Texas Instruments Incorporated (NASDAQ:TXN) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a note issued to investors on Tuesday, October 17th.
According to Zacks, “Texas Instruments is one of the largest suppliers of analog integrated circuits. We expect margin expansion to continue driven by the secular strength in the auto and industrial markets, a stronger mix of analog and embedded processing products, benefits of restructuring initiatives and more than 300mm capacity coming online. Moreover, the recently announced 24% dividend hike and an additional $6 billion share buyback reflects the company's solid cash flow generation ability and balance sheet strength. The only negative at this point appears to be intensifying competition particularly for auto chips, given recent market consolidation. There is also the question of negative currency effect and a high debt load. Notably, the stock has underperformed the industry on a year-to-date basis.”
A number of other research analysts have also commented on the company. BMO Capital Markets reissued an “outperform” rating on shares of Texas Instruments in a report on Tuesday, September 12th. BidaskClub raised Texas Instruments from a “buy” rating to a “strong-buy” rating in a report on Saturday, September 2nd. Jefferies Group LLC reaffirmed a “buy” rating on shares of Texas Instruments in a report on Monday, July 10th. Barclays PLC lowered their target price on Texas Instruments from $78.00 to $83.00 in a report on Wednesday, July 26th. Finally, Citigroup Inc. raised their target price on Texas Instruments from $87.00 to $97.00 and gave the company a “buy” rating in a report on Wednesday, July 26th. One research analyst has rated the stock with a sell rating, fifteen have assigned a hold rating, thirteen have assigned a buy rating and three have given a strong buy rating to the company. The company has a consensus rating of “Buy” and an average target price of $93.85.
Shares of Texas Instruments (NASDAQ TXN) opened at 97.50 on Tuesday. Texas Instruments has a one year low of $66.80 and a one year high of $97.56. The company has a 50-day moving average of $89.23 and a 200 day moving average of $82.77. The firm has a market cap of $96.53 billion, a PE ratio of 24.39 and a beta of 1.24.
Texas Instruments (NASDAQ:TXN) last issued its quarterly earnings data on Tuesday, October 24th. The semiconductor company reported $1.26 EPS for the quarter, beating the Zacks’ consensus estimate of $1.12 by $0.14. The business had revenue of $4.12 billion for the quarter, compared to analyst estimates of $3.91 billion. Texas Instruments had a return on equity of 38.88% and a net margin of 29.98%. The firm’s revenue for the quarter was up 12.0% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.94 EPS. On average, equities research analysts expect that Texas Instruments will post $4.14 EPS for the current fiscal year.
Texas Instruments declared that its board has initiated a share repurchase plan on Thursday, September 21st that allows the company to repurchase $6.00 billion in shares. This repurchase authorization allows the semiconductor company to purchase up to 74% of its shares through open market purchases. Shares repurchase plans are usually an indication that the company’s management believes its shares are undervalued.
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In other news, insider Ellen Barker sold 15,000 shares of the business’s stock in a transaction dated Monday, August 14th. The stock was sold at an average price of $81.87, for a total value of $1,228,050.00. Following the sale, the insider now directly owns 45,697 shares in the company, valued at $3,741,213.39. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, insider Kevin J. Ritchie sold 105,396 shares of the business’s stock in a transaction dated Tuesday, August 15th. The shares were sold at an average price of $81.91, for a total value of $8,632,986.36. Following the completion of the sale, the insider now owns 252,257 shares in the company, valued at $20,662,370.87. The disclosure for this sale can be found here. Over the last three months, insiders sold 197,301 shares of company stock valued at $16,107,756. Insiders own 0.96% of the company’s stock.
A number of institutional investors and hedge funds have recently added to or reduced their stakes in TXN. American Beacon Advisors Inc. bought a new stake in Texas Instruments during the first quarter worth about $101,000. Patriot Financial Group Insurance Agency LLC raised its holdings in Texas Instruments by 18.4% during the second quarter. Patriot Financial Group Insurance Agency LLC now owns 1,287 shares of the semiconductor company’s stock worth $101,000 after acquiring an additional 200 shares in the last quarter. MV Capital Management Inc. raised its holdings in Texas Instruments by 7.6% during the second quarter. MV Capital Management Inc. now owns 1,324 shares of the semiconductor company’s stock worth $102,000 after acquiring an additional 93 shares in the last quarter. ClariVest Asset Management LLC raised its holdings in Texas Instruments by 8.4% during the first quarter. ClariVest Asset Management LLC now owns 1,296 shares of the semiconductor company’s stock worth $104,000 after acquiring an additional 100 shares in the last quarter. Finally, Balentine LLC raised its holdings in Texas Instruments by 6.5% during the first quarter. Balentine LLC now owns 1,320 shares of the semiconductor company’s stock worth $106,000 after acquiring an additional 80 shares in the last quarter. Institutional investors and hedge funds own 83.63% of the company’s stock.
Texas Instruments Company Profile
Texas Instruments Incorporated designs, makes and sells semiconductors to electronics designers and manufacturers across the world. The Company operates through two segments: Analog and Embedded Processing. As of December 31, 2016, the Company had design, manufacturing or sales operations in more than 30 countries.
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