Insider Selling: Texas Instruments (NASDAQ:TXN) Director Sells 4,306 Shares of Stock

Key Points

• Director Janet Clark sold 4,306 Texas Instruments shares at an average price of $302.46, generating approximately $1.30 million. The sale reduced her direct holdings by 27.52% to 11,341 shares.
• Texas Instruments reported strong quarterly results, with revenue up 27.7% year over year to $6.05 billion and EPS of $2.62, beating estimates of $2.40. The company also raised its quarterly dividend to $1.52 per share, equivalent to a 1.9% yield.
• Shares traded near their 52-week high at about $312.94, with a consensus analyst rating of “Moderate Buy” and an average price target of $315.37. However, the stock’s roughly 40.6 P/E ratio leaves limited room for disappointing results, while automotive-chip demand remains a concern.

Texas Instruments Incorporated (NASDAQ:TXN - Get Free Report) Director Janet 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 value of $1,302,392.76. Following the sale, the director directly owned 11,341 shares in the company, valued at approximately $3,430,198.86. This trade represents a 27.52% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website.

Texas Instruments Stock Performance

TXN stock traded up $3.11 during trading on Thursday, reaching $312.94. 5,631,214 shares of the company's stock were exchanged, compared to its average volume of 7,598,907. The company has a quick ratio of 4.05, a current ratio of 5.59 and a debt-to-equity ratio of 0.67. Texas Instruments Incorporated has a 1-year low of $152.73 and a 1-year high of $334.03. The company's fifty day moving average price is $274.05 and its 200-day moving average price is $257.59. The firm has a market cap of $285.79 billion, a PE ratio of 40.59, a P/E/G ratio of 1.43 and a beta of 1.35.

Texas Instruments (NASDAQ:TXN - Get Free Report) last issued its quarterly earnings results on Wednesday, October 21st. The semiconductor company reported $2.62 EPS for the quarter, beating analysts' consensus estimates of $2.40 by $0.22. Texas Instruments had a return on equity of 40.51% and a net margin of 34.25%. The company had revenue of $6.05 billion for the quarter, compared to analyst estimates of $5.94 billion. During the same period last year, the company earned $1.48 earnings per share. The company's quarterly revenue was up 27.7% compared to the same quarter last year. On average, research analysts expect that Texas Instruments Incorporated will post 8.85 EPS 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 dividend of $1.52 per share. This is a positive change from Texas Instruments's previous quarterly dividend of $1.42. The ex-dividend date is Friday, October 30th. This represents a $6.08 annualized dividend and a dividend yield of 1.9%. Texas Instruments's payout ratio is 73.67%.

Wall Street Analysts Forecast Growth

Several research firms have issued reports on TXN. Rosenblatt Securities upped their price target on Texas Instruments from $350.00 to $360.00 and gave the company a "buy" rating in a report on Thursday, October 22nd. Wells Fargo & Company decreased their target price on Texas Instruments from $310.00 to $300.00 and set an "equal weight" rating on the stock in a report on Tuesday, October 20th. DZ Bank raised Texas Instruments from a "sell" rating to a "hold" rating and set a $300.00 target price on the stock in a research report on Wednesday. Susquehanna reaffirmed a "positive" rating on shares of Texas Instruments in a report on Thursday, October 22nd. Finally, Freedom Broker upgraded Texas Instruments from a "hold" rating to a "buy" rating and increased their price target for the company from $260.00 to $330.00 in a research report on Thursday, October 22nd. One analyst has rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating, twelve have given a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, Texas Instruments currently has an average rating of "Moderate Buy" and a consensus price target of $315.37.

Texas Instruments News Roundup

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

• Positive Sentiment: Texas Instruments reported third-quarter revenue of $6.055 billion, up approximately 28% year over year, while adjusted earnings of $2.62 per share exceeded the $2.40 consensus estimate. Management also forecast fourth-quarter revenue of $5.80 billion to $6.30 billion and earnings of $2.45 to $2.79 per share, reinforcing expectations for continued demand across industrial, automotive and data-center markets. Earnings Beat Might Change Texas Instruments Stock Narrative
• Positive Sentiment: Gross margin rose to 64.2% from 57.4% a year earlier and 61.4% in the prior quarter, helped by stronger sales and factory utilization. Further margin expansion could support earnings growth and improve investor confidence in the semiconductor recovery. TXN's Gross Margin Crosses 64% in Q3
• Positive Sentiment: The company recently raised its quarterly dividend to $1.52, and its substantial free-cash-flow generation supports the case for continued shareholder returns, although payout sustainability remains an investor question. Texas Instruments Dividend Comparison
• Neutral Sentiment: ETF buying provided a technical demand signal, with 41 funds adding TXN on October 27 and approximately $37 million of purchases reported for the prior Monday. Such flows may support the stock but do not change its fundamentals. 41 ETFs Add Texas Instruments
• Negative Sentiment: At roughly 40 times earnings and near its 52-week high, TXN has limited room for disappointing results. DZ Bank upgraded the stock only from “sell” to “hold” with a $300 target, while Bernstein also maintained a Hold rating. DZ Bank Texas Instruments Rating
• Negative Sentiment: Weak guidance from automotive-chip peer NXP revived concerns about auto demand and pressured semiconductor stocks, including Texas Instruments. Analysts’ bullish average recommendations may also be less reliable because sell-side ratings often skew optimistic. Semiconductor Peer Guidance Concerns

Institutional Investors Weigh In On Texas Instruments

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in TXN. Scarborough Advisors LLC acquired a new stake in Texas Instruments in the first quarter valued at approximately $29,000. Creative Capital Management Investments LLC grew its position in Texas Instruments by 167.5% in the third quarter. Creative Capital Management Investments LLC now owns 107 shares of the semiconductor company's stock worth $30,000 after acquiring an additional 67 shares in the last quarter. Kilter Group LLC acquired a new position in shares of Texas Instruments during the 2nd quarter worth $31,000. Main Street Group LTD acquired a new position in shares of Texas Instruments during the 1st quarter worth $32,000. Finally, Nvwm LLC increased its stake in shares of Texas Instruments by 550.0% during the 3rd 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. Hedge funds and other institutional investors own 84.99% of the company's stock.

About Texas Instruments

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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