Stock analysts at BofA/Merrill cut their rating on shares of Textron Inc. (NYSE:TXT) from Buy to a new rating of Neutral in their opinion released on October 22. Vertical Research analysts have downgraded their rating of TXT shares from Buy to Hold in a separate flash note to investors on September 27.
Let’s take a glimpse at some insider activity at Textron Inc. (NYSE:TXT) and observe the pattern. The earliest insider trade happened on 03/01/2019. Bamford Mark S parted with a total of 4.5 thousand shares of the firm at average share price of $54.75. The total amount for the sale was set at $246.38 thousand. On completing this exchange, the VP and Corporate Controller account balance was 18.17 thousand shares. The stock lost -8.35 percent from that insider sale. On 02/26/2019, Connor Frank T, Executive Vice President & CFO, did a sale of 83.93 thousand shares at a price of $55.15 per share. This got rid of 4.63 million shares from the insider’s fortune and the stock experienced a -9.01 percent retreat in price since the news became public. This exchange saw 144.45 thousand shares get out from the Executive Vice President & CFO account. On 02/22/2019, Chairman, President & CEO DONNELLY SCOTT C recorded a sale transaction valued at $12.7 million. The sale at $55.04 a share has eliminated 230.65 thousand shares from the insider’s portfolio position. Meanwhile, shares price witnessed -8.83 percent decrease since the transaction reporting date. The company insider is left with 562.97 thousand shares remaining in the account. Lupone E Robert, who works as EVP, General Counsel and Secy at the company, performed a sale of 45 thousand shares in a transaction worth $3.04 million. The disposal recorded on 07/31/2018 was priced at $67.5 per share. The stock price plunged -25.66 percent since the transaction. Lupone E Robert currently holds a stake of 80.26 thousand in TXT stock which is worth $4.09 million after the insider selling.
Textron Inc. (TXT) is most likely going to rise 7.44 percent in the coming 12 months, as per price target approximations compiled by finviz. Nevertheless, they have set the price target at a $65 as 12-month high price target. This represents a whopping 27.55 percent increase from the current trading price of shares. The 52-week median price target given by the analysts is $53, which means a return possibility of 4 percent in comparison with the closing price of the stock of $50.96 in recent trading session. The lowest price set for the stock is $50 which is just above -1.88 percent from TXT share’s price at the end of session.
The stock is lingering around the initial support level of $47.93. After this, the following support is at the zone of $44.95. Up until the time the TXT stock hit levels beyond the current one, bulls should have no alarm. In terms of its momentum, the stock’s RSI hit 73.25 on the daily chart, and this may be a cause for concern. In case the price goes below $44.95 level on closing basis, there may be more profit booking with the stock growing weaker. Still, getting to the $52.6 level may cause a pull-back move approaching $54.29 mark.
In the recent trading session, Textron Inc. (NYSE:TXT) shares gained 0.12% or 0.06 points to reach at $50.96 with a thin trading volume of 1.43 million shares. It opened the trading session at $46.82, the shares rose to $51.32 and dropped to $46.65, the range by which the price of stock traded the whole session. The company now has a market cap of $11.9 billion and currently has 233.23 million outstanding shares. Textron Inc. (TXT) stock has accumulated 13.77 percent of market value in 21 trading days.
TXT stock’s trailing 3-year beta is 1.73, meaning there will be a greater rate of return, although posing a higher risk. The part of a firm’s profit given to each outstanding share of regular stock was $3.5 share in the trailing 52 weeks. The stock’s value surged 14.13 percent year to date (YTD) compared to a decline of -5.14 percent in 52 week’s period. The firm’s shares are still trading -12.14 percent below its 1-year high of $58.00 and 20.47 percent up from 52-week low of $42.30. The average consensus ranking on the company is 2.2, on a ranging where 5 is equal to a consensus sell rating. In other words, the mean analyst recommendations are ranking this stock as a sell.
Textron Inc. (TXT) shares are trading at a P/E ratio of 13.11 times earnings posted in the trailing 12 months. The industry TXT deals with has an average P/E of 28.66. Its P/B ratio is standing at 1.9X compared to the 3.68 industry average. It is additionally sporting a 0.75 on the Price-to-Sales ratio, compared to the industry’s P/S average of 0.43. Textron Inc. has a 41.6% gross profit margin, with its operating margin around 10.8%. Alongside this, the company’s net profit margin currently stands at 8.8%.
Past records have indicated that shares in Textron Inc. rose on 21 different earnings reaction days and we have yet to see whether this trend will play out and remain in place when the company reports upcoming earnings. Investors will get the next hint of TXT’s Q1 earnings on April 15. Analysts are predicting revenue to climb 0.8 percent to $3.13B in the financial first quarter, while EPS will soar by about -25 percent to $0.57 per share. In the last quarter, it’s earnings of $1.11 per share came better than the $1.0815, adjusted, expected by Thomson Reuters consensus estimate. Revenue for the quarter was $4.04B, topping the $3.94B analysts had expected. Earnings are seen to rise by 124.1 percent this year, 12.9 percent in the coming year and the trend continues by 5.69 percent every year in the next 5 years.