Texas Instruments Incorporated $TXN Stock: Verdence Capital Advisors LLC Decreases Holdings

Key Points

• Verdence Capital Advisors cut its Texas Instruments holdings by 60.5% in the third quarter, selling 9,220 shares and retaining 6,026 shares worth approximately $1.69 million. Institutional investors still own nearly 85% of TXN stock.
• Texas Instruments reported stronger-than-expected third-quarter results, with revenue up 27.7% year over year to $6.05 billion and EPS of $2.62. The company also raised its quarterly dividend to $1.52 per share, representing a 2.0% annualized yield.
• TXN benefits from improving margins and data-center demand, but investors face mixed analyst sentiment, automotive-chip concerns and additional financing obligations from $2 billion of newly issued senior notes.

Verdence Capital Advisors LLC lessened its holdings in Texas Instruments Incorporated (NASDAQ:TXN - Free Report) by 60.5% during the 3rd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 6,026 shares of the semiconductor company's stock after selling 9,220 shares during the quarter. Verdence Capital Advisors LLC's holdings in Texas Instruments were worth $1,688,000 as of its most recent SEC filing.

Other hedge funds also recently made changes to their positions in the company. Patton Albertson Miller Group LLC boosted its stake in Texas Instruments by 23.1% in the 3rd quarter. Patton Albertson Miller Group LLC now owns 1,317 shares of the semiconductor company's stock valued at $369,000 after buying an additional 247 shares in the last quarter. VUB Generali dochodkova spravcovska spolocnost a.s. grew its position in Texas Instruments by 13.9% in the third quarter. VUB Generali dochodkova spravcovska spolocnost a.s. now owns 2,222 shares of the semiconductor company's stock valued at $622,000 after acquiring an additional 272 shares during the period. B.O.S.S. Retirement Advisors LLC grew its position in Texas Instruments by 30.4% in the third quarter. B.O.S.S. Retirement Advisors LLC now owns 1,313 shares of the semiconductor company's stock valued at $368,000 after acquiring an additional 306 shares during the period. Leo Wealth LLC acquired a new position in Texas Instruments during the third quarter worth $827,000. Finally, Loring Wolcott & Coolidge Fiduciary Advisors LLP MA raised its stake in Texas Instruments by 0.7% during the third quarter. Loring Wolcott & Coolidge Fiduciary Advisors LLP MA now owns 6,580 shares of the semiconductor company's stock worth $1,843,000 after acquiring an additional 44 shares in the last quarter. Institutional investors and hedge funds own 84.99% of the company's stock.

Texas Instruments Price Performance

Shares of TXN stock opened at $309.83 on Thursday. The stock's fifty day moving average is $274.05 and its 200-day moving average is $257.59. The company has a debt-to-equity ratio of 0.67, a quick ratio of 4.05 and a current ratio of 5.59. Texas Instruments Incorporated has a 52 week low of $152.73 and a 52 week high of $334.03. The stock has a market capitalization of $282.95 billion, a PE ratio of 40.19, a PEG ratio of 1.43 and a beta of 1.35.

Texas Instruments (NASDAQ:TXN - Get Free Report) last issued its quarterly earnings data on Wednesday, October 21st. The semiconductor company reported $2.62 EPS for the quarter, topping analysts' consensus estimates of $2.40 by $0.22. Texas Instruments had a net margin of 34.25% and a return on equity of 40.51%. The firm had revenue of $6.05 billion for the quarter, compared to analyst estimates of $5.94 billion. During the same quarter in the prior year, the firm earned $1.48 EPS. The company's revenue was up 27.7% on a year-over-year basis. Equities research analysts expect that Texas Instruments Incorporated will post 8.85 EPS for the current fiscal year.

Texas Instruments Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, November 10th. Stockholders of record on Friday, October 30th will be given a dividend of $1.52 per share. The ex-dividend date is Friday, October 30th. This is a positive change 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 2.0%. Texas Instruments's dividend payout ratio (DPR) is currently 73.67%.

Key Stories Impacting Texas Instruments

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

• Positive Sentiment: Profitability improved sharply: Third-quarter gross margin rose to 64.2%, versus 57.4% a year earlier and 61.4% in the prior quarter. Higher sales and factory utilization supported stronger profits. TXN's Gross Margin Crosses 64% in Q3
• Positive Sentiment: Earnings beat expectations: Texas Instruments reported $6.055 billion in third-quarter revenue and $2.62 in diluted EPS, exceeding consensus estimates. Fourth-quarter guidance calls for revenue of $5.8 billion to $6.3 billion and EPS of $2.45 to $2.79. Earnings Beat Might Change Texas Instruments Stock Narrative
• Positive Sentiment: Data-center demand remains supportive: Management indicated demand from data-center customers is continuing to grow, helping offset concerns about cyclical industrial and automotive markets.
• Positive Sentiment: Buying and technical momentum: ETFs purchased approximately $37 million of TXN shares, while upward earnings-estimate revisions and a move above the 20-day moving average have reinforced the bullish narrative. ETFs Bought $37.0 Million of Texas Instruments
• Neutral Sentiment: Analyst stance is mixed: DZ Bank upgraded Texas Instruments from “sell” to “hold” but assigned a $300 price target, below the recent trading level. Bernstein also reportedly initiated or maintained a “hold” view, signaling limited conviction despite the earnings improvement. DZ Bank TXN Rating
• Negative Sentiment: Auto-chip concerns remain a near-term overhang: Soft guidance from NXP Semiconductors pressured automotive-focused chip stocks and weighed on Texas Instruments and other semiconductor peers, despite TXN’s broader industrial and data-center exposure. Auto Chip Concerns Pressure Semiconductor Stocks
• Negative Sentiment: New debt adds financing obligations: Texas Instruments priced $2 billion of senior notes carrying interest rates from 5.0% to 5.75%, increasing leverage and interest costs, although the proceeds may support capital needs and strategic investments. Texas Instruments Prices $2.0 Billion of Notes

Insider Activity

In other news, VP Tsedeniya Abraham sold 7,000 shares of the stock in a transaction that occurred 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 sale, the vice president directly owned 23,181 shares of the company's stock, valued at $6,134,388.03. This represents a 23.19% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Insiders own 0.60% of the company's stock.

Wall Street Analyst Weigh In

TXN has been the topic of several recent analyst reports. Benchmark boosted their target price on shares of Texas Instruments from $315.00 to $360.00 and gave the company a "buy" rating in a research note on Thursday, July 23rd. Barclays increased their target price on shares of Texas Instruments from $250.00 to $280.00 and gave the stock an "equal weight" rating in a research report on Thursday, October 22nd. Freedom Broker upgraded shares of Texas Instruments from a "hold" rating to a "buy" rating and increased their target price for the stock from $260.00 to $330.00 in a research report on Thursday, October 22nd. Sanford C. Bernstein lifted their price target on shares of Texas Instruments from $250.00 to $290.00 and gave the company a "market perform" rating in a report on Thursday, July 23rd. Finally, Cantor Fitzgerald restated a "neutral" rating on shares of Texas Instruments in a research report on Tuesday, October 20th. One equities research analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating, twelve have given a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, Texas Instruments presently has an average rating of "Moderate Buy" and an average target price of $315.37.

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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