Could Textron Inc. See a Reversal After Today’s Strong Options Activity?

 Could Textron Inc. See a Reversal After Today's Strong Options Activity?

In today’s session Textron Inc. (TXT) recorded an unusually high (1,000) contracts volume of put trades. Someone, most probably a professional was a very active buyer of the October, 2016 put, expecting serious TXT decrease. With 1,000 contracts traded and 21204 open interest for the Oct, 16 contract, it seems this is a quite bearish bet. The option with symbol: TXT161021P00036000 closed last at: $0.46 or 2.2% up. About 406,406 shares traded hands. Textron Inc. (NYSE:TXT) has risen 12.86% since March 15, 2016 and is uptrending. It has outperformed by 7.38% the S&P500.

Analysts await Textron Inc. (NYSE:TXT) to report earnings on October, 25. They expect $0.65 earnings per share, up 3.17% or $0.02 from last year’s $0.63 per share. TXT’s profit will be $175.37M for 14.71 P/E if the $0.65 EPS becomes a reality. After $0.66 actual earnings per share reported by Textron Inc. for the previous quarter, Wall Street now forecasts -1.52% negative EPS growth.

Textron Inc. (NYSE:TXT) Ratings Coverage

Out of 9 analysts covering Textron (NYSE:TXT), 7 rate it a “Buy”, 1 “Sell”, while 1 “Hold”. This means 78% are positive. Textron has been the topic of 11 analyst reports since September 2, 2015 according to StockzIntelligence Inc. Citigroup upgraded the shares of TXT in a report on Wednesday, September 2 to “Buy” rating. Morgan Stanley initiated the shares of TXT in a report on Thursday, June 23 with “Underweight” rating. JP Morgan upgraded Textron Inc. (NYSE:TXT) on Wednesday, December 16 to “Overweight” rating. The rating was maintained by RBC Capital Markets on Thursday, January 28 with “Outperform”. The stock has “Outperform” rating given by Cowen & Co on Wednesday, September 9. The stock has “Hold” rating given by Drexel Hamilton on Thursday, January 28. The company was initiated on Thursday, October 6 by Robert W. Baird.

According to Zacks Investment Research, “Textron, Inc. is a global multi-industry company with operations in five business segments – Aircraft, Fastening Systems, Industrial Components, Industrial Products and Finance. The company’s products include commercial and military helicopters, light and mid-size business jets, plastic fuel tanks, automotive trim products, golf cars and utility vehicles, turf-care equipment, industrial pumps and gears, engineered fastening systems and solutions, and other industrial products. It also is a commercial finance company for select markets.”

Insitutional Activity: The institutional sentiment increased to 0.98 in Q2 2016. Its up 0.15, from 0.83 in 2016Q1. The ratio increased, as 30 funds sold all Textron Inc. shares owned while 125 reduced positions. 44 funds bought stakes while 108 increased positions. They now own 216.35 million shares or 0.47% more from 215.34 million shares in 2016Q1.
Aqr Cap Ltd Liability Company has 0.11% invested in the company for 1.68 million shares. Ing Groep Nv has 0% invested in the company for 9,463 shares. Amp Cap holds 0.06% of its portfolio in Textron Inc. (NYSE:TXT) for 239,916 shares. Sei Invests reported 96,151 shares or 0.02% of all its holdings. Blackrock Japan Com Ltd holds 346,777 shares or 0.05% of its portfolio. Massachusetts Fin Serv Comm Ma holds 0.04% of its portfolio in Textron Inc. (NYSE:TXT) for 2.02M shares. Capwealth Advisors Limited Liability Corp accumulated 0% or 330 shares. Leuthold Limited Liability holds 0.37% of its portfolio in Textron Inc. (NYSE:TXT) for 95,630 shares. Pub Employees Retirement Association Of Colorado last reported 55,489 shares in the company. The Missouri-based Stifel Fincl has invested 0.04% in Textron Inc. (NYSE:TXT). Trust Of Vermont reported 170 shares or 0% of all its holdings. Mizuho Tru Bk Limited has 0.05% invested in the company for 436,187 shares. Finance Mngmt Pro Incorporated holds 352 shares or 0.01% of its portfolio. Verition Fund Llc holds 0.05% of its portfolio in Textron Inc. (NYSE:TXT) for 10,027 shares. Comml Bank Of America Corporation De, a North Carolina-based fund reported 1.11 million shares.

Textron Inc. is a multi-industry company engaged in aircraft, defense, industrial and finance businesses to provide clients with services and products across the world. The company has a market cap of $10.32 billion. The Firm operates through five divisions: Textron Aviation, Bell, Textron Systems, Industrial and Finance. It has a 14.4 P/E ratio. Textron Aviation makes, sells and services Beechcraft and Cessna aircraft, and services the Hawker brand of business jets.

TXT Company Profile

Textron Inc., incorporated on July 31, 1967, is a multi-industry firm engaged in aircraft, defense, industrial and finance businesses to provide clients with services and products across the world. The Firm operates through five divisions: Textron Aviation, Bell, Textron Systems, Industrial and Finance. The Company’s Textron Aviation segment is engaged in general aviation. The Company’s Industrial segment represents its manufacturing businesses. The Company’s Finance segment represents its finance business.

More recent Textron Inc. (NYSE:TXT) news were published by: Profitconfidential.com which released: “Textron Inc.: Here’s What Everyone’s Missing About Textron Stock” on October 06, 2016. Also Twst.com published the news titled: “Textron Inc.: EuroTec Japan Inc. Signs Purchase Agreement for First Bell …” on October 14, 2016. Bizjournals.com‘s news article titled: “Turf-maintenance equipment manufacturer ceasing operations in Charlotte …” with publication date: October 14, 2016 was also an interesting one.

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