Texas Instruments (NASDAQ:TXN) Shares Gap Down Following Analyst Downgrade

Texas Instruments Incorporated (NASDAQ:TXN)’s share price gapped down before the market opened on Monday after Mizuho downgraded the stock from a neutral rating to an underperform rating. The stock had previously closed at $176.58, but opened at $172.51. Mizuho now has a $150.00 price target on the stock, down from their previous price target of $200.00. Texas Instruments shares last traded at $179.02, with a volume of 1,015,466 shares changing hands.

Several other brokerages have also recently issued reports on TXN. BNP Paribas upgraded Texas Instruments to a “strong sell” rating in a research note on Wednesday, July 23rd. TD Cowen decreased their price objective on Texas Instruments from $245.00 to $230.00 and set a “buy” rating for the company in a research note on Wednesday, July 23rd. Wells Fargo & Company decreased their price objective on Texas Instruments from $215.00 to $195.00 and set an “equal weight” rating for the company in a research note on Wednesday, July 23rd. UBS Group set a $255.00 price objective on Texas Instruments in a research note on Tuesday, July 22nd. Finally, Arete Research upgraded Texas Instruments to a “hold” rating in a research note on Thursday, June 26th. Two research analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating, twelve have assigned a Hold rating and six have given a Sell rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of “Hold” and an average price target of $209.47.

Insiders Place Their Bets

In related news, VP Ahmad Bahai sold 1,500 shares of the business’s stock in a transaction that occurred on Monday, August 25th. The stock was sold at an average price of $205.35, for a total transaction of $308,025.00. Following the completion of the sale, the vice president owned 38,883 shares in the company, valued at $7,984,624.05. The trade was a 3.71% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. 0.57% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Texas Instruments

Institutional investors have recently added to or reduced their stakes in the business. Woodmont Investment Counsel LLC increased its holdings in shares of Texas Instruments by 2.9% during the 2nd quarter. Woodmont Investment Counsel LLC now owns 1,650 shares of the semiconductor company’s stock worth $343,000 after acquiring an additional 47 shares during the last quarter. Confluence Wealth Services Inc. increased its holdings in shares of Texas Instruments by 0.4% during the 2nd quarter. Confluence Wealth Services Inc. now owns 10,996 shares of the semiconductor company’s stock worth $2,283,000 after acquiring an additional 48 shares during the last quarter. Acropolis Investment Management LLC increased its holdings in shares of Texas Instruments by 2.9% during the 2nd quarter. Acropolis Investment Management LLC now owns 1,875 shares of the semiconductor company’s stock worth $389,000 after acquiring an additional 52 shares during the last quarter. Proathlete Wealth Management LLC increased its holdings in shares of Texas Instruments by 1.4% during the 2nd quarter. Proathlete Wealth Management LLC now owns 3,747 shares of the semiconductor company’s stock worth $782,000 after acquiring an additional 53 shares during the last quarter. Finally, Trivium Point Advisory LLC increased its holdings in shares of Texas Instruments by 4.5% during the 1st quarter. Trivium Point Advisory LLC now owns 1,256 shares of the semiconductor company’s stock worth $226,000 after acquiring an additional 54 shares during the last quarter. Hedge funds and other institutional investors own 84.99% of the company’s stock.

Texas Instruments Price Performance

The company has a debt-to-equity ratio of 0.86, a quick ratio of 3.88 and a current ratio of 5.81. The firm has a market capitalization of $163.27 billion, a price-to-earnings ratio of 32.89, a price-to-earnings-growth ratio of 2.99 and a beta of 1.01. The business has a fifty day moving average of $187.17 and a two-hundred day moving average of $185.96.

Texas Instruments (NASDAQ:TXN) last issued its quarterly earnings data on Tuesday, July 22nd. The semiconductor company reported $1.41 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.32 by $0.09. The firm had revenue of $4.45 billion during the quarter, compared to the consensus estimate of $4.31 billion. Texas Instruments had a net margin of 30.23% and a return on equity of 30.10%. The business’s revenue for the quarter was up 16.4% compared to the same quarter last year. During the same period last year, the business posted $1.17 earnings per share. As a group, research analysts predict that Texas Instruments Incorporated will post 5.35 EPS for the current fiscal year.

Texas Instruments Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, November 12th. Shareholders of record on Friday, October 31st will be given a dividend of $1.42 per share. This represents a $5.68 annualized dividend and a yield of 3.2%. This is a boost from Texas Instruments’s previous quarterly dividend of $1.36. The ex-dividend date is Friday, October 31st. Texas Instruments’s dividend payout ratio (DPR) is 99.63%.

About Texas Instruments

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.