Texas Instruments (NASDAQ:TXN) Shares Gap Up on Strong Earnings

Texas Instruments Incorporated (NASDAQ:TXN)’s stock price gapped up prior to trading on Wednesday after the company announced better than expected quarterly earnings. 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 traded.

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 35.54% and a net margin of 35.16%. The firm had revenue of $3.66 billion during the quarter, compared to analysts’ expectations of $3.61 billion. During the same period in the prior year, the firm posted $1.85 earnings per share. The business’s quarterly revenue was down 16.4% compared to the same quarter last year.

Texas Instruments Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, May 21st. Shareholders of record on Wednesday, May 8th will be paid a $1.30 dividend. This represents a $5.20 annualized dividend and a yield of 2.97%. Texas Instruments’s dividend payout ratio is 81.12%.

Wall Street Analysts Forecast Growth

Several analysts have issued reports on TXN shares. Evercore ISI upped their price objective on Texas Instruments from $213.00 to $225.00 and gave the company an “outperform” rating in a research note 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 note on Wednesday. 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 note on Wednesday. Cantor Fitzgerald reiterated a “neutral” rating and set a $180.00 target price on shares of Texas Instruments in a research note on Wednesday. Finally, Morgan Stanley increased their target price on Texas Instruments from $138.00 to $146.00 and gave the stock an “underweight” rating in a research note on Wednesday, January 24th. Three equities research analysts have rated the stock with a sell rating, eleven have assigned a hold rating and seven have assigned a buy rating to the company. According to MarketBeat.com, Texas Instruments has an average rating of “Hold” and a consensus target price of $180.74.

Insider Activity at Texas Instruments

In related news, Director Mark A. Blinn sold 1,744 shares of the firm’s stock in a transaction on Wednesday, January 31st. The stock was sold at an average price of $159.85, for a total transaction of $278,778.40. Following the sale, the director now owns 11,693 shares of the company’s stock, valued at approximately $1,869,126.05. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. 0.68% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Norges Bank bought a new position in shares of Texas Instruments in the 4th quarter worth about $1,649,592,000. Morgan Stanley raised its position in shares of Texas Instruments by 14.2% in the 3rd quarter. Morgan Stanley now owns 14,154,358 shares of the semiconductor company’s stock worth $2,250,685,000 after acquiring an additional 1,755,582 shares in the last quarter. California Public Employees Retirement System raised its position in shares of Texas Instruments by 33.2% in the 4th quarter. California Public Employees Retirement System now owns 6,035,704 shares of the semiconductor company’s stock worth $1,028,846,000 after acquiring an additional 1,502,989 shares in the last quarter. Assenagon Asset Management S.A. raised its position in shares of Texas Instruments by 565.4% in the 4th quarter. Assenagon Asset Management S.A. now owns 1,693,577 shares of the semiconductor company’s stock worth $288,687,000 after acquiring an additional 1,439,066 shares in the last quarter. Finally, Baillie Gifford & Co. raised its position in shares of Texas Instruments by 338.4% in the 4th quarter. Baillie Gifford & Co. now owns 1,795,191 shares of the semiconductor company’s stock worth $306,008,000 after acquiring an additional 1,385,725 shares in the last quarter. 84.99% of the stock is owned by institutional investors and hedge funds.

Texas Instruments Stock Performance

The stock has a market capitalization of $159.49 billion, a P/E ratio of 27.34, a price-to-earnings-growth ratio of 3.56 and a beta of 1.04. The company has a 50-day moving average price of $168.95 and a two-hundred day moving average price of $162.08. The company has a current ratio of 4.55, a quick ratio of 3.35 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.