Zacks Investment Research downgraded shares of Texas Instruments (NASDAQ:TXN) from a buy rating to a hold rating in a research note released on Tuesday, September 18th.
According to Zacks, “Texas Instruments is currently benefiting from its strength in automotive and industrial end-markets. The company continues to prudently invest its R&D dollars in several high margin, high-growth areas of the analog and embedded processing markets. This is gradually increasing its exposure to industrial and automotive markets, while reducing exposure to volatile consumer/computing markets. Margins are also expanding on a secular trend in these two markets. Further, growing 300-millimeter Analog output are aiding the company’s manufacturing efficiencies. Continous dividend hike is a big positive. However, increasing competition, unfavorable currency effect and a high debt load remain concerns. Notably, the company has underperformed the industry it belongs to on a one year basis.”
Other equities analysts also recently issued research reports about the stock. Sanford C. Bernstein set a $130.00 price objective on shares of Texas Instruments and gave the stock a buy rating in a report on Wednesday, July 25th. Atlantic Securities assumed coverage on shares of Texas Instruments in a report on Tuesday, July 10th. They issued an overweight rating and a $130.00 price objective for the company. B. Riley lifted their price objective on shares of Texas Instruments from $115.00 to $123.00 and gave the stock a neutral rating in a report on Wednesday, July 25th. BidaskClub downgraded shares of Texas Instruments from a sell rating to a strong sell rating in a report on Friday, September 14th. Finally, Jefferies Financial Group reaffirmed a buy rating and issued a $157.00 price objective on shares of Texas Instruments in a report on Wednesday, July 25th. Two research analysts have rated the stock with a sell rating, thirteen have issued a hold rating and fifteen have issued a buy rating to the company. The stock currently has a consensus rating of Hold and a consensus target price of $121.58.
Texas Instruments (NASDAQ:TXN) last released its quarterly earnings data on Tuesday, July 24th. The semiconductor company reported $1.37 EPS for the quarter, topping analysts’ consensus estimates of $1.34 by $0.03. The firm had revenue of $4.02 billion during the quarter, compared to the consensus estimate of $3.96 billion. Texas Instruments had a net margin of 28.08% and a return on equity of 46.80%. The firm’s revenue was up 8.8% on a year-over-year basis. During the same quarter in the previous year, the company posted $1.03 earnings per share. As a group, equities research analysts forecast that Texas Instruments will post 5.49 EPS for the current fiscal year.
The business also recently disclosed a quarterly dividend, which will be paid on Monday, November 19th. Investors of record on Wednesday, October 31st will be issued a $0.77 dividend. The ex-dividend date of this dividend is Tuesday, October 30th. This represents a $3.08 annualized dividend and a yield of 3.05%. This is an increase from Texas Instruments’s previous quarterly dividend of $0.62. Texas Instruments’s dividend payout ratio is presently 57.94%.
Texas Instruments announced that its board has authorized a stock repurchase program on Thursday, September 20th that authorizes the company to repurchase $12.00 billion in shares. This repurchase authorization authorizes the semiconductor company to reacquire up to 11.2% of its shares through open market purchases. Shares repurchase programs are usually a sign that the company’s leadership believes its stock is undervalued.
In related news, insider Stephen A. Anderson sold 25,318 shares of the company’s stock in a transaction dated Tuesday, July 31st. The shares were sold at an average price of $111.55, for a total value of $2,824,222.90. Following the completion of the sale, the insider now owns 131,153 shares of the company’s stock, valued at $14,630,117.15. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Corporate insiders own 0.84% of the company’s stock.
Institutional investors have recently modified their holdings of the business. Kiley Juergens Wealth Management LLC bought a new stake in Texas Instruments in the second quarter worth about $100,000. Centaurus Financial Inc. bought a new stake in Texas Instruments in the second quarter worth about $101,000. Baker Ellis Asset Management LLC bought a new stake in Texas Instruments in the second quarter worth about $105,000. Kwmg LLC bought a new stake in Texas Instruments in the second quarter worth about $107,000. Finally, Livingston Group Asset Management CO operating as Southport Capital Management bought a new stake in Texas Instruments in the third quarter worth about $107,000. Hedge funds and other institutional investors own 84.02% of the company’s stock.
About Texas Instruments
Texas Instruments Incorporated designs, manufactures, and sells semiconductors to electronics designers and manufacturers worldwide. It operates in two segments, Analog and Embedded Processing. The Analog segment offers power products to manage power requirements in various levels using battery management solutions, portable components, power supply controls, point-of-load products, switches and interfaces, integrated protection devices, high-voltage products, and mobile lighting and display products.
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