Insider Selling: Texas Instruments (NASDAQ:TXN) Director Sells $1,832,903.65 in Stock

Texas Instruments Incorporated (NASDAQ:TXN) Director Robert Sanchez sold 6,065 shares of Texas Instruments stock in a transaction dated Tuesday, October 27th. The shares were sold at an average price of $302.21, for a total transaction of $1,832,903.65. Following the sale, the director owned 21,600 shares of the company’s stock, valued at approximately $6,527,736. This represents a 21.92% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website.

Texas Instruments Trading Up 1.0%

Shares of Texas Instruments stock traded up $3.11 on Thursday, reaching $312.94. The company had a trading volume of 5,631,214 shares, compared to its average volume of 7,598,907. The firm’s 50 day moving average price is $274.05 and its two-hundred day moving average price 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 firm has a market cap of $285.79 billion, a PE ratio of 40.59, a PEG ratio of 1.43 and a beta of 1.35.

Texas Instruments (NASDAQ:TXN) last posted its quarterly earnings data on Wednesday, October 21st. The semiconductor company reported $2.62 earnings per share 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 during the quarter, compared to analysts’ expectations of $5.94 billion. During the same quarter last year, the company posted $1.48 EPS. The firm’s quarterly revenue was up 27.7% on a year-over-year basis. Sell-side analysts predict that Texas Instruments Incorporated will post 8.85 earnings per share for the current fiscal year.

Texas Instruments Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, November 10th. Shareholders of record on Friday, October 30th will be paid a dividend of $1.52 per share. This represents a $6.08 dividend on an annualized basis and a yield of 1.9%. This is a positive change from Texas Instruments’s previous quarterly dividend of $1.42. The ex-dividend date is Friday, October 30th. Texas Instruments’s payout ratio is currently 73.67%.

Trending Headlines about Texas Instruments

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 Inflows and Outflows

A number of hedge funds have recently modified their holdings of TXN. BlackRock Inc. acquired a new position in shares of Texas Instruments in the 2nd quarter valued at $24,607,313,000. Bank of New York Mellon Corp purchased a new position in shares of Texas Instruments during the second quarter worth about $4,488,666,000. Bank of America Corp DE acquired a new position in Texas Instruments in the 2nd quarter valued at about $3,700,842,000. Primecap Management Co. CA purchased a new position in shares of Texas Instruments in the 2nd quarter valued at approximately $2,538,063,000. Finally, Legal & General Group Plc acquired a new position in shares of Texas Instruments in the second quarter valued at approximately $1,918,277,000. 84.99% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

Several equities research analysts recently issued reports on the company. Citigroup reiterated a “buy” rating on shares of Texas Instruments in a report on Thursday, October 22nd. Morgan Stanley increased their price objective on Texas Instruments from $255.00 to $278.00 and gave the company an “underweight” rating in a research note on Thursday, October 22nd. Zacks Research upgraded Texas Instruments from a “hold” rating to a “strong-buy” rating in a report on Thursday, October 22nd. Weiss Ratings cut shares of Texas Instruments from a “buy (b)” rating to a “buy (b-)” rating in a report on Friday, October 23rd. Finally, Arete Research lowered their target price on shares of Texas Instruments from $405.00 to $381.00 and set a “buy” rating for the company in a research note on Thursday, August 20th. One investment analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating, twelve have issued a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, the stock currently has a consensus 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.