4.0% in the first quarter. Whalen Wealth Management Inc. now owns 8,010 shares of the aerospace company’s stock valued at $768,000 after purchasing an additional 310 shares during the last quarter. Finally, Cambridge Investment Research Advisors Inc. increased its stake in Textron by 6.3% in the first quarter. Cambridge Investment Research Advisors Inc. now owns 16,869 shares of the aerospace company’s stock valued at $1,618,000 after purchasing an additional 1,003 shares during the last quarter. 86.03% of the stock is currently owned by hedge funds and other institutional investors.

Textron Price Performance

The company has a market capitalization of $16.64 billion, a PE ratio of 18.49, a price-to-earnings-growth ratio of 1.33 and a beta of 1.30. The company has a debt-to-equity ratio of 0.41, a current ratio of 1.66 and a quick ratio of 1.03. The company’s 50 day simple moving average is $92.10 and its 200 day simple moving average is $83.86.

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.