Textron Inc. Options Trading Analysis
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Should l Buy TXT?
Source: NASDAQ.COM
- Options Selling Risk: Selling puts on Textron Inc does not provide the same upside potential as owning shares, as the seller only acquires shares if the contract is exercised, meaning the only benefit is a 4.5% annualized return unless the stock falls to $87.50.
- Dividend Yield Comparison: With Textron Inc's current annualized dividend at 0.1%, significantly lower than the 4.5% annualized return from selling puts, this highlights the advantage of the options strategy, though owning shares carries a greater risk of a 11.64% downside.
- Volatility Analysis: The trailing twelve-month volatility for Textron Inc is calculated at 29%, and when combined with historical trading data and fundamental analysis, it can assist investors in assessing whether selling puts at the $87.50 strike price offers a favorable risk-reward ratio.
- Market Sentiment Indicator: As of Friday afternoon, the put volume among S&P 500 components reached 1.33 million contracts, matching call volume, indicating a higher demand for puts than the long-term median, reflecting investor concerns about potential market declines.
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Analyst Views on TXT
Wall Street analysts forecast TXT stock price to fall
7 Analyst Rating
0 Buy
7 Hold
0 Sell
Hold
Current: 98.750
Low
86.00
Averages
89.71
High
94.00
Current: 98.750
Low
86.00
Averages
89.71
High
94.00
About TXT
Textron Inc. is a multi-industry company that leverages its global network of aircraft, defense, industrial and finance businesses to provide customers with various solutions and services. The Company's segments include Textron Aviation, Bell, Textron Systems, Industrial, Textron eAviation, and Finance. Textron Aviation segment manufactures, sells and services Cessna and Beechcraft aircraft, and services the Hawker brand of business jets. Bell segment supplies military and commercial helicopters, tiltrotor aircraft, and related spare parts and services in the world. Textron Systems segment offers electronic systems and solutions, advanced marine craft, piston aircraft engines, and others. Industrial segment designs and manufactures a variety of products within the Kautex and Specialized Vehicles product lines. Textron eAviation segment includes Pipistrel, a manufacturer of light aircraft, along with other research and development initiatives related to sustainable aviation solutions.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Textron Inc. Options Trading Analysis
- Options Selling Risk: Selling puts on Textron Inc does not provide the same upside potential as owning shares, as the seller only acquires shares if the contract is exercised, meaning the only benefit is a 4.5% annualized return unless the stock falls to $87.50.
- Dividend Yield Comparison: With Textron Inc's current annualized dividend at 0.1%, significantly lower than the 4.5% annualized return from selling puts, this highlights the advantage of the options strategy, though owning shares carries a greater risk of a 11.64% downside.
- Volatility Analysis: The trailing twelve-month volatility for Textron Inc is calculated at 29%, and when combined with historical trading data and fundamental analysis, it can assist investors in assessing whether selling puts at the $87.50 strike price offers a favorable risk-reward ratio.
- Market Sentiment Indicator: As of Friday afternoon, the put volume among S&P 500 components reached 1.33 million contracts, matching call volume, indicating a higher demand for puts than the long-term median, reflecting investor concerns about potential market declines.
See More
Textron (TXT.US) Director Plans to Sell $21.82 Million in Common Stock, According to Form 144
- Stock Sale Announcement: Director Donnelly Scott plans to sell 219.62K shares of its common stock on February 13.
- Market Value: The total market value of the shares to be sold is approximately $21.82 million.
See More
Textron Shares Surpass Analyst Target Price of $97.86
- Stock Performance: Textron Inc (Ticker: TXT) recently traded above the average analyst 12-month target price of $97.86, currently priced at $98.75, indicating optimistic market sentiment regarding the company's prospects.
- Analyst Reaction: When a stock reaches an analyst's target price, they typically either downgrade on valuation or raise the target price, reflecting confidence in Textron's future developments.
- Target Price Distribution: Among the 14 analysts covered by Zacks, target prices range from $86.00 to $115.00, with a standard deviation of $8.865, showcasing varying market perspectives on Textron's future performance.
- Investor Signal: The stock's rise above the target price provides a strong signal for investors to reassess the company, prompting them to consider whether the current valuation is justified or if it's time to take profits.
See More
Kautex Achieves A Score in Climate Change Assessment
- Climate Leadership: Kautex achieved an A score in the 2025 CDP assessment for Climate Change, marking significant progress in environmental transparency and management practices, thereby enhancing its leadership position in global climate stewardship.
- Water Security Improvement: The company's water security score improved from a C to a B, reflecting efforts in identifying water-related risks and implementing sustainable water management, demonstrating its commitment to responsible resource management.
- Sustainability Strategy: Over the past year, Kautex has strengthened renewable energy usage and enhanced water management programs in high-risk areas, indicating a commitment to transparency and resilience in a rapidly changing environment.
- Long-term Value Creation: CEO Jörg Rautenstrauch emphasized that the achievements in climate leadership and water security scores indicate sustainability is a core part of operations and innovation, with a focus on creating long-term value for customers and the planet.
See More
Kautex Achieves High Scores in CDP Assessment
- Climate Leadership Achieved: Kautex earned an A score for Climate Change in the 2025 CDP assessment, indicating the company's best practices in climate action and emissions reduction, marking its leadership position in global climate management.
- Significant Water Security Improvement: The company's water security score improved from a C to a B, reflecting effective measures taken to identify water-related risks and implement sustainable water management, showcasing its commitment to resource management.
- Sustainability Embedded in Operations: Over the past year, Kautex expanded renewable energy use across global facilities and strengthened water management programs in high-risk regions, demonstrating its commitment to transparency and resilience in a rapidly changing environment.
- Strategic Future Development: CEO Jörg Rautenstrauch emphasized that advancing sustainability is not just a goal but a core part of how Kautex operates and innovates, aiming to create long-term value for customers, employees, and the planet.
See More
Textron Reports Q4 Earnings Beat but Stock Drops on Guidance
- Earnings Beat: Textron reported an adjusted earnings per share of $1.73 for Q4, surpassing Wall Street's expectation of $1.70, with sales reaching $4.2 billion, exceeding analyst forecasts of $4.1 billion; however, the stock dropped nearly 8% on earnings day.
- Strong Sales Growth: The company experienced a 16% year-over-year sales increase in Q4, with adjusted earnings climbing 29%, while GAAP earnings of $1.33 represented a 75% improvement from last year's Q4, highlighting robust performance in its aviation and helicopter divisions.
- Significant Cash Flow Increase: Textron's free cash flow soared by 46.6% to $944 million for the year, indicating substantial progress in cash management and operational efficiency, which enhances its capacity for future investments.
- Disappointing Guidance: Despite analysts forecasting earnings of $6.84 per share for 2026, Textron cautioned that adjusted earnings may only reach $6.60 per share, with GAAP profit around $5.49, suggesting a slowdown in growth that could undermine investor confidence.
See More
Textron Inc. Options Trading Analysis
- Options Selling Risk: Selling puts on Textron Inc does not provide the same upside potential as owning shares, as the seller only acquires shares if the contract is exercised, meaning the only benefit is a 4.5% annualized return unless the stock falls to $87.50.
- Dividend Yield Comparison: With Textron Inc's current annualized dividend at 0.1%, significantly lower than the 4.5% annualized return from selling puts, this highlights the advantage of the options strategy, though owning shares carries a greater risk of a 11.64% downside.
- Volatility Analysis: The trailing twelve-month volatility for Textron Inc is calculated at 29%, and when combined with historical trading data and fundamental analysis, it can assist investors in assessing whether selling puts at the $87.50 strike price offers a favorable risk-reward ratio.
- Market Sentiment Indicator: As of Friday afternoon, the put volume among S&P 500 components reached 1.33 million contracts, matching call volume, indicating a higher demand for puts than the long-term median, reflecting investor concerns about potential market declines.
See More
Textron (TXT.US) Director Plans to Sell $21.82 Million in Common Stock, According to Form 144
- Stock Sale Announcement: Director Donnelly Scott plans to sell 219.62K shares of its common stock on February 13.
- Market Value: The total market value of the shares to be sold is approximately $21.82 million.
See More
Textron Shares Surpass Analyst Target Price of $97.86
- Stock Performance: Textron Inc (Ticker: TXT) recently traded above the average analyst 12-month target price of $97.86, currently priced at $98.75, indicating optimistic market sentiment regarding the company's prospects.
- Analyst Reaction: When a stock reaches an analyst's target price, they typically either downgrade on valuation or raise the target price, reflecting confidence in Textron's future developments.
- Target Price Distribution: Among the 14 analysts covered by Zacks, target prices range from $86.00 to $115.00, with a standard deviation of $8.865, showcasing varying market perspectives on Textron's future performance.
- Investor Signal: The stock's rise above the target price provides a strong signal for investors to reassess the company, prompting them to consider whether the current valuation is justified or if it's time to take profits.
See More
Kautex Achieves A Score in Climate Change Assessment
- Climate Leadership: Kautex achieved an A score in the 2025 CDP assessment for Climate Change, marking significant progress in environmental transparency and management practices, thereby enhancing its leadership position in global climate stewardship.
- Water Security Improvement: The company's water security score improved from a C to a B, reflecting efforts in identifying water-related risks and implementing sustainable water management, demonstrating its commitment to responsible resource management.
- Sustainability Strategy: Over the past year, Kautex has strengthened renewable energy usage and enhanced water management programs in high-risk areas, indicating a commitment to transparency and resilience in a rapidly changing environment.
- Long-term Value Creation: CEO Jörg Rautenstrauch emphasized that the achievements in climate leadership and water security scores indicate sustainability is a core part of operations and innovation, with a focus on creating long-term value for customers and the planet.
See More
Kautex Achieves High Scores in CDP Assessment
- Climate Leadership Achieved: Kautex earned an A score for Climate Change in the 2025 CDP assessment, indicating the company's best practices in climate action and emissions reduction, marking its leadership position in global climate management.
- Significant Water Security Improvement: The company's water security score improved from a C to a B, reflecting effective measures taken to identify water-related risks and implement sustainable water management, showcasing its commitment to resource management.
- Sustainability Embedded in Operations: Over the past year, Kautex expanded renewable energy use across global facilities and strengthened water management programs in high-risk regions, demonstrating its commitment to transparency and resilience in a rapidly changing environment.
- Strategic Future Development: CEO Jörg Rautenstrauch emphasized that advancing sustainability is not just a goal but a core part of how Kautex operates and innovates, aiming to create long-term value for customers, employees, and the planet.
See More
Textron Reports Q4 Earnings Beat but Stock Drops on Guidance
- Earnings Beat: Textron reported an adjusted earnings per share of $1.73 for Q4, surpassing Wall Street's expectation of $1.70, with sales reaching $4.2 billion, exceeding analyst forecasts of $4.1 billion; however, the stock dropped nearly 8% on earnings day.
- Strong Sales Growth: The company experienced a 16% year-over-year sales increase in Q4, with adjusted earnings climbing 29%, while GAAP earnings of $1.33 represented a 75% improvement from last year's Q4, highlighting robust performance in its aviation and helicopter divisions.
- Significant Cash Flow Increase: Textron's free cash flow soared by 46.6% to $944 million for the year, indicating substantial progress in cash management and operational efficiency, which enhances its capacity for future investments.
- Disappointing Guidance: Despite analysts forecasting earnings of $6.84 per share for 2026, Textron cautioned that adjusted earnings may only reach $6.60 per share, with GAAP profit around $5.49, suggesting a slowdown in growth that could undermine investor confidence.
See More
