Investors Buy Shares of Texas Instruments Incorporated (TXN) on Weakness

Traders purchased shares of Texas Instruments Incorporated (NASDAQ:TXN) on weakness during trading on Tuesday. $74.12 million flowed into the stock on the tick-up and $42.64 million flowed out of the stock on the tick-down, for a money net flow of $31.48 million into the stock. Of all stocks tracked, Texas Instruments had the 25th highest net in-flow for the day. Texas Instruments traded down ($0.07) for the day and closed at $96.96

A number of brokerages recently commented on TXN. Drexel Hamilton reaffirmed a “buy” rating and set a $110.00 price target (up from $95.00) on shares of Texas Instruments in a research report on Wednesday, October 25th. Credit Suisse Group reaffirmed an “outperform” rating and set a $110.00 price target (up from $95.00) on shares of Texas Instruments in a research report on Wednesday, October 25th. Loop Capital reaffirmed a “hold” rating and set a $102.00 price target (up from $90.00) on shares of Texas Instruments in a research report on Wednesday, October 25th. Stifel Nicolaus reaffirmed a “hold” rating and set a $98.00 price target (up from $85.00) on shares of Texas Instruments in a research report on Wednesday, October 25th. Finally, SunTrust Banks, Inc. reaffirmed a “hold” rating and set a $96.00 price target on shares of Texas Instruments in a research report on Wednesday, October 25th. One equities research analyst has rated the stock with a sell rating, fifteen have assigned a hold rating, thirteen have given a buy rating and three have issued a strong buy rating to the company’s stock. The company currently has a consensus rating of “Buy” and a consensus price target of $93.85.

The company has a current ratio of 3.89, a quick ratio of 2.96 and a debt-to-equity ratio of 0.28. The stock has a market capitalization of $95,560.00, a PE ratio of 23.88, a price-to-earnings-growth ratio of 2.33 and a beta of 1.28.

Texas Instruments (NASDAQ:TXN) last released its quarterly earnings results on Tuesday, October 24th. The semiconductor company reported $1.26 earnings per share for the quarter, beating the Zacks’ consensus estimate of $1.12 by $0.14. Texas Instruments had a return on equity of 38.88% and a net margin of 29.98%. The business had revenue of $4.12 billion for the quarter, compared to the consensus estimate of $3.91 billion. During the same quarter last year, the business posted $0.94 earnings per share. The company’s revenue for the quarter was up 12.0% on a year-over-year basis. analysts expect that Texas Instruments Incorporated will post 4.33 earnings per share for the current year.

The company also recently declared a quarterly dividend, which was paid on Monday, November 13th. Shareholders of record on Tuesday, October 31st were given a dividend of $0.62 per share. This is an increase from Texas Instruments’s previous quarterly dividend of $0.50. The ex-dividend date was Monday, October 30th. This represents a $2.48 dividend on an annualized basis and a yield of 2.56%. Texas Instruments’s dividend payout ratio (DPR) is presently 56.49%.

Texas Instruments announced that its board has authorized a share buyback plan on Thursday, September 21st that permits the company to buyback $6.00 billion in outstanding shares. This buyback authorization permits the semiconductor company to reacquire up to 74% of its stock through open market purchases. Stock buyback plans are typically a sign that the company’s leadership believes its stock is undervalued.

In other news, Chairman Richard K. Templeton sold 450,000 shares of Texas Instruments stock in a transaction dated Monday, October 30th. The stock was sold at an average price of $96.51, for a total value of $43,429,500.00. Following the transaction, the chairman now owns 1,137,056 shares in the company, valued at $109,737,274.56. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. Also, VP Darla H. Whitaker sold 118,799 shares of Texas Instruments stock in a transaction dated Thursday, October 26th. The stock was sold at an average price of $96.24, for a total value of $11,433,215.76. Following the completion of the transaction, the vice president now owns 123,993 shares in the company, valued at approximately $11,933,086.32. The disclosure for this sale can be found here. Insiders have sold 1,362,293 shares of company stock worth $131,754,396 in the last 90 days. Company insiders own 0.96% of the company’s stock.

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Vanguard Group Inc. increased its holdings in shares of Texas Instruments by 2.1% in the second quarter. Vanguard Group Inc. now owns 81,330,150 shares of the semiconductor company’s stock worth $6,256,728,000 after buying an additional 1,683,613 shares during the period. BlackRock Inc. increased its holdings in shares of Texas Instruments by 1.1% in the second quarter. BlackRock Inc. now owns 65,400,461 shares of the semiconductor company’s stock worth $5,031,257,000 after buying an additional 681,821 shares during the period. State Street Corp increased its holdings in shares of Texas Instruments by 1.4% in the first quarter. State Street Corp now owns 40,943,910 shares of the semiconductor company’s stock worth $3,298,445,000 after buying an additional 573,645 shares during the period. Capital International Investors increased its holdings in shares of Texas Instruments by 3.0% in the third quarter. Capital International Investors now owns 14,794,402 shares of the semiconductor company’s stock worth $1,326,170,000 after buying an additional 435,938 shares during the period. Finally, Janus Henderson Group PLC increased its holdings in shares of Texas Instruments by 16.5% in the third quarter. Janus Henderson Group PLC now owns 14,482,401 shares of the semiconductor company’s stock worth $1,298,212,000 after buying an additional 2,055,040 shares during the period. Hedge funds and other institutional investors own 84.22% of the company’s stock.

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About Texas Instruments

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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