Texas Instruments Incorporated $TXN Holdings Reduced by Gradient Investments LLC

Key Points

• Gradient Investments reduced its Texas Instruments stake by 15.2% in the third quarter, selling 11,216 shares and retaining 62,343 shares valued at approximately $17.5 million. Institutional investors collectively own 84.99% of TXN.
• Texas Instruments reported strong quarterly results, with EPS of $2.14 and revenue of $5.46 billion, exceeding analyst estimates; revenue increased 22.8% year over year.
• The company raised its quarterly dividend from $1.42 to $1.52 per share, equivalent to a $6.08 annualized payout and a 2.1% yield. Analysts’ average price target is $304.26, compared with a “Hold” consensus rating.

Gradient Investments LLC lowered its stake in shares of Texas Instruments Incorporated (NASDAQ:TXN - Free Report) by 15.2% in the third quarter, according to its most recent 13F filing with the SEC. The fund owned 62,343 shares of the semiconductor company's stock after selling 11,216 shares during the period. Gradient Investments LLC's holdings in Texas Instruments were worth $17,462,000 at the end of the most recent quarter.

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

Texas Instruments Trading Down 1.3%

Texas Instruments stock traded down $3.71 during midday trading on Thursday, hitting $285.27. 1,922,578 shares of the stock were exchanged, compared to its average volume of 7,581,263. Texas Instruments Incorporated has a fifty-two week low of $152.73 and a fifty-two week high of $334.03. The stock has a market capitalization of $260.52 billion, a price-to-earnings ratio of 43.35, a PEG ratio of 1.66 and a beta of 1.35. The stock's 50-day simple moving average is $271.18 and its 200 day simple moving average is $272.55. The company has a current ratio of 4.86, a quick ratio of 3.44 and a debt-to-equity ratio of 0.72.

Texas Instruments (NASDAQ:TXN - Get Free Report) last posted its earnings results on Wednesday, July 22nd. The semiconductor company reported $2.14 earnings per share for the quarter, beating the consensus estimate of $1.91 by $0.23. Texas Instruments had a net margin of 31.11% and a return on equity of 35.77%. The company had revenue of $5.46 billion for the quarter, compared to analyst estimates of $5.26 billion. During the same period in the previous year, the business posted $1.41 EPS. Texas Instruments's revenue was up 22.8% on a year-over-year basis. Texas Instruments has set its Q3 2026 guidance at 2.230-2.570 EPS. On average, equities analysts anticipate that Texas Instruments Incorporated will post 8.45 EPS for the current year.

Texas Instruments Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, November 10th. Stockholders of record on Friday, October 30th will be paid a $1.52 dividend. 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. This represents a $6.08 annualized dividend and a dividend yield of 2.1%. Texas Instruments's dividend payout ratio is currently 86.45%.

Wall Street Analysts Forecast Growth

A number of equities analysts have issued reports on the company. UBS Group reiterated a "buy" rating and set a $380.00 price target (up from $350.00) on shares of Texas Instruments in a research report on Thursday, July 23rd. Wells Fargo & Company upped their price objective on shares of Texas Instruments from $300.00 to $310.00 and gave the stock an "equal weight" rating in a research report on Thursday, July 23rd. The Goldman Sachs Group lifted their target price on shares of Texas Instruments from $200.00 to $225.00 and gave the company a "sell" rating in a research report on Thursday, July 23rd. Cantor Fitzgerald restated a "neutral" rating and issued a $300.00 target price (up from $280.00) on shares of Texas Instruments in a research report on Wednesday, September 9th. Finally, Wall Street Zen upgraded Texas Instruments from a "hold" rating to a "buy" rating in a research report on Saturday, July 18th. Sixteen equities research analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and four have assigned a Sell rating to the company. According to MarketBeat, the stock presently has an average rating of "Hold" and an average price target of $304.26.

Insider Buying and Selling at Texas Instruments

In related news, VP Tsedeniya Abraham sold 7,000 shares of the firm's stock in a transaction dated Thursday, August 27th. The stock was sold at an average price of $264.63, for a total transaction of $1,852,410.00. Following the completion of the sale, the vice president directly owned 23,181 shares of the company's stock, valued at approximately $6,134,388.03. This trade represents a 23.19% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Corporate insiders own 0.60% of the company's stock.

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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