Texas Instruments Incorporated $TXN Stock: E. Ohman J or Asset Management AB Increases Stake

Key Points

• E. Ohman Jor Asset Management AB increased its Texas Instruments stake by 215.1% in the third quarter, adding 70,000 shares to hold 102,541 shares worth approximately $28.7 million. Institutional investors collectively own 84.99% of TXN.
• Texas Instruments exceeded third-quarter expectations: Revenue rose 27.7% year over year to about $6.05 billion, while EPS of $2.62 surpassed the $2.40 consensus estimate. Data-center revenue grew 95%, supported by strength across industrial and automotive markets.
• Analyst sentiment remains mixed amid elevated valuation. The company raised its quarterly dividend to $1.52 per share, but TXN trades at a P/E ratio above 42, and its average analyst rating is “Hold” with a target price of $311.39.

E. Ohman J or Asset Management AB grew its holdings in Texas Instruments Incorporated (NASDAQ:TXN - Free Report) by 215.1% during the 3rd quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 102,541 shares of the semiconductor company's stock after acquiring an additional 70,000 shares during the period. E. Ohman J or Asset Management AB's holdings in Texas Instruments were worth $28,721,000 as of its most recent filing with the Securities & Exchange Commission.

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

Key Stories Impacting Texas Instruments

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

• Positive Sentiment: Q3 results exceeded expectations: Revenue rose 27.7% year over year to $6.06 billion, while EPS reached $2.62 versus the $2.40 consensus estimate. Net income increased 78% to $2.43 billion, supported by broad-based growth in industrial, automotive and data-center markets. Texas Instruments third-quarter financial results
• Positive Sentiment: Data-center demand is accelerating: Data-center revenue grew 95% year over year, while industrial demand reached a record level. Management also highlighted improving factory utilization and capacity expansion aimed at supporting long-term cash-flow growth. Texas Instruments key takeaways
• Positive Sentiment: Forecasts and analyst views improved: Fourth-quarter revenue guidance was reportedly above Wall Street expectations, and JPMorgan, Stifel, Rosenblatt and Freedom Broker raised their price targets, with targets ranging from $330 to $370. Texas Instruments earnings call highlights
• Neutral Sentiment: Options activity increased: Traders purchased 19,194 TXN call options, approximately 7% above average daily call volume, indicating heightened interest but not necessarily a sustained change in fundamentals.
• Negative Sentiment: Strong results were not enough to overcome valuation concerns: With TXN trading at a high earnings multiple, investors may have expected an even stronger outlook. Analysts noted that share performance could continue to lag business results if expectations remain elevated. Texas Instruments valuation analysis
• Negative Sentiment: Analyst opinion remains divided: Mizuho lowered its price target to $290 and kept a neutral rating, while Wells Fargo also maintained a cautious stance. This signals that some investors view much of the recovery as already reflected in the stock.

Texas Instruments Stock Down 1.8%

TXN stock opened at $279.50 on Friday. The firm has a 50 day simple moving average of $271.88 and a 200 day simple moving average of $279.43. The company has a debt-to-equity ratio of 0.72, a current ratio of 4.86 and a quick ratio of 3.44. The firm has a market cap of $255.25 billion, a PE ratio of 42.54, a P/E/G ratio of 1.59 and a beta of 1.35. Texas Instruments Incorporated has a 12 month low of $152.73 and a 12 month high of $334.03.

Texas Instruments (NASDAQ:TXN - Get Free Report) last issued its earnings results on Wednesday, October 21st. The semiconductor company reported $2.62 EPS for the quarter, topping the consensus estimate of $2.40 by $0.22. Texas Instruments had a return on equity of 41.79% and a net margin of 34.25%. The business had revenue of $6.05 billion during the quarter, compared to analysts' expectations of $5.94 billion. During the same quarter last year, the firm posted $1.48 earnings per share. Texas Instruments's revenue was up 27.7% compared to the same quarter last year. Equities research analysts forecast that Texas Instruments Incorporated will post 8.49 earnings per share for the current fiscal 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 issued a dividend of $1.52 per share. This represents a $6.08 dividend on an annualized basis and a dividend yield of 2.2%. This is a boost from Texas Instruments's previous quarterly dividend of $1.42. The ex-dividend date is Friday, October 30th. Texas Instruments's dividend payout ratio is presently 86.45%.

Wall Street Analyst Weigh In

Several research firms recently issued reports on TXN. Wells Fargo & Company cut their price objective on Texas Instruments from $310.00 to $300.00 and set an "equal weight" rating on the stock in a report on Tuesday. Morgan Stanley upped their price objective on Texas Instruments from $255.00 to $278.00 and gave the stock an "underweight" rating in a report on Thursday. Freedom Broker upgraded Texas Instruments from a "hold" rating to a "buy" rating and lifted their price objective for the stock from $260.00 to $330.00 in a research report on Thursday. Rosenblatt Securities increased their target price on shares of Texas Instruments from $350.00 to $360.00 and gave the stock a "buy" rating in a research report on Thursday. Finally, TD Cowen decreased their price target on Texas Instruments from $340.00 to $330.00 and set a "buy" rating for the company in a report on Monday. Sixteen research analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and three have assigned a Sell rating to the company's stock. Based on data from MarketBeat, Texas Instruments presently has an average rating of "Hold" and an average target price of $311.39.

Insider Transactions at Texas Instruments

In other news, VP Tsedeniya Abraham sold 7,000 shares of the company's stock in a transaction dated Thursday, August 27th. The shares were sold at an average price of $264.63, for a total value of $1,852,410.00. Following the sale, 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 position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. 0.60% of the stock is owned by company insiders.

Texas Instruments Company 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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