Texas Instruments Incorporated (TXN) Cut to Hold at Zacks Investment Research
Texas Instruments Incorporated (NASDAQ:TXN) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued to investors on Tuesday.
According to Zacks, “Texas Instruments is one of the largest suppliers of analog integrated circuits. We expect margin expansion to continue driven by the secular strength in the auto and industrial markets, a stronger mix of analog and embedded processing products, benefits of restructuring initiatives and more than 300mm capacity coming online. Moreover, the recently announced 24% dividend hike and an additional $6 billion share buyback reflects the company's solid cash flow generation ability and balance sheet strength. The only negative at this point appears to be intensifying competition particularly for auto chips, given recent market consolidation. There is also the question of negative currency effect and a high debt load. Notably, the stock has underperformed the industry on a year-to-date basis.”
TXN has been the topic of several other reports. BidaskClub upgraded Texas Instruments from a “buy” rating to a “strong-buy” rating in a research report on Saturday, September 2nd. Royal Bank Of Canada raised their price target on Texas Instruments from $95.00 to $96.00 and gave the stock an “outperform” rating in a research report on Wednesday, July 26th. Stifel Nicolaus restated a “hold” rating and set a $85.00 price target on shares of Texas Instruments in a research report on Wednesday, October 4th. SunTrust Banks, Inc. restated a “hold” rating and set a $86.00 price target on shares of Texas Instruments in a research report on Thursday, October 12th. Finally, Jefferies Group LLC restated a “buy” rating and set a $96.00 price target on shares of Texas Instruments in a research report on Monday, September 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 two have assigned a strong buy rating to the stock. Texas Instruments currently has a consensus rating of “Buy” and a consensus target price of $86.51.
Shares of Texas Instruments (TXN) traded down 0.354% during mid-day trading on Tuesday, reaching $93.896. The company had a trading volume of 623,590 shares. Texas Instruments has a 12-month low of $66.80 and a 12-month high of $94.23. The stock has a 50 day moving average price of $86.61 and a 200 day moving average price of $81.95. The firm has a market capitalization of $92.96 billion, a PE ratio of 23.486 and a beta of 1.24.
Texas Instruments (NASDAQ:TXN) last posted its quarterly earnings results on Tuesday, July 25th. The semiconductor company reported $1.03 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.96 by $0.07. Texas Instruments had a return on equity of 36.52% and a net margin of 28.68%. The business had revenue of $3.69 billion for the quarter, compared to analyst estimates of $3.57 billion. During the same period last year, the company earned $0.76 EPS. Texas Instruments’s revenue for the quarter was up 12.8% compared to the same quarter last year. On average, equities analysts forecast that Texas Instruments will post $4.13 earnings per share for the current year.
Texas Instruments declared that its board has authorized a stock buyback program on Thursday, September 21st that allows the company to repurchase $6.00 billion in shares. This repurchase authorization allows the semiconductor company to buy up to 74% of its stock through open market purchases. Stock repurchase programs are usually a sign that the company’s board of directors believes its shares are undervalued.
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In other news, Director Carrie Smith Cox sold 14,000 shares of the business’s stock in a transaction on Thursday, July 27th. The stock was sold at an average price of $82.25, for a total value of $1,151,500.00. Following the completion of the transaction, the director now owns 38,435 shares in the company, valued at $3,161,278.75. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Kevin J. Ritchie sold 105,396 shares of the business’s stock in a transaction on Tuesday, August 15th. The stock was sold at an average price of $81.91, for a total value of $8,632,986.36. Following the completion of the transaction, the insider now owns 252,257 shares of the company’s stock, valued at approximately $20,662,370.87. The disclosure for this sale can be found here. Insiders sold 211,301 shares of company stock valued at $17,259,256 in the last 90 days. Company insiders own 0.96% of the company’s stock.
Hedge funds have recently bought and sold shares of the company. Legal & General Group Plc raised its stake in shares of Texas Instruments by 1.5% in the second quarter. Legal & General Group Plc now owns 5,089,028 shares of the semiconductor company’s stock worth $391,499,000 after purchasing an additional 73,740 shares during the last quarter. 1st Global Advisors Inc. purchased a new position in shares of Texas Instruments in the first quarter worth $406,000. Cullinan Associates Inc. raised its stake in shares of Texas Instruments by 1.3% in the second quarter. Cullinan Associates Inc. now owns 123,800 shares of the semiconductor company’s stock worth $9,524,000 after purchasing an additional 1,575 shares during the last quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS raised its stake in shares of Texas Instruments by 29.4% in the first quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS now owns 74,152 shares of the semiconductor company’s stock worth $5,974,000 after purchasing an additional 16,857 shares during the last quarter. Finally, American International Group Inc. raised its stake in shares of Texas Instruments by 1.6% in the first quarter. American International Group Inc. now owns 471,415 shares of the semiconductor company’s stock worth $37,977,000 after purchasing an additional 7,369 shares during the last quarter. Hedge funds and other institutional investors own 83.66% of the company’s stock.
Texas Instruments Company Profile
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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