Texas Instruments Incorporated $TXN Stock: Verdence Capital Advisors LLC Reduces Stake

Verdence Capital Advisors LLC lessened its position in shares of Texas Instruments Incorporated (NASDAQ:TXN) by 60.5% during the 3rd quarter, HoldingsChannel reports. The fund owned 6,026 shares of the semiconductor company’s stock after selling 9,220 shares during the quarter. Verdence Capital Advisors LLC’s holdings in Texas Instruments were worth $1,688,000 at the end of the most recent quarter.

Several other hedge funds have also added to or reduced their stakes in the company. Scarborough Advisors LLC acquired a new stake in Texas Instruments in the first quarter worth about $29,000. Kilter Group LLC acquired a new position in Texas Instruments during the 2nd quarter valued at about $31,000. Main Street Group LTD bought a new stake in shares of Texas Instruments in the 1st quarter valued at about $32,000. Nvwm LLC raised its position in shares of Texas Instruments by 550.0% in the 3rd quarter. Nvwm LLC now owns 117 shares of the semiconductor company’s stock valued at $33,000 after acquiring an additional 99 shares during the period. Finally, Reyes Financial Architecture Inc. acquired a new stake in shares of Texas Instruments in the 3rd quarter valued at approximately $36,000. Institutional investors own 84.99% of the company’s stock.

Key Texas Instruments News

Here are the key news stories impacting Texas Instruments this week:

• Positive Sentiment: Profitability improved sharply: Third-quarter gross margin rose to 64.2%, versus 57.4% a year earlier and 61.4% in the prior quarter. Higher sales and factory utilization supported stronger profits. TXN’s Gross Margin Crosses 64% in Q3
• Positive Sentiment: Earnings beat expectations: Texas Instruments reported $6.055 billion in third-quarter revenue and $2.62 in diluted EPS, exceeding consensus estimates. Fourth-quarter guidance calls for revenue of $5.8 billion to $6.3 billion and EPS of $2.45 to $2.79. Earnings Beat Might Change Texas Instruments Stock Narrative
• Positive Sentiment: Data-center demand remains supportive: Management indicated demand from data-center customers is continuing to grow, helping offset concerns about cyclical industrial and automotive markets.
• Positive Sentiment: Buying and technical momentum: ETFs purchased approximately $37 million of TXN shares, while upward earnings-estimate revisions and a move above the 20-day moving average have reinforced the bullish narrative. ETFs Bought $37.0 Million of Texas Instruments
• Neutral Sentiment: Analyst stance is mixed: DZ Bank upgraded Texas Instruments from “sell” to “hold” but assigned a $300 price target, below the recent trading level. Bernstein also reportedly initiated or maintained a “hold” view, signaling limited conviction despite the earnings improvement. DZ Bank TXN Rating
• Negative Sentiment: Auto-chip concerns remain a near-term overhang: Soft guidance from NXP Semiconductors pressured automotive-focused chip stocks and weighed on Texas Instruments and other semiconductor peers, despite TXN’s broader industrial and data-center exposure. Auto Chip Concerns Pressure Semiconductor Stocks
• Negative Sentiment: New debt adds financing obligations: Texas Instruments priced $2 billion of senior notes carrying interest rates from 5.0% to 5.75%, increasing leverage and interest costs, although the proceeds may support capital needs and strategic investments. Texas Instruments Prices $2.0 Billion of Notes

Insider Buying and Selling at Texas Instruments

In other news, VP Tsedeniya Abraham sold 7,000 shares of the company’s stock in a transaction dated Thursday, August 27th. The stock was sold at an average price of $264.63, for a total transaction of $1,852,410.00. Following the completion of the transaction, the vice president directly owned 23,181 shares of the company’s stock, valued at $6,134,388.03. This represents a 23.19% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 0.60% of the stock is owned by corporate insiders.

Analysts Set New Price Targets

Several research analysts recently weighed in on the stock. Morgan Stanley lifted their price objective on shares of Texas Instruments from $255.00 to $278.00 and gave the stock an “underweight” rating in a research note on Thursday, October 22nd. Mizuho lowered their target price on shares of Texas Instruments from $305.00 to $290.00 and set a “neutral” rating for the company in a research note on Thursday, October 22nd. Rosenblatt Securities increased their target price on shares of Texas Instruments from $350.00 to $360.00 and gave the stock a “buy” rating in a report on Thursday, October 22nd. Arete Research cut their target price on shares of Texas Instruments from $405.00 to $381.00 and set a “buy” rating on the stock in a report on Thursday, August 20th. Finally, Evercore reissued an “outperform” rating and set a $330.00 price target (up from $316.00) on shares of Texas Instruments in a research report on Thursday, July 23rd. One research analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating, twelve have issued a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $315.37.

Texas Instruments Trading Up 0.3%

TXN opened at $309.83 on Thursday. The stock has a market capitalization of $282.95 billion, a P/E ratio of 40.19, a P/E/G ratio of 1.43 and a beta of 1.35. The company has a current ratio of 5.59, a quick ratio of 4.05 and a debt-to-equity ratio of 0.67. Texas Instruments Incorporated has a 12 month low of $152.73 and a 12 month high of $334.03. The firm’s fifty day simple moving average is $274.05 and its 200 day simple moving average is $257.59.

Texas Instruments (NASDAQ:TXN) last released its earnings results on Wednesday, October 21st. The semiconductor company reported $2.62 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.40 by $0.22. The firm had revenue of $6.05 billion during the quarter, compared to analysts’ expectations of $5.94 billion. Texas Instruments had a return on equity of 40.51% and a net margin of 34.25%. The company’s revenue was up 27.7% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.48 EPS. As a group, research analysts anticipate that Texas Instruments Incorporated will post 8.85 EPS for the current fiscal year.

Texas Instruments Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, November 10th. Stockholders of record on Friday, October 30th will be issued a $1.52 dividend. This represents a $6.08 dividend on an annualized basis and a dividend yield of 2.0%. This is a positive change from Texas Instruments’s previous quarterly dividend of $1.42. The ex-dividend date is Friday, October 30th. Texas Instruments’s dividend payout ratio is presently 73.67%.

Texas Instruments Profile

Texas Instruments Incorporated (NASDAQ:TXN) designs and manufactures analog and embedded semiconductor products used in industrial, automotive, personal electronics, communications equipment, and enterprise systems. Its analog products help manage power, sense and measure real-world signals, and support signal processing, while its embedded processing products provide computing and control functions within electronic systems.

The company offers a broad portfolio of semiconductors, including power-management devices, amplifiers, data converters, microcontrollers, processors, and connectivity products.