Stock Traders Purchase High Volume of Call Options on Textron (NYSE:TXT)

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Textron Inc. (NYSE:TXT) saw unusually large options trading on Thursday. Stock traders acquired 1,288 call options on the stock. This represents an increase of 1,300% compared to the average volume of 92 call options.

Several equities research analysts have recently weighed in on the company. ValuEngine cut Textron from a “hold” rating to a “sell” rating in a research note on Tuesday, October 6th. Cowen downgraded shares of Textron from an “outperform” rating to a “market perform” rating and decreased their target price for the company from $39.00 to $38.00 in a research report on Thursday, October 1st. Morgan Stanley started coverage on shares of Textron in a research report on Tuesday, September 8th. They issued an “equal weight” rating and a $45.00 price target on the stock. Alembic Global Advisors upgraded shares of Textron from a “neutral” rating to an “overweight” rating and set a $52.00 price objective for the company in a research report on Monday, August 17th. Finally, Vertical Research raised shares of Textron from a “hold” rating to a “buy” rating and set a $50.00 target price for the company in a research note on Friday, July 31st. One research analyst has rated the stock with a sell rating, six have given a hold rating and three have assigned a buy rating to the company’s stock. Textron currently has an average rating of “Hold” and a consensus target price of $40.00.

In other news, CEO Scott C. Donnelly sold 227,766 shares of Textron stock in a transaction on Wednesday, September 2nd. The shares were sold at an average price of $40.29, for a total transaction of $9,176,692.14. Following the transaction, the chief executive officer now owns 867,951 shares in the company, valued at $34,969,745.79. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, CFO Frank T. Connor sold 69,566 shares of the business’s stock in a transaction on Wednesday, September 2nd. The stock was sold at an average price of $40.29, for a total transaction of $2,802,814.14. Following the completion of the sale, the chief financial officer now directly owns 207,922 shares in the company, valued at approximately $8,377,177.38. The disclosure for this sale can be found here. Insiders own 1.40% of the company’s stock.

Institutional investors have recently made changes to their positions in the business. Commonwealth Equity Services LLC raised its position in shares of Textron by 0.8% during the third quarter. Commonwealth Equity Services LLC now owns 35,921 shares of the aerospace company’s stock worth $1,296,000 after purchasing an additional 268 shares during the period. Sawtooth Solutions LLC raised its holdings in Textron by 1.3% during the third quarter. Sawtooth Solutions LLC now owns 22,723 shares of the aerospace company’s stock worth $820,000 after buying an additional 292 shares during the last quarter. CIBC Asset Management Inc lifted its stake in shares of Textron by 1.7% in the second quarter. CIBC Asset Management Inc now owns 19,861 shares of the aerospace company’s stock valued at $654,000 after buying an additional 328 shares in the last quarter. Steward Partners Investment Advisory LLC grew its holdings in shares of Textron by 3.8% during the second quarter. Steward Partners Investment Advisory LLC now owns 9,908 shares of the aerospace company’s stock valued at $326,000 after buying an additional 366 shares during the last quarter. Finally, Rocky Mountain Advisers LLC increased its position in shares of Textron by 105.5% during the second quarter. Rocky Mountain Advisers LLC now owns 822 shares of the aerospace company’s stock worth $27,000 after acquiring an additional 422 shares in the last quarter. 84.93% of the stock is owned by hedge funds and other institutional investors.

Textron stock opened at $38.77 on Friday. The company has a market capitalization of $8.87 billion, a PE ratio of 23.64, a PEG ratio of 3.95 and a beta of 1.70. Textron has a 12-month low of $20.26 and a 12-month high of $51.53. The firm’s fifty day moving average is $36.02 and its 200 day moving average is $33.95. The company has a quick ratio of 1.15, a current ratio of 2.19 and a debt-to-equity ratio of 0.66.

Textron (NYSE:TXT) last posted its quarterly earnings results on Thursday, October 29th. The aerospace company reported $0.53 earnings per share for the quarter, beating the consensus estimate of $0.36 by $0.17. Textron had a net margin of 3.01% and a return on equity of 10.60%. The firm had revenue of $2.74 billion during the quarter, compared to the consensus estimate of $2.81 billion. The business’s revenue was down 16.1% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.95 earnings per share. Sell-side analysts expect that Textron will post 1.5 EPS for the current fiscal year.

The company also recently declared a quarterly dividend, which will be paid on Friday, January 1st. Investors of record on Friday, December 11th will be paid a dividend of $0.02 per share. This represents a $0.08 dividend on an annualized basis and a yield of 0.21%. The ex-dividend date is Thursday, December 10th. Textron’s dividend payout ratio (DPR) is currently 2.14%.

About Textron

Textron Inc operates in the aircraft, defense, industrial, and finance businesses worldwide. The company’s Textron Aviation segment manufactures, sells, and services business jets, turboprop and piston engine aircraft, and military trainer and defense aircraft; and commercial parts, as well as offers maintenance, inspection, and repair services.

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