Eldred Rock Partners LLC Trims Holdings in Texas Instruments Incorporated $TXN

Key Points

• Eldred Rock Partners LLC reduced its holdings in Texas Instruments by 5.0% in Q2, now owning 61,135 shares valued at approximately $12.69 million, which constitutes 3.9% of its investment portfolio.
• Texas Instruments reported Q2 earnings of $1.41 per share, surpassing estimates, with revenue hitting $4.45 billion, marking a 16.4% increase year-over-year.
• The company announced a quarterly dividend of $1.36 per share, resulting in an annualized yield of 3.1%, though its dividend payout ratio stands at a high 99.63%.

Eldred Rock Partners LLC lowered its position in Texas Instruments Incorporated (NASDAQ:TXN - Free Report) by 5.0% in the 2nd quarter, according to its most recent 13F filing with the SEC. The institutional investor owned 61,135 shares of the semiconductor company's stock after selling 3,242 shares during the period. Texas Instruments accounts for about 3.9% of Eldred Rock Partners LLC's investment portfolio, making the stock its 10th largest holding. Eldred Rock Partners LLC's holdings in Texas Instruments were worth $12,693,000 at the end of the most recent reporting period.

Other institutional investors have also recently made changes to their positions in the company. Vanguard Group Inc. grew its stake in shares of Texas Instruments by 0.5% in the 1st quarter. Vanguard Group Inc. now owns 94,020,960 shares of the semiconductor company's stock worth $16,895,567,000 after buying an additional 453,683 shares during the last quarter. Charles Schwab Investment Management Inc. grew its stake in shares of Texas Instruments by 2.0% in the 1st quarter. Charles Schwab Investment Management Inc. now owns 21,915,824 shares of the semiconductor company's stock worth $3,938,274,000 after buying an additional 428,356 shares during the last quarter. Invesco Ltd. boosted its stake in Texas Instruments by 14.6% during the 1st quarter. Invesco Ltd. now owns 13,624,568 shares of the semiconductor company's stock valued at $2,448,335,000 after purchasing an additional 1,731,411 shares during the last quarter. Price T Rowe Associates Inc. MD increased its holdings in shares of Texas Instruments by 20.6% in the 1st quarter. Price T Rowe Associates Inc. MD now owns 13,197,863 shares of the semiconductor company's stock worth $2,371,657,000 after purchasing an additional 2,257,086 shares in the last quarter. Finally, Northern Trust Corp increased its holdings in shares of Texas Instruments by 0.9% in the 1st quarter. Northern Trust Corp now owns 10,493,990 shares of the semiconductor company's stock worth $1,885,770,000 after purchasing an additional 95,980 shares in the last quarter. Institutional investors own 84.99% of the company's stock.

Insider Activity

In other news, VP Ahmad Bahai sold 1,500 shares of Texas Instruments stock in a transaction dated Monday, August 25th. The stock was sold at an average price of $205.35, for a total value of $308,025.00. Following the sale, the vice president directly owned 38,883 shares of the company's stock, valued at approximately $7,984,624.05. The trade was a 3.71% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Company insiders own 0.57% of the company's stock.

Texas Instruments Price Performance

NASDAQ:TXN traded down $2.25 on Friday, reaching $179.37. 16,187,326 shares of the company's stock traded hands, compared to its average volume of 7,299,848. The company has a quick ratio of 3.88, a current ratio of 5.81 and a debt-to-equity ratio of 0.86. The stock has a 50-day simple moving average of $194.96 and a 200-day simple moving average of $185.97. The firm has a market cap of $163.07 billion, a PE ratio of 32.85, a P/E/G ratio of 2.94 and a beta of 1.02. Texas Instruments Incorporated has a 12 month low of $139.95 and a 12 month high of $221.69.

Texas Instruments (NASDAQ:TXN - Get Free Report) last posted its quarterly earnings results on Tuesday, July 22nd. The semiconductor company reported $1.41 EPS for the quarter, beating analysts' consensus estimates of $1.32 by $0.09. Texas Instruments had a return on equity of 30.10% and a net margin of 30.23%.The business had revenue of $4.45 billion for the quarter, compared to analysts' expectations of $4.31 billion. During the same period last year, the firm earned $1.17 earnings per share. The business's quarterly revenue was up 16.4% on a year-over-year basis. Texas Instruments has set its Q3 2025 guidance at 1.360-1.600 EPS. Equities research analysts forecast that Texas Instruments Incorporated will post 5.35 earnings per share for the current year.

Texas Instruments Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, November 12th. Stockholders of record on Friday, October 31st will be issued a $1.42 dividend. This represents a $5.68 annualized dividend and a dividend yield of 3.2%. This is a positive change from Texas Instruments's previous quarterly dividend of $1.36. The ex-dividend date of this dividend is Friday, October 31st. Texas Instruments's payout ratio is presently 99.63%.

Analyst Upgrades and Downgrades

TXN has been the subject of a number of research analyst reports. Sanford C. Bernstein raised Texas Instruments from a "strong sell" rating to a "hold" rating in a report on Thursday, June 5th. Benchmark restated a "buy" rating and issued a $220.00 price target on shares of Texas Instruments in a research note on Monday, September 8th. TD Cowen dropped their price target on Texas Instruments from $245.00 to $230.00 and set a "buy" rating on the stock in a research note on Wednesday, July 23rd. Stifel Nicolaus raised their price target on Texas Instruments from $160.00 to $192.00 and gave the stock a "hold" rating in a research note on Friday, July 18th. Finally, Cantor Fitzgerald restated a "neutral" rating on shares of Texas Instruments in a research note on Tuesday, July 22nd. Two investment analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating, thirteen have assigned a Hold rating and four have issued a Sell rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Hold" and an average target price of $213.82.

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.