Zacks Investment Research Downgrades Texas Instruments Inc. (TXN) to Hold
Texas Instruments Inc. (NASDAQ:TXN) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued to investors on Wednesday.
According to Zacks, “Texas Instruments is one of the largest suppliers of analog integrated circuits. The company’s second-quarter results exceeded the Zacks Consensus Estimate. Margins expanded and should continue to expand because of the secular strength in the auto and industrial markets, a stronger mix of analog and embedded processing products, benefits of restructuring actions and more 300mm capacity coming online. The only negatives at this point appear to be strengthening competition particularly for auto chips given recent market consolidation. There is also the question of negative currency effect and a high debt load.”
Several other brokerages also recently weighed in on TXN. Credit Suisse Group AG restated a “neutral” rating and set a $77.00 price target (up previously from $65.00) on shares of Texas Instruments in a report on Wednesday, July 27th. Royal Bank Of Canada upped their price target on Texas Instruments from $75.00 to $80.00 and gave the stock an “outperform” rating in a report on Monday, August 22nd. RBC Capital Markets restated an “outperform” rating and set a $80.00 price target (up previously from $75.00) on shares of Texas Instruments in a report on Monday, August 22nd. B. Riley upgraded Texas Instruments from a “neutral” rating to a “buy” rating in a report on Friday, September 30th. Finally, Exane BNP Paribas upgraded Texas Instruments from an “underperform” rating to a “neutral” rating in a report on Friday, August 5th. Two analysts have rated the stock with a sell rating, fourteen have issued a hold rating and fifteen have issued a buy rating to the stock. The company presently has an average rating of “Hold” and an average price target of $69.32.
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Texas Instruments (NASDAQ:TXN) traded up 0.209% during midday trading on Wednesday, hitting $69.395. The company had a trading volume of 3,151,805 shares. The firm has a 50-day moving average price of $69.21 and a 200-day moving average price of $64.33. The company has a market cap of $69.62 billion, a price-to-earnings ratio of 23.381 and a beta of 1.32. Texas Instruments has a 12 month low of $46.73 and a 12 month high of $72.58.
Texas Instruments (NASDAQ:TXN) last issued its quarterly earnings results on Monday, July 25th. The company reported $0.76 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $0.73 by $0.03. Texas Instruments had a return on equity of 30.14% and a net margin of 23.89%. The company had revenue of $3.27 billion for the quarter, compared to the consensus estimate of $3.20 billion. During the same quarter in the prior year, the business earned $0.65 EPS. Texas Instruments’s revenue was up 1.3% on a year-over-year basis. Equities analysts anticipate that Texas Instruments will post $3.06 EPS for the current year.
In other news, insider Bing Xie sold 11,565 shares of the stock in a transaction that occurred on Tuesday, August 2nd. The stock was sold at an average price of $69.12, for a total transaction of $799,372.80. Following the completion of the transaction, the insider now directly owns 187,370 shares of the company’s stock, valued at approximately $12,951,014.40. The sale was disclosed in a document filed with the SEC, which is accessible through this link. Also, insider Stephen A. Anderson sold 103,125 shares of the stock in a transaction that occurred on Monday, August 8th. The stock was sold at an average price of $70.08, for a total value of $7,227,000.00. Following the transaction, the insider now directly owns 292,446 shares of the company’s stock, valued at $20,494,615.68. The disclosure for this sale can be found here. Insiders own 1.02% of the company’s stock.
Institutional investors have recently modified their holdings of the company. Parkside Financial Bank & Trust increased its position in Texas Instruments by 7.8% in the second quarter. Parkside Financial Bank & Trust now owns 1,723 shares of the company’s stock valued at $108,000 after buying an additional 125 shares during the last quarter. Hudock Capital Group LLC increased its position in Texas Instruments by 0.4% in the second quarter. Hudock Capital Group LLC now owns 1,957 shares of the company’s stock valued at $122,000 after buying an additional 7 shares during the last quarter. Tradewinds Capital Management LLC increased its position in Texas Instruments by 0.4% in the second quarter. Tradewinds Capital Management LLC now owns 1,966 shares of the company’s stock valued at $123,000 after buying an additional 7 shares during the last quarter. Tortoise Investment Management LLC purchased a new position in Texas Instruments during the second quarter valued at $125,000. Finally, Advisory Services Network LLC increased its position in Texas Instruments by 1.8% in the second quarter. Advisory Services Network LLC now owns 2,221 shares of the company’s stock valued at $139,000 after buying an additional 40 shares during the last quarter. 86.92% of the stock is owned by institutional investors and hedge funds.
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. Its Analog segment’s product line includes High Volume Analog & Logic (HVAL), Power Management (Power), High Performance Analog (HPA) and Silicon Valley Analog (SVA).
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