Primecap Management Co. CA Has $2.51 Billion Stock Holdings in Texas Instruments Incorporated (NASDAQ:TXN)

Key Points

• Primecap Management Co. CA has reduced its stake in Texas Instruments (NASDAQ:TXN) by 2.6%, holding approximately 13,991,539 shares valued at about $2.51 billion, making it the 11th largest position in their portfolio.
• Texas Instruments reported better-than-expected quarterly earnings with an EPS of $1.41, surpassing analysts' estimates, and their revenue increased by 16.4% year-over-year.
• The company declared a quarterly dividend of $1.36, resulting in an annualized yield of 2.9%, with the ex-dividend date set for July 31.

Primecap Management Co. CA decreased its holdings in shares of Texas Instruments Incorporated (NASDAQ:TXN - Free Report) by 2.6% during the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 13,991,539 shares of the semiconductor company's stock after selling 378,980 shares during the quarter. Texas Instruments accounts for approximately 2.1% of Primecap Management Co. CA's holdings, making the stock its 11th biggest position. Primecap Management Co. CA owned approximately 1.54% of Texas Instruments worth $2,514,280,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds have also modified their holdings of the business. Strategy Asset Managers LLC grew its holdings in shares of Texas Instruments by 0.8% during the first quarter. Strategy Asset Managers LLC now owns 32,961 shares of the semiconductor company's stock valued at $5,923,000 after buying an additional 253 shares in the last quarter. Hemington Wealth Management grew its holdings in shares of Texas Instruments by 6.8% during the first quarter. Hemington Wealth Management now owns 1,345 shares of the semiconductor company's stock valued at $241,000 after buying an additional 86 shares in the last quarter. Vanguard Group Inc. grew its holdings in shares of Texas Instruments by 0.5% during the first quarter. Vanguard Group Inc. now owns 94,020,960 shares of the semiconductor company's stock valued at $16,895,567,000 after buying an additional 453,683 shares in the last quarter. Goldman Sachs Group Inc. grew its stake in Texas Instruments by 9.2% in the first quarter. Goldman Sachs Group Inc. now owns 8,831,420 shares of the semiconductor company's stock valued at $1,587,006,000 after purchasing an additional 745,119 shares in the last quarter. Finally, Planning Alternatives Ltd. ADV purchased a new position in Texas Instruments in the first quarter valued at about $323,000. Hedge funds and other institutional investors own 84.99% of the company's stock.

Analysts Set New Price Targets

TXN has been the topic of a number of recent research reports. DZ Bank restated a "sell" rating and issued a $158.00 target price on shares of Texas Instruments in a research note on Wednesday, July 23rd. Benchmark upped their price target on Texas Instruments from $200.00 to $220.00 and gave the stock a "buy" rating in a research note on Wednesday, July 23rd. Citigroup reissued a "buy" rating on shares of Texas Instruments in a research report on Tuesday, July 22nd. Argus raised Texas Instruments to a "strong-buy" rating in a research report on Friday, April 25th. Finally, Arete Research raised Texas Instruments to a "hold" rating in a report on Thursday, June 26th. Four investment analysts have rated the stock with a sell rating, thirteen have given a hold rating, twelve have issued a buy rating and two have assigned a strong buy rating to the stock. According to data from MarketBeat.com, Texas Instruments has a consensus rating of "Hold" and an average price target of $212.21.

Texas Instruments Stock Up 1.5%

NASDAQ TXN opened at $185.40 on Wednesday. The firm has a market cap of $168.55 billion, a PE ratio of 33.96, a price-to-earnings-growth ratio of 3.00 and a beta of 1.03. Texas Instruments Incorporated has a one year low of $139.95 and a one year high of $221.69. The stock's 50 day simple moving average is $200.73 and its 200 day simple moving average is $185.17. The company has a debt-to-equity ratio of 0.86, a current ratio of 5.81 and a quick ratio of 3.88.

Texas Instruments (NASDAQ:TXN - Get Free Report) last announced its quarterly earnings data on Tuesday, July 22nd. The semiconductor company reported $1.41 EPS for the quarter, beating analysts' consensus estimates of $1.32 by $0.09. The firm had revenue of $4.45 billion for the quarter, compared to analyst estimates of $4.31 billion. Texas Instruments had a return on equity of 30.10% and a net margin of 30.23%. The business's quarterly revenue was up 16.4% compared to the same quarter last year. During the same period last year, the company earned $1.17 EPS. As a group, sell-side analysts forecast that Texas Instruments Incorporated will post 5.35 earnings per share for the current fiscal year.

Texas Instruments Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, August 12th. Shareholders of record on Thursday, July 31st will be given a $1.36 dividend. This represents a $5.44 dividend on an annualized basis and a yield of 2.9%. The ex-dividend date is Thursday, July 31st. Texas Instruments's dividend payout ratio (DPR) is presently 99.63%.

Texas Instruments Profile

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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