Texas Instruments Incorporated $TXN Stock: ProShare Advisors LLC Grows Stake

Key Points

• ProShare Advisors increased its Texas Instruments stake by 6.3% in the third quarter, reaching 1.18 million shares valued at approximately $330.7 million. Institutional investors collectively own about 85% of TXN.
• Texas Instruments reported strong quarterly results, with revenue rising 27.7% year over year to roughly $6.05 billion and EPS of $2.62 exceeding estimates. The company also raised its quarterly dividend to $1.52 per share, or $6.08 annually.
• Analysts maintain a broadly positive but cautious outlook, with a “Moderate Buy” consensus and average price target of $315.37. However, TXN’s elevated valuation and recent insider selling could limit further upside.

ProShare Advisors LLC boosted its holdings in shares of Texas Instruments Incorporated (NASDAQ:TXN - Free Report) by 6.3% in the 3rd quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm owned 1,180,722 shares of the semiconductor company's stock after purchasing an additional 69,560 shares during the quarter. Texas Instruments comprises approximately 0.5% of ProShare Advisors LLC's holdings, making the stock its 24th largest position. ProShare Advisors LLC owned about 0.13% of Texas Instruments worth $330,708,000 at the end of the most recent quarter.

Several other hedge funds have also added to or reduced their stakes in TXN. BlackRock Inc. bought a new position in shares of Texas Instruments during the 2nd quarter worth approximately $24,607,313,000. Bank of New York Mellon Corp raised its stake in Texas Instruments by 33.6% in the first quarter. Bank of New York Mellon Corp now owns 16,402,834 shares of the semiconductor company's stock valued at $3,184,446,000 after purchasing an additional 4,129,601 shares in the last quarter. Bank of America Corp DE bought a new position in shares of Texas Instruments during the second quarter valued at about $3,700,842,000. Van ECK Associates Corp increased its position in Texas Instruments by 1.5% during the 2nd quarter. Van ECK Associates Corp now owns 12,149,167 shares of the semiconductor company's stock valued at $3,621,302,000 after buying an additional 177,511 shares in the last quarter. Finally, Amundi grew its holdings in shares of Texas Instruments by 9.0% in the first quarter. Amundi now owns 9,064,214 shares of the semiconductor company's stock worth $1,759,727,000 after acquiring an additional 752,139 shares during the period. Institutional investors own 84.99% of the company's stock.

Texas Instruments News Summary

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

TXN has been the topic of a number of recent research reports. Mizuho dropped their target price on Texas Instruments from $305.00 to $290.00 and set a "neutral" rating on the stock in a research report on Thursday, October 22nd. JPMorgan Chase & Co. lifted their price target on shares of Texas Instruments from $340.00 to $365.00 and gave the stock an "overweight" rating in a research note on Thursday, October 22nd. Stifel Nicolaus boosted their target price on Texas Instruments from $360.00 to $370.00 and gave the stock a "buy" rating in a research report on Thursday, October 22nd. Citigroup restated a "buy" rating on shares of Texas Instruments in a research note on Thursday, October 22nd. Finally, Susquehanna restated a "positive" rating on shares of Texas Instruments in a report on Thursday, October 22nd. One research analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating, twelve have issued a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat.com, Texas Instruments has an average rating of "Moderate Buy" and an average target price of $315.37.

Insider Activity at Texas Instruments

In other Texas Instruments news, Director Ronald Kirk sold 6,065 shares of the company's stock in a transaction 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 transaction, the director owned 15,462 shares in the company, valued at approximately $4,799,250.18. This represents a 28.17% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, Director Robert Sanchez sold 6,065 shares of Texas Instruments stock in a transaction that occurred on Tuesday, October 27th. The shares were sold at an average price of $302.21, for a total transaction of $1,832,903.65. Following the sale, the director owned 21,600 shares of the company's stock, valued at approximately $6,527,736. The trade was a 21.92% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 27,968 shares of company stock valued at $8,236,892 over the last 90 days. 0.60% of the stock is owned by company insiders.

Texas Instruments Price Performance

TXN opened at $300.84 on Friday. The business has a fifty day moving average of $275.66 and a 200 day moving average of $258.76. Texas Instruments Incorporated has a 52-week low of $152.73 and a 52-week high of $334.03. The company has a quick ratio of 4.05, a current ratio of 5.59 and a debt-to-equity ratio of 0.67. The stock has a market cap of $274.90 billion, a P/E ratio of 39.02, a PEG ratio of 1.49 and a beta of 1.35.

Texas Instruments (NASDAQ:TXN - Get Free Report) last announced its earnings results on Wednesday, October 21st. The semiconductor company reported $2.62 earnings per share for the quarter, topping the consensus estimate of $2.40 by $0.22. Texas Instruments had a net margin of 34.25% and a return on equity of 40.51%. The business had revenue of $6.05 billion during the quarter, compared to the consensus estimate of $5.94 billion. During the same quarter in the prior year, the firm earned $1.48 earnings per share. The business's quarterly revenue was up 27.7% compared to the same quarter last year. As a group, sell-side analysts anticipate that Texas Instruments Incorporated will post 8.89 EPS for the current year.

Texas Instruments Increases Dividend

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

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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