3,884 Texas Instruments Incorporated $TXN Shares Acquired by China Universal Asset Management Co. Ltd.

Key Points

• China Universal Asset Management increased its Texas Instruments stake by 12%, acquiring 3,884 shares to own 36,345 shares valued at approximately $10.24 million. Institutional investors and hedge funds collectively own 84.99% of TXN.
• Texas Instruments reported strong quarterly results, with EPS of $2.62 and revenue of $6.05 billion, beating estimates and raising revenue 27.7% year over year. The company also increased its quarterly dividend to $1.52 per share, implying a 1.9% annual yield.
• Analysts maintain a consensus “Moderate Buy” rating with a $315.37 price target, although TXN’s elevated valuation and recent insider selling present potential risks. Shares opened at $312.94, near the consensus target.

China Universal Asset Management Co. Ltd. boosted its stake in shares of Texas Instruments Incorporated (NASDAQ:TXN - Free Report) by 12.0% during the third quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 36,345 shares of the semiconductor company's stock after acquiring an additional 3,884 shares during the period. China Universal Asset Management Co. Ltd.'s holdings in Texas Instruments were worth $10,238,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors have also recently added to or reduced their stakes in TXN. TOWER TRUST & INVESTMENT Co grew its stake in Texas Instruments by 5,000.0% during the third quarter. TOWER TRUST & INVESTMENT Co now owns 153 shares of the semiconductor company's stock worth $43,000 after buying an additional 150 shares in the last quarter. Childress Capital Advisors LLC increased its holdings in Texas Instruments by 14.7% in the 3rd quarter. Childress Capital Advisors LLC now owns 4,568 shares of the semiconductor company's stock valued at $1,279,000 after buying an additional 586 shares during the period. D.A. Davidson & CO. increased its holdings in Texas Instruments by 0.5% in the 3rd quarter. D.A. Davidson & CO. now owns 22,224 shares of the semiconductor company's stock valued at $6,225,000 after buying an additional 103 shares during the period. North Dakota State Investment Board raised its position in shares of Texas Instruments by 3.1% in the 3rd quarter. North Dakota State Investment Board now owns 27,852 shares of the semiconductor company's stock valued at $7,801,000 after buying an additional 827 shares in the last quarter. Finally, Vaquero Private Wealth Ltd. raised its position in shares of Texas Instruments by 0.8% in the 3rd quarter. Vaquero Private Wealth Ltd. now owns 17,333 shares of the semiconductor company's stock valued at $4,855,000 after buying an additional 146 shares in the last quarter. 84.99% of the stock is owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

TXN has been the subject of a number of recent analyst reports. Barclays upped their price target on shares of Texas Instruments from $250.00 to $280.00 and gave the stock an "equal weight" rating in a report on Thursday, October 22nd. DZ Bank raised shares of Texas Instruments from a "sell" rating to a "hold" rating and set a $300.00 price objective on the stock in a research note on Wednesday. Weiss Ratings downgraded shares of Texas Instruments from a "buy (b)" rating to a "buy (b-)" rating in a research report on Friday, October 23rd. Benchmark upped their target price on Texas Instruments from $315.00 to $360.00 and gave the stock a "buy" rating in a research note on Thursday, July 23rd. Finally, Citigroup reaffirmed a "buy" rating on shares of Texas Instruments in a report on Thursday, October 22nd. One analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating, twelve have issued a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $315.37.

Texas Instruments Stock Up 1.0%

Shares of NASDAQ TXN opened at $312.94 on Friday. The company has a market cap of $285.96 billion, a price-to-earnings ratio of 40.59, a PEG ratio of 1.54 and a beta of 1.35. The company has a current ratio of 5.59, a quick ratio of 4.05 and a debt-to-equity ratio of 0.67. Texas Instruments Incorporated has a 12 month low of $152.73 and a 12 month high of $334.03. The stock has a 50-day moving average price of $274.96 and a two-hundred day moving average price of $258.21.

Texas Instruments (NASDAQ:TXN - Get Free Report) last posted its quarterly earnings results on Wednesday, October 21st. The semiconductor company reported $2.62 earnings per share for the quarter, beating analysts' consensus estimates of $2.40 by $0.22. Texas Instruments had a net margin of 34.25% and a return on equity of 40.51%. The company had revenue of $6.05 billion for the quarter, compared to the consensus estimate of $5.94 billion. During the same period last year, the company posted $1.48 EPS. The firm's quarterly revenue was up 27.7% compared to the same quarter last year. As a group, analysts forecast 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. Shareholders of record on Friday, October 30th will be paid a dividend of $1.52 per share. The ex-dividend date of this dividend is Friday, October 30th. This is a boost from Texas Instruments's previous quarterly dividend of $1.42. This represents a $6.08 dividend on an annualized basis and a dividend yield of 1.9%. Texas Instruments's payout ratio is presently 78.86%.

Key Stories Impacting Texas Instruments

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

Insider Activity at Texas Instruments

In related news, Director Pamela H. Patsley sold 4,532 shares of the firm's stock in a transaction on Tuesday, October 27th. The stock was sold at an average price of $301.56, for a total transaction of $1,366,669.92. Following the sale, the director owned 34,487 shares of the company's stock, valued at $10,399,899.72. This trade represents a 11.61% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, Director Janet F. Clark sold 4,306 shares of the business's stock in a transaction on Tuesday, October 27th. The stock was sold at an average price of $302.46, for a total value of $1,302,392.76. Following the sale, the director owned 11,341 shares in the company, valued at $3,430,198.86. This represents a 27.52% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 21,903 shares of company stock valued at $6,354,376 over the last three months. 0.60% of the stock is currently owned by corporate insiders.

Texas Instruments Profile

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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