Texas Instruments (NASDAQ:TXN) Shares Gap Up After Better-Than-Expected Earnings

Texas Instruments Incorporated (NASDAQ:TXNGet Free Report)’s stock price gapped up prior to trading on Wednesday after the company announced better than expected quarterly earnings. The stock had previously closed at $193.97, but opened at $201.04. Texas Instruments shares last traded at $201.61, with a volume of 2,177,758 shares.

The semiconductor company reported $1.47 EPS for the quarter, topping analysts’ consensus estimates of $1.38 by $0.09. Texas Instruments had a return on equity of 31.10% and a net margin of 33.01%. The firm had revenue of $4.15 billion during the quarter, compared to analyst estimates of $4.12 billion. During the same period last year, the company earned $1.80 earnings per share. The business’s revenue for the quarter was down 8.4% on a year-over-year basis.

Texas Instruments Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, November 12th. Investors of record on Thursday, October 31st will be paid a dividend of $1.36 per share. This is a positive change from Texas Instruments’s previous quarterly dividend of $1.30. The ex-dividend date of this dividend is Thursday, October 31st. This represents a $5.44 annualized dividend and a yield of 2.70%. Texas Instruments’s dividend payout ratio (DPR) is currently 90.28%.

Analyst Ratings Changes

TXN has been the subject of several research analyst reports. The Goldman Sachs Group lifted their price target on Texas Instruments from $157.00 to $176.00 and gave the stock a “sell” rating in a research note on Wednesday, July 24th. Mizuho set a $200.00 price target on Texas Instruments in a research note on Friday, October 18th. JPMorgan Chase & Co. lifted their price target on Texas Instruments from $195.00 to $230.00 and gave the stock an “overweight” rating in a research note on Wednesday, July 24th. Benchmark reaffirmed a “buy” rating and set a $230.00 price target on shares of Texas Instruments in a research note on Wednesday. Finally, Bank of America dropped their price target on Texas Instruments from $220.00 to $215.00 and set a “neutral” rating for the company in a research note on Wednesday. Three analysts have rated the stock with a sell rating, eleven have given a hold rating and nine have assigned a buy rating to the company. According to data from MarketBeat, the company has an average rating of “Hold” and an average target price of $206.95.

Read Our Latest Analysis on Texas Instruments

Insider Buying and Selling at Texas Instruments

In other news, CAO Julie C. Knecht sold 7,764 shares of the business’s stock in a transaction that occurred on Friday, August 23rd. The stock was sold at an average price of $209.49, for a total value of $1,626,480.36. Following the sale, the chief accounting officer now directly owns 11,806 shares of the company’s stock, valued at $2,473,238.94. The trade was a 0.00 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. In other news, CEO Haviv Ilan sold 1,200 shares of the business’s stock in a transaction that occurred on Monday, August 26th. The stock was sold at an average price of $209.44, for a total value of $251,328.00. Following the sale, the chief executive officer now directly owns 158,676 shares of the company’s stock, valued at $33,233,101.44. The trade was a 0.00 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, CAO Julie C. Knecht sold 7,764 shares of the business’s stock in a transaction that occurred on Friday, August 23rd. The stock was sold at an average price of $209.49, for a total value of $1,626,480.36. Following the completion of the sale, the chief accounting officer now directly owns 11,806 shares in the company, valued at approximately $2,473,238.94. This represents a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders have sold 15,558 shares of company stock valued at $3,255,323. 0.68% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Texas Instruments

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Norwood Financial Corp purchased a new stake in Texas Instruments during the 1st quarter valued at $32,000. Tsfg LLC raised its stake in Texas Instruments by 82.0% during the 3rd quarter. Tsfg LLC now owns 182 shares of the semiconductor company’s stock valued at $38,000 after buying an additional 82 shares during the last quarter. Tradewinds Capital Management LLC increased its stake in shares of Texas Instruments by 71.1% in the 1st quarter. Tradewinds Capital Management LLC now owns 243 shares of the semiconductor company’s stock worth $42,000 after purchasing an additional 101 shares in the last quarter. McClarren Financial Advisors Inc. purchased a new stake in shares of Texas Instruments in the 3rd quarter worth $43,000. Finally, Kathleen S. Wright Associates Inc. purchased a new stake in shares of Texas Instruments in the 1st quarter worth $44,000. 84.99% of the stock is owned by institutional investors.

Texas Instruments Price Performance

The company has a current ratio of 4.62, a quick ratio of 3.49 and a debt-to-equity ratio of 0.75. The stock has a market capitalization of $184.20 billion, a PE ratio of 35.02, a price-to-earnings-growth ratio of 4.32 and a beta of 0.98. The firm has a 50 day moving average price of $203.43 and a 200 day moving average price of $194.99.

Texas Instruments Company Profile

(Get Free Report)

Texas Instruments Incorporated designs, manufactures, and sells semiconductors to electronics designers and manufacturers in the United States and internationally. The company operates through Analog and Embedded Processing segments. The Analog segment offers power products to manage power requirements across various voltage levels, including battery-management solutions, DC/DC switching regulators, AC/DC and isolated controllers and converters, power switches, linear regulators, voltage references, and lighting products.

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