Buyout Chatter Sends Textron Shares Higher Thursday

Shares of industrial and aerospace conglomerate Textron  (TXT)  jumped more than 3.5% on Thursday as chatter about its possible acquisition by Lockheed (LMT) 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.

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