Stock on Demand This Week: Textron Inc. (TXT)


Textron Inc. (NYSE:TXT) saw an upside of 1.11% to $70.38 after adding $0.78 on Wednesday. The 5-day average trading volume is 1,421,616 shares of the company’s common stock. It has gained $71.42 in the past week and touched a new high 4 times within the past 5 days. An average of 1,216,349 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 1,342,930.

TXT’s 1-month performance is -2.10% or -$0.42 on its low of $66.37 reached on 01/19/23. The company’s shares have touched a 52-week low of $57.11 and high of $76.11, with the stock’s rally to the 52-week high happening on 01/09/23. YTD, TXT has lost -1.69% or -$0.81 and has reached a new high 4 times. However, the current price is down -7.54% from the 52-week high price.

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Insider Transactions

TXT stock investors last saw insider trading activity on Mar 02.Lupone E Robert (EVP, General Counsel and Secy) most recently sold 29,752 shares at $72.63 per share on Mar 02. This transaction cost the insider $2,160,828. VP and Corporate Controller, Bamford Mark S, sold 2,701 shares at a price of $72.90 on Mar 02. Then, on Mar 01, VP and Corporate Controller Bamford Mark S sold 1,150 shares at a price of $71.00 per share. This transaction amounted to $81,650.

Valuation Metrics

TXT stock has a beta of 1.48. Moving on to other valuation ratios, the trailing price-to-sales (P/S) ratio is 1.13 while the price-to-book (PB) in the most recent quarter is 2.17, with the price to cash flow ratio at 14.14.

Textron Inc.’s quick ratio for the period ended September 29 was 1.00, with the current ratio over the same period at 2.10. As well, the company’s long term debt to equity for the quarter ending September 29 was 0.53, while the total debt to equity was 0.53. In terms of profitability, the gross margin trailing 12 months is 16.60%. The firm’s gross profit as reported stood at $2.08 billion against revenue of $12.38 billion.

Earnings Surprise

For the quarterly period ending September 29 this year, Net income and sales went down compared to those figures reported in the previous quarter. Net income grew 17.78% to $225.0 million, while revenue of $217.0 million was 3.56% off the previous quarter. Analysts expected TXT to announce $0.86 per share in earnings in its latest quarter, but it posted $0.99, representing a 15.10% surprise. EBITDA for the quarter stood at more than $333.0 million. TXT stock balance sheet for the quarter ending September 29 shows that total liabilities totaled 9.19 billion, with total debt at $3.93 billion. Shareholders hold equity totaling $208.77 million.

Let’s look briefly at Textron Inc. (TXT) price momentum from a technical analysis perspective. The 9-day relative strength index as at close on 24 January was 52.34% to suggest the stock is trending Neutral, with historical volatility in this time period at 25.96%.

The stock’s 5-day moving average is $68.57, reflecting a +2.43% or $1.66 change from its current price. TXT is currently trading -0.60% above its 20-day SMA, +12.20% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 by -2.14% and SMA200 by+0.13%.

Stochastic %K and %D was 52.82% and 38.94% and the average true range (ATR) pointed at 1.85. The RSI (14) points at 50.67%, while the 14-day stochastic is at 60.64% with the period’s ATR at 1.76. The stock’s 9-day MACD Oscillator is pointing at 0.39 and -0.21 on the 14-day charts.

Analyst Ratings

In the most recent analyst report for Textron Inc. (NYSE: TXT), Bernstein launched coverage with a Mkt perform rating. Analysts offering their rating for TXT stock have a consensus rating for the stock as Overweight. Currently, 0 brokerage advisors rate TXT as a “sell,”, while 5 advise that investors “Hold.” 0 analysts have rated the stock as underweight. 2 rates the stock as overweight while 7 have offered a “buy” rating.

What is TXT’s price target for the next 12 months?

Analysts have a consensus price target ranging from a low of $70.90 and a high of $93.00, with their median price target at $84.00. Looking at these predictions, the average price target given by analysts is for Textron Inc. (TXT) stock is $81.61.


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