Texas Instruments (NASDAQ:TXN) Issues Quarterly Earnings Results, Beats Estimates By $0.19 EPS

Texas Instruments (NASDAQ:TXN) released its quarterly earnings results on Wednesday. The semiconductor company reported $2.62 earnings per share for the quarter, topping the consensus estimate of $2.43 by $0.19, Zacks reports. Texas Instruments had a net margin of 31.11% and a return on equity of 35.77%.

Texas Instruments Stock Performance

Shares of NASDAQ TXN traded up $6.44 during trading on Wednesday, reaching $284.22. 6,524,504 shares of the stock traded hands, compared to its average volume of 7,554,749. The company has a debt-to-equity ratio of 0.72, a current ratio of 4.86 and a quick ratio of 3.44. The stock has a market capitalization of $259.57 billion, a P/E ratio of 43.26, a price-to-earnings-growth ratio of 1.54 and a beta of 1.35. Texas Instruments has a 52-week low of $152.73 and a 52-week high of $334.03. The company has a 50-day moving average of $271.60 and a 200-day moving average of $278.20.

Texas Instruments Increases Dividend

The company also recently declared 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 of this dividend is Friday, October 30th. This represents a $6.08 dividend on an annualized basis and a dividend yield of 2.1%. This is a boost from Texas Instruments’s previous quarterly dividend of $1.42. Texas Instruments’s payout ratio is currently 92.54%.

Wall Street Analyst Weigh In

Several equities analysts have commented on the stock. Truist Financial lifted their target price on shares of Texas Instruments from $278.00 to $300.00 and gave the stock a “hold” rating in a research report on Thursday, July 23rd. KeyCorp upped their target price on Texas Instruments from $390.00 to $400.00 and gave the company an “overweight” rating in a report on Thursday, July 23rd. Wells Fargo & Company decreased their price target on Texas Instruments from $310.00 to $300.00 and set an “equal weight” rating for the company in a research report on Tuesday. Robert W. Baird lifted their price target on Texas Instruments from $300.00 to $385.00 and gave the stock an “outperform” rating in a report on Thursday, July 23rd. Finally, JPMorgan Chase & Co. boosted their price objective on Texas Instruments from $280.00 to $340.00 and gave the stock an “overweight” rating in a research report on Thursday, July 23rd. Sixteen research analysts have rated the stock with a Buy rating, ten have issued a Hold rating and four have issued a Sell rating to the stock. According to MarketBeat, Texas Instruments has a consensus rating of “Hold” and an average target price of $302.88.

Key Stories Impacting Texas Instruments

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

• Positive Sentiment: Investors are positioning ahead of the earnings release, with expectations for approximately $2.42 in third-quarter EPS and $5.92 billion in revenue. Texas Instruments previously guided to revenue of $5.65 billion to $6.15 billion and EPS of $2.23 to $2.57. A strong result or upbeat fourth-quarter outlook could provide another catalyst. Texas Instruments rises as investors position ahead of Q3 results
• Positive Sentiment: Recovering chip demand and moderating factory spending are improving the company’s profit outlook. Analysts and investors are watching whether recently added capacity can support longer-term growth rather than merely amplify a cyclical rebound. Texas Instruments sees profits recover, but is the stock still expensive?
• Positive Sentiment: Texas Instruments raised its quarterly dividend by 7% to $1.52 per share, supporting its shareholder-return narrative and potentially helping sentiment among income-focused investors. Is Texas Instruments’ cash recovery real?

Insider Buying and Selling at Texas Instruments

In other news, VP Tsedeniya Abraham sold 7,000 shares of Texas Instruments stock in a transaction on Thursday, August 27th. The stock was sold at an average price of $264.63, for a total value of $1,852,410.00. Following the completion of the transaction, the vice president directly owned 23,181 shares in the company, valued at approximately $6,134,388.03. The trade was a 23.19% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. 0.60% of the stock is owned by insiders.

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.