Texas Instruments Incorporated $TXN Stock Sold by VestGen Advisors LLC

Key Points

• VestGen Advisors cut its Texas Instruments position by 43.2% in the third quarter, selling 5,694 shares and retaining 7,497 shares valued at approximately $2.1 million. Institutional investors overall own about 85% of TXN.
• Texas Instruments reported strong third-quarter results, with revenue up 27.7% year over year to roughly $6.05 billion and EPS of $2.62, beating analyst expectations. The company also raised its quarterly dividend to $1.52, or $6.08 annualized.
• Analyst sentiment remains generally positive, with a “Moderate Buy” consensus and an average price target of $315.37, but valuation concerns, heavy manufacturing investment, director stock sales, and broader automotive-chip weakness pose risks.

VestGen Advisors LLC decreased its position in shares of Texas Instruments Incorporated (NASDAQ:TXN - Free Report) by 43.2% in the 3rd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 7,497 shares of the semiconductor company's stock after selling 5,694 shares during the quarter. VestGen Advisors LLC's holdings in Texas Instruments were worth $2,100,000 as of its most recent filing with the Securities & Exchange Commission.

Several other hedge funds and other institutional investors have also recently modified their holdings of the company. Vaquero Private Wealth Ltd. lifted its stake in shares of Texas Instruments by 0.8% in the third quarter. Vaquero Private Wealth Ltd. now owns 17,333 shares of the semiconductor company's stock valued at $4,855,000 after buying an additional 146 shares in the last quarter. William Mack & Associates Inc. acquired a new position in shares of Texas Instruments during the third quarter valued at about $79,000. Great Lakes Retirement Inc. increased its position in shares of Texas Instruments by 1.3% during the third quarter. Great Lakes Retirement Inc. now owns 13,380 shares of the semiconductor company's stock worth $3,748,000 after acquiring an additional 172 shares in the last quarter. Generali Asset Management SPA SGR increased its position in shares of Texas Instruments by 1.5% during the third quarter. Generali Asset Management SPA SGR now owns 61,889 shares of the semiconductor company's stock worth $17,334,000 after acquiring an additional 889 shares in the last quarter. Finally, Jacobsen Capital Management increased its position in shares of Texas Instruments by 6.4% during the third quarter. Jacobsen Capital Management now owns 1,379 shares of the semiconductor company's stock worth $386,000 after acquiring an additional 83 shares in the last quarter. Institutional investors own 84.99% of the company's stock.

Analyst Upgrades and Downgrades

TXN has been the topic of several recent research reports. Wall Street Zen raised shares of Texas Instruments from a "hold" rating to a "buy" rating in a research report on Saturday, July 18th. Evercore reiterated an "outperform" rating and set a $330.00 price target (up from $316.00) on shares of Texas Instruments in a research note on Thursday, July 23rd. Cantor Fitzgerald reissued a "neutral" rating on shares of Texas Instruments in a report on Tuesday, October 20th. Jefferies Financial Group increased their price objective on Texas Instruments from $260.00 to $300.00 and gave the stock a "hold" rating in a research note on Thursday, October 22nd. Finally, Freedom Broker raised Texas Instruments from a "hold" rating to a "buy" rating and increased their price objective for the stock from $260.00 to $330.00 in a research note on Thursday, October 22nd. One investment 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 given a Sell rating to the company. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $315.37.

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

Texas Instruments Stock Up 1.0%

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 firm has a market capitalization of $285.96 billion, a P/E ratio of 40.59, a PEG ratio of 1.54 and a beta of 1.35. The company's 50-day moving average is $274.96 and its 200 day moving average is $258.21. The company has a debt-to-equity ratio of 0.67, a current ratio of 5.59 and a quick ratio of 4.05.

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

Texas Instruments Increases Dividend

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

Insiders Place Their Bets

In related news, Director Robert Sanchez sold 6,065 shares of the stock in a transaction that occurred on Tuesday, October 27th. The stock was sold at an average price of $302.21, for a total transaction of $1,832,903.65. Following the completion of the sale, the director directly owned 21,600 shares of the company's stock, valued at approximately $6,527,736. This trade represents a 21.92% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Pamela Patsley sold 4,532 shares of Texas Instruments stock in a transaction on Tuesday, October 27th. The stock was sold at an average price of $301.56, for a total value of $1,366,669.92. Following the sale, the director owned 34,487 shares in the company, valued at $10,399,899.72. This trade represents a 11.61% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In 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 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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