Texas Instruments (NASDAQ:TXN) Director Robert Sanchez Sells 6,065 Shares of Stock

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

Texas Instruments Stock Performance

Shares of TXN stock opened at $312.94 on Friday. The company has a market cap of $285.96 billion, a P/E ratio of 40.59, a PEG ratio of 1.54 and a beta of 1.35. The firm has a fifty day moving average price of $274.96 and a 200 day moving average price of $258.21. The company has a current ratio of 5.59, a quick ratio of 4.05 and a debt-to-equity ratio of 0.67. Texas Instruments Incorporated has a 12 month low of $152.73 and a 12 month high of $334.03.

Texas Instruments (NASDAQ:TXN) last released its quarterly earnings data 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 business had revenue of $6.05 billion for the quarter, compared to the consensus estimate of $5.94 billion. During the same quarter in the prior year, the business posted $1.48 EPS. The business’s revenue for the quarter was up 27.7% on a year-over-year basis. Sell-side analysts predict that Texas Instruments Incorporated will post 8.89 earnings per share for the current fiscal year.

Texas Instruments Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, November 10th. Investors of record on Friday, October 30th will be paid a dividend of $1.52 per share. The ex-dividend date is Friday, October 30th. This represents a $6.08 annualized dividend and a yield of 1.9%. This is an increase from Texas Instruments’s previous quarterly dividend of $1.42. Texas Instruments’s dividend payout ratio (DPR) is 78.86%.

Key Texas Instruments News

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

• Positive Sentiment: Strong earnings and revenue growth support the stock. Texas Instruments reported third-quarter revenue of approximately $6.06 billion, up 27.7% year over year, and earnings per share of $2.62, exceeding the $2.40 consensus estimate. Management forecast fourth-quarter revenue of $5.80 billion to $6.30 billion and EPS of $2.45 to $2.79, suggesting continued demand across industrial, automotive and data-center markets. Earnings Beat Might Change Texas Instruments Stock Narrative
• Positive Sentiment: Profitability improved materially. Third-quarter gross margin rose to 64.2%, compared with 57.4% a year earlier and 61.4% in the prior quarter, as higher sales and factory utilization boosted operating leverage. TXN’s Gross Margin Crosses 64% in Q3
• Positive Sentiment: Institutional demand is a supportive signal. ETFs reportedly purchased about $37 million of TXN shares on Monday, while 41 ETFs added the stock on October 27, potentially providing incremental buying pressure. ETFs Bought $37.0 Million of Texas Instruments
• Neutral Sentiment: Analyst sentiment is broadly constructive but not decisive. Brokerage ratings point toward buying TXN, although such recommendations can be overly optimistic. DZ Bank upgraded the shares from “sell” to “hold,” but set a $300 price target, below the recent trading level. DZ Bank Texas Instruments Rating
• Negative Sentiment: Valuation and cash-flow expectations remain concerns. With TXN trading at a high earnings multiple, investors are questioning whether future free cash flow can justify the stock’s price, particularly as the company continues investing heavily in manufacturing capacity. Can Texas Instruments Justify Its Price On Future Cash Flow?
• Negative Sentiment: Director selling adds a modest cautionary signal. Three directors sold a combined 14,903 shares at prices near $302, reducing their individual holdings by roughly 12% to 28%. The transactions may reflect personal portfolio decisions, but could weigh on sentiment near the stock’s highs.
• Negative Sentiment: Sector risks remain. Weak guidance from NXP Semiconductor renewed concerns about automotive-chip demand and pressured portions of the semiconductor group, including Texas Instruments. Soft Guidance Revives Auto Chip Worries

Hedge Funds Weigh In On Texas Instruments

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Contravisory Investment Management Inc. acquired a new position in shares of Texas Instruments during the 2nd quarter worth $1,493,000. Diversify Advisory Services LLC increased its holdings in shares of Texas Instruments by 122.1% in the 3rd quarter. Diversify Advisory Services LLC now owns 24,545 shares of the semiconductor company’s stock valued at $6,851,000 after purchasing an additional 13,495 shares in the last quarter. Quantbot Technologies LP purchased a new position in shares of Texas Instruments in the 2nd quarter valued at about $1,962,000. Ieq Capital LLC acquired a new stake in shares of Texas Instruments in the second quarter valued at about $17,709,000. Finally, Liontrust Investment Partners LLP acquired a new stake in shares of Texas Instruments in the first quarter valued at about $13,056,000. Institutional investors and hedge funds own 84.99% of the company’s stock.

Analyst Ratings Changes

Several analysts recently commented on TXN shares. Mizuho reduced their price target on shares of Texas Instruments from $305.00 to $290.00 and set a “neutral” rating for the company in a research report on Thursday, October 22nd. Citigroup reiterated a “buy” rating on shares of Texas Instruments in a research report on Thursday, October 22nd. Morgan Stanley boosted their price objective on shares of Texas Instruments from $255.00 to $278.00 and gave the company an “underweight” rating in a research note on Thursday, October 22nd. TD Cowen cut their price objective on shares of Texas Instruments from $340.00 to $330.00 and set a “buy” rating for the company in a research report on Monday, October 19th. Finally, Robert W. Baird upped their price objective on shares of Texas Instruments from $300.00 to $385.00 and gave the stock an “outperform” rating in a research report on Thursday, July 23rd. One investment analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating, twelve have assigned a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $315.37.

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.