Shares of industrial and aerospace conglomerate Textron (TXT) - Get Textron Inc. Report jumped more than 3.5% on Thursday as chatter about its possible acquisition by Lockheed (LMT) - Get Lockheed Martin Corporation (LMT) Report swept the market.
The shares closed up $1.69, or 3.60% at $48.57. The stock is at its highest level since January, and today's was its biggest gain since March.
According to data from Bloomberg, Textron shares are trading 8.7% below the Bloomberg consensus one-year target price and today's volume is triple its trading average. Bloomberg also shows much heavier than normal volume in Textron options trading Thursday.
The shares are up 1.2% for the quarter to date and have fallen 0.7% so far this year.
Textron posted lower-than-expected quarterly revenue on April 19 and said a drop in sales in its aviation and Bell helicopter unit was to blame.
It also cut its full-year earnings forecast to account for its recent acquisition of snowmobiles maker Arctic Cat acquisition. It now expects to earn $2.40-$2.60 per share, down from a previous $2.50-$2.70.
Jim Cramer and the AAP team are discussing fallout from first-quarter earnings from Apple (AAPL) - Get Apple Inc. (AAPL) Report and Facebook (FB) - Get Facebook, Inc. Class A Report and how to play the big tech names. Get hisinsights or analysis with a free trial subscription to Action Alerts Plus.
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