Profund Advisors LLC Sells 11,530 Shares of Texas Instruments Incorporated $TXN

Key Points

• Profund Advisors reduced its Texas Instruments position by 9.2%, selling 11,530 shares and retaining 114,338 shares valued at approximately $32.0 million. Institutional investors collectively own about 85% of TXN.
• Texas Instruments reported strong quarterly results, with revenue up 27.7% year over year to roughly $6.05 billion and EPS of $2.62, exceeding consensus estimates. The company also raised its quarterly dividend to $1.52, or $6.08 annually.
• Analyst sentiment remains a Moderate Buy, with a consensus price target of $315.37, but the stock’s elevated valuation and recent insider selling—including directors’ sales—are potential cautionary signals.

Profund Advisors LLC lowered its holdings in shares of Texas Instruments Incorporated (NASDAQ:TXN - Free Report) by 9.2% in the third quarter, according to its most recent disclosure with the SEC. The firm owned 114,338 shares of the semiconductor company's stock after selling 11,530 shares during the period. Texas Instruments accounts for approximately 0.9% of Profund Advisors LLC's holdings, making the stock its 20th largest position. Profund Advisors LLC's holdings in Texas Instruments were worth $32,025,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors also recently modified their holdings of the company. BlackRock Inc. acquired a new position in Texas Instruments during the second quarter worth $24,607,313,000. Bank of New York Mellon Corp purchased a new stake in Texas Instruments in the second quarter worth about $4,488,666,000. Bank of America Corp DE bought a new position in Texas Instruments during the second quarter valued at approximately $3,700,842,000. Primecap Management Co. CA purchased a new stake in shares of Texas Instruments in the second quarter worth approximately $2,538,063,000. Finally, Legal & General Group Plc purchased a new position in shares of Texas Instruments in the 2nd quarter valued at $1,918,277,000. Institutional investors own 84.99% of the company's stock.

Texas Instruments News Roundup

Here are the key news stories impacting Texas Instruments this week:

• Positive Sentiment: Strong quarterly performance supports the investment case. Texas Instruments reported approximately $6.06 billion in revenue, up 27.7% year over year, while EPS of $2.62 exceeded the $2.40 consensus estimate. The company also guided for fourth-quarter revenue of $5.80 billion to $6.30 billion and EPS of $2.45 to $2.79. Texas Instruments Reports Revenue Growth
• Positive Sentiment: Dividend growth and ETF buying provide support. TXN raised its quarterly dividend to $1.52 from $1.42, equivalent to $6.08 annually and a yield of roughly 1.9%. Reports also indicated that ETFs bought about $37 million of shares on October 26, while 41 ETFs added TXN on October 27. Texas Instruments Dividend Comparison
• Neutral Sentiment: Analyst views are constructive but cautious. DZ Bank raised TXN to “Hold,” with a $300 price target. The broader analyst consensus remains “Moderate Buy,” although several firms maintain neutral, underweight or sell ratings and valuation targets vary widely. DZ Bank Raises Texas Instruments to Hold
• Negative Sentiment: Valuation is making investors question further upside. Articles from Trefis and Yahoo Finance focus on whether TXN’s elevated earnings multiple can be justified by future free cash flow, particularly as the company continues investing heavily in manufacturing capacity. Should You Buy Texas Instruments Stock Now or Wait?
• Negative Sentiment: Multiple directors sold shares. Directors Janet Clark, Robert Sanchez and Pamela Patsley sold a combined 14,903 shares near $302 per share, reducing their individual holdings by approximately 12% to 28%. Although these transactions may reflect personal financial decisions, they add a cautionary signal while TXN trades near its highs. Texas Instruments Insider Selling

Wall Street Analysts Forecast Growth

A number of analysts recently issued reports on TXN shares. Benchmark raised their price objective on Texas Instruments from $315.00 to $360.00 and gave the stock a "buy" rating in a research report on Thursday, July 23rd. JPMorgan Chase & Co. raised their price target on shares of Texas Instruments from $340.00 to $365.00 and gave the stock an "overweight" rating in a research report on Thursday, October 22nd. Zacks Research raised shares of Texas Instruments from a "hold" rating to a "strong-buy" rating in a research note on Thursday, October 22nd. Barclays boosted their price target on shares of Texas Instruments from $250.00 to $280.00 and gave the company an "equal weight" rating in a report on Thursday, October 22nd. Finally, Freedom Broker raised shares of Texas Instruments from a "hold" rating to a "buy" rating and boosted their price target for the company from $260.00 to $330.00 in a report on Thursday, October 22nd. One investment analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating, twelve have assigned a Hold rating and two have assigned a Sell rating to the company's stock. According to MarketBeat, Texas Instruments has a consensus rating of "Moderate Buy" and a consensus price target of $315.37.

Texas Instruments Price Performance

NASDAQ TXN opened at $300.84 on Friday. The stock has a 50-day moving average of $275.66 and a 200 day moving average of $258.76. Texas Instruments Incorporated has a one year low of $152.73 and a one year high of $334.03. The company has a market capitalization of $274.90 billion, a price-to-earnings ratio of 39.02, a PEG ratio of 1.49 and a beta of 1.35. The company has a debt-to-equity ratio of 0.67, a quick ratio of 4.05 and a current ratio of 5.59.

Texas Instruments (NASDAQ:TXN - Get Free Report) last released its quarterly earnings data on Wednesday, October 21st. The semiconductor company reported $2.62 earnings per share for the quarter, topping 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 during the quarter, compared to analyst estimates of $5.94 billion. During the same period in the prior year, the firm earned $1.48 earnings per share. The firm's revenue for the quarter was up 27.7% compared to the same quarter last year. On average, sell-side analysts forecast that Texas Instruments Incorporated will post 8.89 EPS for the current year.

Texas Instruments Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, November 10th. Shareholders of record on Friday, October 30th will be given a $1.52 dividend. This represents a $6.08 annualized dividend and a yield of 2.0%. This is a boost from Texas Instruments's previous quarterly dividend of $1.42. The ex-dividend date of this dividend is Friday, October 30th. Texas Instruments's dividend payout ratio is 73.67%.

Insider Transactions at Texas Instruments

In other Texas Instruments news, Director Ronald Kirk sold 6,065 shares of the firm's stock in a transaction that occurred on Thursday, October 29th. The shares were sold at an average price of $310.39, for a total transaction of $1,882,515.35. Following the sale, the director directly owned 15,462 shares in the company, valued at approximately $4,799,250.18. This trade represents a 28.17% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, VP Tsedeniya Abraham sold 7,000 shares of the business's stock in a transaction that occurred on Thursday, August 27th. The shares were sold at an average price of $264.63, for a total transaction of $1,852,410.00. Following the transaction, the vice president owned 23,181 shares of the company's stock, valued at approximately $6,134,388.03. This represents a 23.19% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 27,968 shares of company stock worth $8,236,892 in the last quarter. 0.60% of the stock is currently owned by corporate insiders.

About Texas Instruments

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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