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

Texas Instruments Incorporated (NASDAQ:TXN) gapped up prior to trading on Wednesday following a stronger than expected earnings report. The stock had previously closed at $193.97, but opened at $201.04. Texas Instruments shares last traded at $201.61, with a volume of 2,177,758 shares.

The semiconductor company reported $1.47 EPS for the quarter, topping the consensus estimate of $1.38 by $0.09. The firm had revenue of $4.15 billion during the quarter, compared to analyst estimates of $4.12 billion. Texas Instruments had a return on equity of 31.10% and a net margin of 33.01%. During the same period in the prior year, the business posted $1.80 EPS. Texas Instruments’s revenue was down 8.4% on a year-over-year basis.

Texas Instruments Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, November 12th. Shareholders of record on Thursday, October 31st will be paid a $1.36 dividend. This represents a $5.44 dividend on an annualized basis and a yield of 2.70%. The ex-dividend date of this dividend is Thursday, October 31st. This is a positive change from Texas Instruments’s previous quarterly dividend of $1.30. Texas Instruments’s dividend payout ratio is presently 90.28%.

Analyst Ratings Changes

A number of equities research analysts have issued reports on the company. Stifel Nicolaus increased their price target on Texas Instruments from $172.00 to $200.00 and gave the stock a “hold” rating in a research note on Thursday, July 18th. Cantor Fitzgerald reissued a “neutral” rating and set a $200.00 price objective on shares of Texas Instruments in a report on Wednesday. JPMorgan Chase & Co. increased their price objective on shares of Texas Instruments from $195.00 to $230.00 and gave the company an “overweight” rating in a report on Wednesday, July 24th. Jefferies Financial Group increased their price target on shares of Texas Instruments from $175.00 to $185.00 and gave the company a “hold” rating in a report on Wednesday, July 24th. Finally, Citigroup raised shares of Texas Instruments from a “neutral” rating to a “buy” rating and increased their price target for the company from $200.00 to $235.00 in a report on Wednesday, August 21st. Three investment analysts have rated the stock with a sell rating, eleven have given a hold rating and nine have given a buy rating to the company’s stock. According to data from MarketBeat, Texas Instruments currently has an average rating of “Hold” and a consensus price target of $206.95.

Insider Activity at Texas Instruments

In other Texas Instruments news, CAO Julie C. Knecht sold 7,764 shares of the firm’s stock in a transaction that occurred on Friday, August 23rd. The shares were sold at an average price of $209.49, for a total value of $1,626,480.36. Following the completion of the sale, the chief accounting officer now directly owns 11,806 shares in the company, valued at $2,473,238.94. This trade represents a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. In other Texas Instruments news, VP Shanon J. Leonard sold 2,816 shares of the firm’s stock in a transaction that occurred on Friday, August 23rd. The shares were sold at an average price of $208.91, for a total value of $588,290.56. Following the completion of the sale, the vice president now directly owns 24,112 shares in the company, valued at $5,037,237.92. This trade represents a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CAO Julie C. Knecht sold 7,764 shares of Texas Instruments stock in a transaction on Friday, August 23rd. The stock was sold at an average price of $209.49, for a total transaction of $1,626,480.36. Following the sale, the chief accounting officer now owns 11,806 shares of the company’s stock, valued at $2,473,238.94. The trade was a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 15,558 shares of company stock valued at $3,255,323 over the last ninety days. 0.68% of the stock is owned by company insiders.

Institutional Investors Weigh In On Texas Instruments

Institutional investors and hedge funds have recently made changes to their positions in the stock. Skandinaviska Enskilda Banken AB publ lifted its stake in shares of Texas Instruments by 4.3% during the second quarter. Skandinaviska Enskilda Banken AB publ now owns 234,232 shares of the semiconductor company’s stock worth $45,535,000 after buying an additional 9,608 shares during the period. Nordea Investment Management AB lifted its position in Texas Instruments by 16.9% during the first quarter. Nordea Investment Management AB now owns 1,005,547 shares of the semiconductor company’s stock valued at $175,538,000 after purchasing an additional 145,328 shares during the period. BRITISH COLUMBIA INVESTMENT MANAGEMENT Corp lifted its position in Texas Instruments by 60.2% during the second quarter. BRITISH COLUMBIA INVESTMENT MANAGEMENT Corp now owns 174,310 shares of the semiconductor company’s stock valued at $33,909,000 after purchasing an additional 65,512 shares during the period. Advisors Capital Management LLC lifted its position in Texas Instruments by 185.7% during the first quarter. Advisors Capital Management LLC now owns 316,421 shares of the semiconductor company’s stock valued at $55,124,000 after purchasing an additional 205,676 shares during the period. Finally, Healthcare of Ontario Pension Plan Trust Fund lifted its position in Texas Instruments by 454.5% during the second quarter. Healthcare of Ontario Pension Plan Trust Fund now owns 1,256,289 shares of the semiconductor company’s stock valued at $244,386,000 after purchasing an additional 1,029,741 shares during the period. 84.99% of the stock is currently owned by institutional investors and hedge funds.

Texas Instruments Stock Up 4.0 %

The company has a market capitalization of $184.20 billion, a price-to-earnings ratio of 35.02, a P/E/G ratio of 4.32 and a beta of 0.98. The business’s 50-day moving average is $203.43 and its 200-day moving average is $194.99. The company has a quick ratio of 3.49, a current ratio of 4.62 and a debt-to-equity ratio of 0.75.

Texas Instruments Company Profile

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.