Texas Instruments (NASDAQ:TXN) Shares Gap Up Following Earnings Beat

Texas Instruments Incorporated (NASDAQ:TXN) shares gapped up before the market opened 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 traded.

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

Texas Instruments Increases Dividend

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

Analysts Set New Price Targets

TXN has been the topic of a number of recent research reports. Deutsche Bank Aktiengesellschaft raised their price objective on shares of Texas Instruments from $160.00 to $185.00 and gave the company a “hold” rating in a research note on Wednesday, July 24th. Summit Insights raised Texas Instruments from a “hold” rating to a “buy” rating in a research note on Wednesday. Stifel Nicolaus boosted their target price on Texas Instruments from $172.00 to $200.00 and gave the stock a “hold” rating in a research report on Thursday, July 18th. KeyCorp lifted their price objective on shares of Texas Instruments from $200.00 to $250.00 and gave the stock an “overweight” rating in a research note on Wednesday, July 24th. Finally, The Goldman Sachs Group upped their target price on shares of Texas Instruments from $157.00 to $176.00 and gave the company a “sell” rating in a research note on Wednesday, July 24th. Three investment analysts have rated the stock with a sell rating, ten have assigned a hold rating and nine have issued a buy rating to the company’s stock. Based on data from MarketBeat.com, Texas Instruments presently has a consensus rating of “Hold” and an average price target of $206.95.

Insider Buying and Selling

In related news, CEO Haviv Ilan sold 1,200 shares of Texas Instruments stock in a transaction that occurred on Monday, August 26th. The stock was sold at an average price of $209.44, for a total value of $251,328.00. Following the transaction, the chief executive officer now directly owns 158,676 shares of the company’s stock, valued at $33,233,101.44. The trade was a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. In other news, CEO Haviv Ilan sold 1,200 shares of the business’s stock in a transaction dated Monday, August 26th. The stock was sold at an average price of $209.44, for a total value of $251,328.00. Following the transaction, the chief executive officer now directly owns 158,676 shares of the company’s stock, valued at $33,233,101.44. The trade was a 0.00 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, VP Mohammad Yunus sold 3,778 shares of Texas Instruments stock in a transaction on Monday, August 26th. The shares were sold at an average price of $208.90, for a total transaction of $789,224.20. Following the completion of the sale, the vice president now owns 28,894 shares of the company’s stock, valued at $6,035,956.60. This represents a 0.00 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 15,558 shares of company stock worth $3,255,323 in the last ninety days. Company insiders own 0.68% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in TXN. Vanguard Group Inc. grew its stake in shares of Texas Instruments by 0.6% during the 1st quarter. Vanguard Group Inc. now owns 90,572,576 shares of the semiconductor company’s stock worth $15,778,648,000 after acquiring an additional 536,206 shares during the period. Capital Research Global Investors boosted its holdings in Texas Instruments by 4.7% in the 1st quarter. Capital Research Global Investors now owns 28,715,467 shares of the semiconductor company’s stock valued at $5,002,522,000 after purchasing an additional 1,279,828 shares during the period. Legal & General Group Plc lifted its position in Texas Instruments by 0.8% during the second quarter. Legal & General Group Plc now owns 7,831,270 shares of the semiconductor company’s stock valued at $1,523,415,000 after purchasing an additional 64,067 shares during the last quarter. Van ECK Associates Corp raised its holdings in shares of Texas Instruments by 6.2% during the 2nd quarter. Van ECK Associates Corp now owns 5,955,353 shares of the semiconductor company’s stock valued at $1,158,495,000 after buying an additional 348,528 shares in the last quarter. Finally, Fayez Sarofim & Co lifted its holdings in shares of Texas Instruments by 2.5% in the 1st quarter. Fayez Sarofim & Co now owns 4,271,960 shares of the semiconductor company’s stock worth $744,218,000 after acquiring an additional 104,806 shares during the last quarter. 84.99% of the stock is currently owned by hedge funds and other institutional investors.

Texas Instruments Stock Performance

The company has a quick ratio of 3.49, a current ratio of 4.62 and a debt-to-equity ratio of 0.75. The company has a fifty day moving average price of $203.31 and a 200 day moving average price of $194.94. The stock has a market cap of $183.80 billion, a PE ratio of 34.55, a P/E/G ratio of 4.32 and a beta of 0.98.

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.