Texas Instruments (NASDAQ:TXN) Shares Gap Up Following Better-Than-Expected Earnings

Texas Instruments Incorporated (NASDAQ:TXN - Get Free Report)'s share price gapped up prior to trading on Wednesday following a better than expected earnings announcement. The stock had previously closed at $165.47, but opened at $178.23. Texas Instruments shares last traded at $176.19, with a volume of 3,663,140 shares.

The semiconductor company reported $1.20 EPS for the quarter, beating the consensus estimate of $1.07 by $0.13. Texas Instruments had a return on equity of 39.96% and a net margin of 37.16%. The business had revenue of $3.66 billion for the quarter, compared to the consensus estimate of $3.61 billion. During the same quarter in the prior year, the business earned $1.85 earnings per share. Texas Instruments's revenue for the quarter was down 16.4% on a year-over-year basis.

Analysts Set New Price Targets

Several equities research analysts have issued reports on TXN shares. The Goldman Sachs Group increased their target price on Texas Instruments from $137.00 to $157.00 and gave the stock a "sell" rating in a research report on Wednesday. Evercore ISI increased their target price on Texas Instruments from $213.00 to $225.00 and gave the stock an "outperform" rating in a research report on Wednesday. JPMorgan Chase & Co. increased their target price on Texas Instruments from $180.00 to $195.00 and gave the stock an "overweight" rating in a research report on Wednesday. TD Cowen increased their target price on Texas Instruments from $160.00 to $175.00 and gave the stock a "hold" rating in a research report on Wednesday. Finally, Mizuho upped their price target on shares of Texas Instruments from $164.00 to $170.00 and gave the stock a "neutral" rating in a report on Wednesday. Three research analysts have rated the stock with a sell rating, ten have given a hold rating and seven have given a buy rating to the stock. According to data from MarketBeat, the company currently has an average rating of "Hold" and a consensus price target of $181.79.

Insiders Place Their Bets

In other Texas Instruments news, Director Mark A. Blinn sold 1,744 shares of the firm's stock in a transaction dated Wednesday, January 31st. The shares were sold at an average price of $159.85, for a total value of $278,778.40. Following the completion of the sale, the director now directly owns 11,693 shares in the company, valued at $1,869,126.05. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. 0.68% of the stock is currently owned by company insiders.

Institutional Trading of Texas Instruments

Several institutional investors and hedge funds have recently bought and sold shares of the stock. Norges Bank purchased a new position in shares of Texas Instruments during the fourth quarter valued at approximately $1,649,592,000. Morgan Stanley lifted its holdings in shares of Texas Instruments by 14.2% during the third quarter. Morgan Stanley now owns 14,154,358 shares of the semiconductor company's stock valued at $2,250,685,000 after purchasing an additional 1,755,582 shares during the last quarter. California Public Employees Retirement System lifted its holdings in shares of Texas Instruments by 33.2% during the fourth quarter. California Public Employees Retirement System now owns 6,035,704 shares of the semiconductor company's stock valued at $1,028,846,000 after purchasing an additional 1,502,989 shares during the last quarter. Assenagon Asset Management S.A. lifted its holdings in shares of Texas Instruments by 565.4% during the fourth quarter. Assenagon Asset Management S.A. now owns 1,693,577 shares of the semiconductor company's stock valued at $288,687,000 after purchasing an additional 1,439,066 shares during the last quarter. Finally, Baillie Gifford & Co. lifted its holdings in shares of Texas Instruments by 338.4% during the fourth quarter. Baillie Gifford & Co. now owns 1,795,191 shares of the semiconductor company's stock valued at $306,008,000 after purchasing an additional 1,385,725 shares during the last quarter. 84.99% of the stock is currently owned by hedge funds and other institutional investors.

Texas Instruments Stock Up 5.6 %

The company's fifty day moving average price is $168.66 and its 200-day moving average price is $161.99. The stock has a market capitalization of $159.09 billion, a PE ratio of 24.76, a price-to-earnings-growth ratio of 3.52 and a beta of 1.04. The company has a quick ratio of 3.35, a current ratio of 4.55 and a debt-to-equity ratio of 0.63.

About Texas Instruments

Texas Instruments Incorporated designs, manufactures, and sells semiconductors to electronics designers and manufacturers in the United States and internationally. The company operates through Analog and Embedded Processing segments. The Analog segment offers power products to manage power requirements across various voltage levels, including battery-management solutions, DC/DC switching regulators, AC/DC and isolated controllers and converters, power switches, linear regulators, voltage references, and lighting products.