Textron Inc. (NYSE: TXT) stock fell -1.14% on Friday to $61.54 against a previous-day closing price of $62.25. With 1.33 million shares changed hands, the volume of the stock remained heavier than its average volume of 1.04 million shares. During the session, the Aerospace & Defense company that operates in wider Industrials sector, reached to the highest price of $63.91 whereas the lowest price it dropped to was $61.53. The 52-week range on TXT shows that it touched its highest point at $79.45 and its lowest point at $57.11 during that stretch. It currently has a 1-year price target of $82.79. With its current market cap of 13.27 billion, TXT has annualized dividend of $0.08 while the current yield stands at 0.13%. Beta for the stock currently stands at 1.54.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of TXT was down-trending over the past week, with a drop of -3.84%, but this was down by -4.71% over a month. Three-month performance surged to 4.32% while six-month performance fell -18.05%. The stock lost -9.17% in the past year, while it has lost -20.28% so far this year. A look at the trailing 12-month EPS for TXT yields 3.63 with Next year EPS estimates of 4.60. For the next quarter, that number is 0.94. This implies an EPS growth rate of 144.40% for this year and 16.50% for next year. EPS is expected to grow by 14.05% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 1.30%.
Float and Shares Shorts:
At present, 214.59 million TXT shares are outstanding with a float of 210.42 million shares on hand for trading. On Aug 30, 2022, short shares totaled 3.47 million, which was 1.64% higher than short shares on Jul 28, 2022. In addition to Mr. Scott C. Donnelly as the firm’s Chairman, Pres & CEO, Mr. Frank Thomas Connor serves as its Exec. VP & CFO.
Through their ownership of 88.88% of TXT’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 57.96% of TXT, in contrast to 30.03% held by mutual funds. Shares owned by individuals account for 0.81%. As the largest shareholder in TXT with 11.04% of the stake, T. Rowe Price Investment Manageme holds 23,341,763 shares worth 23,341,763. A second-largest stockholder of TXT, The Vanguard Group, Inc., holds 22,789,312 shares, controlling over 10.77% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in TXT, holding 13,087,730 shares or 6.19% stake. With a 5.48% stake in TXT, the T Rowe Price Mid Cap Growth Fund is the largest stakeholder. A total of 11,585,800 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 3.01% of TXT stock, is the second-largest Mutual Fund holder. It holds 6,364,545 shares valued at 397.02 million. Vanguard Mid Cap Index Fund holds 2.34% of the stake in TXT, owning 4,938,496 shares worth 308.06 million.
An Overview of Recent Financials:
Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jul 01, 2022, TXT reported revenue of $3.15B and operating income of $235.00M. It generated $217.00M net income for the quarter, which came to $802.00M over the last twelve months. The EBITDA in the recently reported quarter was $393.00M and diluted EPS was $1.00. EBITDA for the full year was $1.50B.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for TXT since 15 analysts follow the stock currently. There are 8 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 5 believe that the stock is worth HOLDING, 2 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With TXT analysts setting a high price target of $90.00 and a low target of $70.00, the average target price over the next 12 months is $82.57. Based on these targets, TXT could surge 46.25% to reach the target high and rise by 13.75% to reach the target low. Reaching the average price target will result in a growth of 34.17% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. TXT will report FY 2022 earnings on 01/26/2023. Analysts have provided yearly estimates in a range of $4.10 being high and $3.70 being low. For TXT, this leads to a yearly average estimate of $3.95. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Textron Inc. surprised analysts by $0.12 when it reported $1.00 EPS against a consensus estimate of $0.88. The surprise factor in the prior quarter was $0.15. Based on analyst estimates, the high estimate for the next quarter is $1.00 and the low estimate is $0.87. The average estimate for the next quarter is thus $0.94.
Summary of Insider Activity:
Insiders traded TXT stock several times over the past three months with 0 Buys and 0 Sells. In these transactions, 0 shares were bought while 0 shares were sold. The number of buy transactions has increased to 24 while that of sell transactions has risen to 15 over the past year. The total number of shares bought during that period was 428,807 while 386,737 shares were sold.