Investors Buy Texas Instruments (TXN) on Weakness

Traders purchased shares of Texas Instruments Incorporated (NASDAQ:TXN) on weakness during trading on Friday. $162.71 million flowed into the stock on the tick-up and $100.21 million flowed out of the stock on the tick-down, for a money net flow of $62.50 million into the stock. Of all stocks tracked, Texas Instruments had the 27th highest net in-flow for the day. Texas Instruments traded down ($2.38) for the day and closed at $96.10

Several equities research analysts have weighed in on TXN shares. JPMorgan Chase & Co. dropped their price objective on Texas Instruments from $134.00 to $120.00 and set an “overweight” rating for the company in a report on Wednesday, October 24th. B. Riley dropped their price objective on Texas Instruments from $123.00 to $110.00 and set a “neutral” rating for the company in a report on Monday, October 22nd. Royal Bank of Canada lowered their target price on Texas Instruments to $120.00 and set an “outperform” rating for the company in a research note on Wednesday, October 24th. Zacks Investment Research cut Texas Instruments from a “hold” rating to a “sell” rating in a research note on Thursday, September 27th. Finally, Bank of America raised their target price on Texas Instruments from $138.00 to $140.00 and gave the company a “buy” rating in a research note on Wednesday, July 25th. Two investment analysts have rated the stock with a sell rating, fourteen have assigned a hold rating and sixteen have given a buy rating to the company’s stock. The company currently has an average rating of “Hold” and a consensus target price of $117.11.

The company has a debt-to-equity ratio of 0.41, a current ratio of 3.97 and a quick ratio of 3.09. The stock has a market cap of $93.31 billion, a price-to-earnings ratio of 22.45, a P/E/G ratio of 1.89 and a beta of 1.28.

Texas Instruments (NASDAQ:TXN) last posted its quarterly earnings data on Tuesday, October 23rd. The semiconductor company reported $1.58 earnings per share for the quarter, beating the Zacks’ consensus estimate of $1.53 by $0.05. Texas Instruments had a return on equity of 50.03% and a net margin of 29.62%. The company had revenue of $4.26 billion during the quarter, compared to analyst estimates of $4.30 billion. During the same quarter last year, the company earned $1.26 EPS. The firm’s revenue for the quarter was up 3.5% on a year-over-year basis. On average, equities analysts predict that Texas Instruments Incorporated will post 5.42 earnings per share for the current 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 given a dividend of $0.77 per share. This represents a $3.08 dividend on an annualized basis and a yield of 3.20%. The ex-dividend date of this dividend is Tuesday, October 30th. This is a positive change from Texas Instruments’s previous quarterly dividend of $0.62. Texas Instruments’s dividend payout ratio (DPR) is 71.96%.

Texas Instruments declared that its board has authorized a share buyback plan on Thursday, September 20th that authorizes the company to buyback $12.00 billion in shares. This buyback authorization authorizes the semiconductor company to reacquire up to 11.2% of its shares through open market purchases. Shares buyback plans are generally an indication that the company’s leadership believes its shares are undervalued.

In related news, Director Martin S. Craighead acquired 10,900 shares of Texas Instruments stock in a transaction that occurred on Thursday, October 25th. The stock was bought at an average price of $91.70 per share, with a total value of $999,530.00. Following the transaction, the director now directly owns 13,100 shares in the company, valued at $1,201,270. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Kyle M. Flessner sold 16,088 shares of Texas Instruments stock in a transaction on Wednesday, October 31st. The stock was sold at an average price of $94.00, for a total value of $1,512,272.00. Following the completion of the sale, the insider now directly owns 43,270 shares of the company’s stock, valued at approximately $4,067,380. The disclosure for this sale can be found here. 0.84% of the stock is owned by company insiders.

Institutional investors have recently bought and sold shares of the business. Bank of Hawaii grew its holdings in shares of Texas Instruments by 14.0% in the third quarter. Bank of Hawaii now owns 34,610 shares of the semiconductor company’s stock worth $3,713,000 after acquiring an additional 4,247 shares during the period. BBT Capital Management LLC bought a new stake in shares of Texas Instruments in the third quarter worth $1,087,000. San Francisco Sentry Investment Group CA grew its holdings in shares of Texas Instruments by 12.9% in the third quarter. San Francisco Sentry Investment Group CA now owns 8,155 shares of the semiconductor company’s stock worth $875,000 after acquiring an additional 931 shares during the period. Johnson Financial Group Inc. grew its holdings in shares of Texas Instruments by 162.2% in the third quarter. Johnson Financial Group Inc. now owns 10,539 shares of the semiconductor company’s stock worth $1,131,000 after acquiring an additional 6,520 shares during the period. Finally, Vantage Investment Advisors LLC grew its holdings in shares of Texas Instruments by 17,842.9% in the third quarter. Vantage Investment Advisors LLC now owns 43,960 shares of the semiconductor company’s stock worth $4,688,000 after acquiring an additional 43,715 shares during the period. 84.41% of the stock is owned by institutional investors and hedge funds.

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About Texas Instruments (NASDAQ:TXN)

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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