Texas Instruments (NASDAQ:TXN) Shares Gap Up Following Better-Than-Expected Earnings

Texas Instruments Incorporated (NASDAQ:TXN) shares gapped up prior to trading on Wednesday following a better than expected earnings announcement. The stock had previously closed at $165.47, but opened at $178.23. Texas Instruments shares last traded at $176.19, with a volume of 3,663,140 shares changing hands.

The semiconductor company reported $1.20 EPS for the quarter, beating the consensus estimate of $1.07 by $0.13. The company had revenue of $3.66 billion during the quarter, compared to analysts’ expectations of $3.61 billion. Texas Instruments had a net margin of 37.16% and a return on equity of 39.96%. The business’s revenue for the quarter was down 16.4% compared to the same quarter last year. During the same quarter in the previous year, the company posted $1.85 EPS.

Analyst Upgrades and Downgrades

TXN has been the subject of several research analyst reports. Mizuho boosted their price target on shares of Texas Instruments from $164.00 to $170.00 and gave the company a “neutral” rating in a report on Wednesday. Stifel Nicolaus boosted their price target on shares of Texas Instruments from $160.00 to $172.00 and gave the company a “hold” rating in a report on Wednesday. KeyCorp boosted their price target on shares of Texas Instruments from $180.00 to $200.00 and gave the company an “overweight” rating in a report on Wednesday, January 24th. Cantor Fitzgerald reissued a “neutral” rating and issued a $180.00 price target on shares of Texas Instruments in a report on Wednesday. Finally, Rosenblatt Securities reissued a “buy” rating and issued a $210.00 price target on shares of Texas Instruments in a report on Wednesday. Three investment analysts have rated the stock with a sell rating, ten have issued a hold rating and seven have issued a buy rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus price target of $181.06.

Insider Transactions at Texas Instruments

In other news, Director Mark A. Blinn sold 1,744 shares of the stock in a transaction dated Wednesday, January 31st. The shares were sold at an average price of $159.85, for a total transaction of $278,778.40. Following the completion of the transaction, the director now directly owns 11,693 shares in the company, valued at approximately $1,869,126.05. The transaction was disclosed in a document filed with the SEC, which is available at this link. Company insiders own 0.68% of the company’s stock.

Institutional Investors Weigh In On Texas Instruments

A number of institutional investors and hedge funds have recently modified their holdings of TXN. Annapolis Financial Services LLC raised its holdings in shares of Texas Instruments by 333.3% in the 3rd quarter. Annapolis Financial Services LLC now owns 156 shares of the semiconductor company’s stock valued at $25,000 after purchasing an additional 120 shares during the period. Briaud Financial Planning Inc bought a new stake in shares of Texas Instruments in the 3rd quarter valued at about $25,000. Tennessee Valley Asset Management Partners bought a new stake in shares of Texas Instruments in the 4th quarter valued at about $25,000. Life Planning Partners Inc bought a new stake in shares of Texas Instruments in the 4th quarter valued at about $26,000. Finally, Richardson Financial Services Inc. bought a new position in Texas Instruments in the 4th quarter valued at about $26,000. 84.99% of the stock is owned by institutional investors.

Texas Instruments Stock Performance

The stock has a market capitalization of $159.09 billion, a P/E ratio of 24.76, a PEG ratio of 3.52 and a beta of 1.04. The company has a debt-to-equity ratio of 0.63, a quick ratio of 3.35 and a current ratio of 4.55. The company’s fifty day simple moving average is $168.66 and its two-hundred day simple moving average is $161.99.

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.