Key Points
- Director Janet Clark sold 4,306 Texas Instruments shares for approximately $1.30 million at an average price of $302.46, reducing her direct ownership by 27.52% to 11,341 shares.
- Texas Instruments exceeded quarterly expectations, reporting EPS of $2.62 and revenue of $6.05 billion, with revenue up 27.7% year over year. The company also raised its quarterly dividend to $1.52 per share.
- Analyst sentiment remains mixed but leans moderately bullish, with a consensus price target of $315.37; however, elevated valuation, continued manufacturing investment and insider selling present potential risks.
Texas Instruments Incorporated (NASDAQ:TXN - Get Free Report) Director Janet Clark sold 4,306 shares of the firm's stock in a transaction that occurred on Tuesday, October 27th. The stock was sold at an average price of $302.46, for a total transaction of $1,302,392.76. Following the transaction, the director directly owned 11,341 shares in the company, valued at $3,430,198.86. This represents a 27.52% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website.
Texas Instruments Trading Up 1.0%
Shares of TXN stock opened at $312.94 on Friday. The company has a current ratio of 5.59, a quick ratio of 4.05 and a debt-to-equity ratio of 0.67. The stock has a market cap of $285.96 billion, a P/E ratio of 40.59, a price-to-earnings-growth ratio of 1.54 and a beta of 1.35. The stock has a 50 day simple moving average of $274.96 and a 200 day simple moving average of $258.21. Texas Instruments Incorporated has a 1 year low of $152.73 and a 1 year high of $334.03.
Texas Instruments (NASDAQ:TXN - Get Free Report) last issued its quarterly earnings results on Wednesday, October 21st. The semiconductor company reported $2.62 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.40 by $0.22. Texas Instruments had a return on equity of 40.51% and a net margin of 34.25%. The business had revenue of $6.05 billion for the quarter, compared to the consensus estimate of $5.94 billion. During the same quarter in the prior year, the business posted $1.48 earnings per share. The firm's quarterly revenue was up 27.7% compared to the same quarter last year. On average, research analysts predict that Texas Instruments Incorporated will post 8.89 earnings per share for the current fiscal year.
Texas Instruments Increases Dividend
The business also recently announced a quarterly dividend, which will be paid on Tuesday, November 10th. Stockholders of record on Friday, October 30th will be given a dividend of $1.52 per share. This represents a $6.08 dividend on an annualized basis and a dividend yield of 1.9%. The ex-dividend date is Friday, October 30th. This is a positive change from Texas Instruments's previous quarterly dividend of $1.42. Texas Instruments's dividend payout ratio is currently 78.86%.
Institutional Investors Weigh In On Texas Instruments
Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Kilter Group LLC acquired a new position in shares of Texas Instruments during the 2nd quarter worth $31,000. Creative Capital Management Investments LLC lifted its position in shares of Texas Instruments by 167.5% during the 3rd quarter. Creative Capital Management Investments LLC now owns 107 shares of the semiconductor company's stock worth $30,000 after buying an additional 67 shares during the last quarter. Nvwm LLC lifted its position in shares of Texas Instruments by 550.0% during the 3rd quarter. Nvwm LLC now owns 117 shares of the semiconductor company's stock worth $33,000 after buying an additional 99 shares during the last quarter. Addison Advisors LLC acquired a new stake in Texas Instruments in the second quarter valued at about $38,000. Finally, Reyes Financial Architecture Inc. acquired a new stake in Texas Instruments in the third quarter valued at about $36,000. 84.99% of the stock is currently owned by institutional investors.
Texas Instruments News Summary
Here are the key news stories impacting Texas Instruments this week:
- Positive Sentiment: Strong earnings and revenue growth support the stock. Texas Instruments reported third-quarter revenue of approximately $6.06 billion, up 27.7% year over year, and earnings per share of $2.62, exceeding the $2.40 consensus estimate. Management forecast fourth-quarter revenue of $5.80 billion to $6.30 billion and EPS of $2.45 to $2.79, suggesting continued demand across industrial, automotive and data-center markets. Earnings Beat Might Change Texas Instruments Stock Narrative
- Positive Sentiment: Profitability improved materially. Third-quarter gross margin rose to 64.2%, compared with 57.4% a year earlier and 61.4% in the prior quarter, as higher sales and factory utilization boosted operating leverage. TXN's Gross Margin Crosses 64% in Q3
- Positive Sentiment: Institutional demand is a supportive signal. ETFs reportedly purchased about $37 million of TXN shares on Monday, while 41 ETFs added the stock on October 27, potentially providing incremental buying pressure. ETFs Bought $37.0 Million of Texas Instruments
- Neutral Sentiment: Analyst sentiment is broadly constructive but not decisive. Brokerage ratings point toward buying TXN, although such recommendations can be overly optimistic. DZ Bank upgraded the shares from “sell” to “hold,” but set a $300 price target, below the recent trading level. DZ Bank Texas Instruments Rating
- Negative Sentiment: Valuation and cash-flow expectations remain concerns. With TXN trading at a high earnings multiple, investors are questioning whether future free cash flow can justify the stock’s price, particularly as the company continues investing heavily in manufacturing capacity. Can Texas Instruments Justify Its Price On Future Cash Flow?
- Negative Sentiment: Director selling adds a modest cautionary signal. Three directors sold a combined 14,903 shares at prices near $302, reducing their individual holdings by roughly 12% to 28%. The transactions may reflect personal portfolio decisions, but could weigh on sentiment near the stock’s highs.
- Negative Sentiment: Sector risks remain. Weak guidance from NXP Semiconductor renewed concerns about automotive-chip demand and pressured portions of the semiconductor group, including Texas Instruments. Soft Guidance Revives Auto Chip Worries
Wall Street Analyst Weigh In
A number of brokerages recently commented on TXN. The Goldman Sachs Group restated a "sell" rating and issued a $250.00 price target on shares of Texas Instruments in a research report on Thursday, October 22nd. Mizuho cut their price objective on shares of Texas Instruments from $305.00 to $290.00 and set a "neutral" rating for the company in a research report on Thursday, October 22nd. Morgan Stanley upped their price objective on shares of Texas Instruments from $255.00 to $278.00 and gave the stock an "underweight" rating in a research report on Thursday, October 22nd. Benchmark increased their price objective on shares of Texas Instruments from $315.00 to $360.00 and gave the stock a "buy" rating in a research note on Thursday, July 23rd. Finally, KeyCorp raised their target price on shares of Texas Instruments from $390.00 to $400.00 and gave the company an "overweight" rating in a report on Thursday, July 23rd. One analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating, twelve have assigned a Hold rating and two have issued a Sell rating to the company. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $315.37.
Get Our Latest Stock Report on Texas Instruments
Texas Instruments Company Profile
(
Get Free Report)
Texas Instruments Incorporated (NASDAQ:TXN) designs and manufactures analog and embedded semiconductor products used in industrial, automotive, personal electronics, communications equipment, and enterprise systems. Its analog products help manage power, sense and measure real-world signals, and support signal processing, while its embedded processing products provide computing and control functions within electronic systems.
The company offers a broad portfolio of semiconductors, including power-management devices, amplifiers, data converters, microcontrollers, processors, and connectivity products.
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