Texas Instruments Incorporated $TXN Stock Sold by Bokf Na

Key Points

• Bokf Na reduced its Texas Instruments stake by 13.1% in the third quarter, selling 4,427 shares and retaining 29,255 shares worth approximately $8.2 million. Hedge funds and institutional investors collectively own 84.99% of TXN.
• Texas Instruments reported strong third-quarter results, with revenue up 27.7% year over year to about $6.05 billion and EPS of $2.62, beating estimates. Gross margin improved to 64.2%, and the company raised its quarterly dividend from $1.42 to $1.52 per share.
• Analyst sentiment remains broadly positive, with a consensus “Moderate Buy” rating and average price target of $315.37, but valuation and insider selling remain concerns as the stock trades at a high earnings multiple and directors have recently sold shares.

Bokf Na decreased its holdings in shares of Texas Instruments Incorporated (NASDAQ:TXN - Free Report) by 13.1% during the third quarter, according to the company in its most recent disclosure with the SEC. The fund owned 29,255 shares of the semiconductor company's stock after selling 4,427 shares during the quarter. Bokf Na's holdings in Texas Instruments were worth $8,194,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors have also recently modified their holdings of the business. Kilter Group LLC purchased a new stake in Texas Instruments in the second quarter worth $31,000. Nvwm LLC lifted its position in shares of Texas Instruments by 550.0% during the third quarter. Nvwm LLC now owns 117 shares of the semiconductor company's stock worth $33,000 after purchasing an additional 99 shares during the last quarter. Addison Advisors LLC purchased a new stake in shares of Texas Instruments during the second quarter valued at $38,000. Reyes Financial Architecture Inc. purchased a new stake in shares of Texas Instruments during the third quarter valued at $36,000. Finally, Caitlin John LLC bought a new position in shares of Texas Instruments in the second quarter worth about $41,000. 84.99% of the stock is currently owned by hedge funds and other institutional investors.

Texas Instruments News Summary

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

• Positive Sentiment: Strong earnings and revenue growth support the stock. Texas Instruments reported third-quarter revenue of approximately $6.06 billion, up 27.7% year over year, and earnings per share of $2.62, exceeding the $2.40 consensus estimate. Management forecast fourth-quarter revenue of $5.80 billion to $6.30 billion and EPS of $2.45 to $2.79, suggesting continued demand across industrial, automotive and data-center markets. Earnings Beat Might Change Texas Instruments Stock Narrative
• Positive Sentiment: Profitability improved materially. Third-quarter gross margin rose to 64.2%, compared with 57.4% a year earlier and 61.4% in the prior quarter, as higher sales and factory utilization boosted operating leverage. TXN's Gross Margin Crosses 64% in Q3
• Positive Sentiment: Institutional demand is a supportive signal. ETFs reportedly purchased about $37 million of TXN shares on Monday, while 41 ETFs added the stock on October 27, potentially providing incremental buying pressure. ETFs Bought $37.0 Million of Texas Instruments
• Neutral Sentiment: Analyst sentiment is broadly constructive but not decisive. Brokerage ratings point toward buying TXN, although such recommendations can be overly optimistic. DZ Bank upgraded the shares from “sell” to “hold,” but set a $300 price target, below the recent trading level. DZ Bank Texas Instruments Rating
• Negative Sentiment: Valuation and cash-flow expectations remain concerns. With TXN trading at a high earnings multiple, investors are questioning whether future free cash flow can justify the stock’s price, particularly as the company continues investing heavily in manufacturing capacity. Can Texas Instruments Justify Its Price On Future Cash Flow?
• Negative Sentiment: Director selling adds a modest cautionary signal. Three directors sold a combined 14,903 shares at prices near $302, reducing their individual holdings by roughly 12% to 28%. The transactions may reflect personal portfolio decisions, but could weigh on sentiment near the stock’s highs.
• Negative Sentiment: Sector risks remain. Weak guidance from NXP Semiconductor renewed concerns about automotive-chip demand and pressured portions of the semiconductor group, including Texas Instruments. Soft Guidance Revives Auto Chip Worries

Wall Street Analysts Forecast Growth

A number of equities research analysts recently weighed in on the stock. JPMorgan Chase & Co. lifted their price objective on shares of Texas Instruments from $340.00 to $365.00 and gave the company an "overweight" rating in a report on Thursday, October 22nd. Truist Financial set a $305.00 target price on shares of Texas Instruments in a research note on Thursday, October 22nd. Cantor Fitzgerald reaffirmed a "neutral" rating on shares of Texas Instruments in a research report on Tuesday, October 20th. Mizuho decreased their price target on shares of Texas Instruments from $305.00 to $290.00 and set a "neutral" rating for the company in a research note on Thursday, October 22nd. Finally, TD Cowen lowered 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, October 19th. One equities research 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 issued a Sell rating to the company's stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of $315.37.

Insider Buying and Selling

In other news, Director Janet F. Clark sold 4,306 shares of Texas Instruments stock in a transaction that occurred on Tuesday, October 27th. The shares were sold at an average price of $302.46, for a total transaction of $1,302,392.76. Following the completion of the transaction, the director directly owned 11,341 shares of the company's stock, valued at $3,430,198.86. The trade was a 27.52% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, VP Tsedeniya Abraham sold 7,000 shares of the business's stock in a transaction 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 completion of 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. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 21,903 shares of company stock valued at $6,354,376. Insiders own 0.60% of the company's stock.

Texas Instruments Price Performance

Shares of NASDAQ TXN opened at $312.94 on Friday. Texas Instruments Incorporated has a fifty-two week low of $152.73 and a fifty-two week high of $334.03. The company has a market cap of $285.96 billion, a PE ratio of 40.59, a P/E/G ratio of 1.54 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. The business has a 50-day simple moving average of $274.96 and a two-hundred day simple moving average of $258.21.

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

Texas Instruments Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, November 10th. Shareholders of record on Friday, October 30th will be issued a $1.52 dividend. The ex-dividend date of this dividend is Friday, October 30th. This is a boost from Texas Instruments's previous quarterly dividend of $1.42. This represents a $6.08 dividend on an annualized basis and a yield of 1.9%. Texas Instruments's dividend payout ratio is presently 78.86%.

Texas Instruments 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.

Want to see what other hedge funds are holding TXN? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Texas Instruments Incorporated (NASDAQ:TXN - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.