Texas Instruments Incorporated $TXN Stock Sold by Investment House LLC

Key Points

• Investment House LLC cut its Texas Instruments stake by 33.3% in the third quarter, selling 34,327 shares and retaining 68,753 shares valued at approximately $19.3 million. Institutional investors collectively own 84.99% of TXN.
• Texas Instruments reported a strong quarter, with EPS of $2.62 beating estimates of $2.40 and revenue of about $6.05 billion rising 27.7% year over year. The company also raised its quarterly dividend to $1.52, or $6.08 annually.
• Despite strong results and positive analyst price-target revisions, TXN trades at a relatively high valuation, and Wall Street’s consensus rating remains Hold with an average price target of $311.39.

Investment House LLC lessened its stake in shares of Texas Instruments Incorporated (NASDAQ:TXN - Free Report) by 33.3% in the 3rd quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 68,753 shares of the semiconductor company's stock after selling 34,327 shares during the quarter. Texas Instruments accounts for about 0.8% of Investment House LLC's investment portfolio, making the stock its 22nd largest position. Investment House LLC's holdings in Texas Instruments were worth $19,257,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other hedge funds and other institutional investors have also modified their holdings of the stock. E. Ohman J or Asset Management AB lifted its stake in shares of Texas Instruments by 215.1% in the 3rd quarter. E. Ohman J or Asset Management AB now owns 102,541 shares of the semiconductor company's stock valued at $28,721,000 after purchasing an additional 70,000 shares during the period. SBI Securities Co. Ltd. increased its holdings in Texas Instruments by 0.3% in the third quarter. SBI Securities Co. Ltd. now owns 12,460 shares of the semiconductor company's stock valued at $3,490,000 after purchasing an additional 39 shares during the last quarter. Reyes Financial Architecture Inc. acquired a new position in Texas Instruments in the third quarter valued at about $36,000. Pinnacle Bancorp Inc. grew its position in shares of Texas Instruments by 149.7% during the 3rd quarter. Pinnacle Bancorp Inc. now owns 2,267 shares of the semiconductor company's stock worth $635,000 after buying an additional 1,359 shares during the period. Finally, Woodward Diversified Capital LLC grew its position in shares of Texas Instruments by 7.1% during the 3rd quarter. Woodward Diversified Capital LLC now owns 1,740 shares of the semiconductor company's stock worth $487,000 after buying an additional 116 shares during the period. Institutional investors own 84.99% of the company's stock.

Texas Instruments Stock Down 1.8%

TXN stock opened at $279.50 on Friday. 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 stock has a market capitalization of $255.25 billion, a P/E ratio of 42.54, a P/E/G ratio of 1.59 and a beta of 1.35. The business has a 50-day moving average of $271.88 and a 200-day moving average of $279.43. Texas Instruments Incorporated has a fifty-two week low of $152.73 and a fifty-two week high of $334.03.

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 (EPS) for the quarter, beating analysts' consensus estimates of $2.40 by $0.22. The business had revenue of $6.05 billion for the quarter, compared to analyst estimates of $5.94 billion. Texas Instruments had a return on equity of 41.79% and a net margin of 34.25%. Texas Instruments's revenue for the quarter was up 27.7% compared to the same quarter last year. During the same quarter last year, the firm earned $1.48 EPS. On average, sell-side analysts anticipate that Texas Instruments Incorporated will post 8.49 earnings per share for the current fiscal year.

Texas Instruments Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, November 10th. Stockholders of record on Friday, October 30th will be given a $1.52 dividend. 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 dividend yield of 2.2%. The ex-dividend date of this dividend is Friday, October 30th. Texas Instruments's payout ratio is presently 86.45%.

Key Texas Instruments News

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.

Wall Street Analyst Weigh In

A number of brokerages recently weighed in on TXN. Arete Research cut their price target on shares of Texas Instruments from $405.00 to $381.00 and set a "buy" rating on the stock in a research report on Thursday, August 20th. Stifel Nicolaus upped their target price on shares of Texas Instruments from $360.00 to $370.00 and gave the company a "buy" rating in a research note on Thursday. Cantor Fitzgerald reiterated a "neutral" rating on shares of Texas Instruments in a report on Tuesday. Citigroup reiterated a "buy" rating on shares of Texas Instruments in a report on Thursday. Finally, Evercore reiterated an "outperform" rating and issued a $330.00 price objective (up from $316.00) on shares of Texas Instruments in a research report on Thursday, July 23rd. Sixteen equities research analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and three have given a Sell rating to the company's stock. According to data from MarketBeat.com, Texas Instruments currently has a consensus rating of "Hold" and an average price target of $311.39.

Insider Activity at Texas Instruments

In related news, VP Tsedeniya Abraham sold 7,000 shares of the 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 in the company, valued at approximately $6,134,388.03. This represents a 23.19% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 0.60% of the stock is currently owned by corporate insiders.

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.

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