Texas Instruments (TXN) Downgraded to Hold at Zacks Investment Research

Texas Instruments (NASDAQ:TXN) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued on Monday.

According to Zacks, “Texas Instruments has outperformed the industry it belongs In the past 12 months. The company continues to prudently invest its R&D dollars in several high margin, high-growth areas of the analog and embedded processing markets. This is gradually increasing its exposure to industrial and automotive markets and dollar content at customers, while reducing exposure to volatile consumer/computing markets. Margins continue to expand on secular strength in the auto and industrial markets, a stronger mix of analog and embedded processing products and manufacturing efficiencies that include growing 300-millimeter Analog output. Off late, estimates have remained stable ahead of the company's Q4 earnings release. The company has positive record of earnings surprises in recent quarters. However, increasing competition, unfavorable currency effect and a high debt load remain concerns.”

A number of other brokerages also recently commented on TXN. SunTrust Banks reaffirmed a “hold” rating and set a $96.00 price target 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. B. Riley reaffirmed a “hold” rating and set a $97.00 price target (up from $89.00) on shares of Texas Instruments in a research report on Wednesday, October 25th. Barclays increased their price target on Texas Instruments from $85.00 to $95.00 and gave the company an “equal weight” rating in a research report on Wednesday, October 18th. Finally, Jefferies Group reaffirmed a “buy” rating and set a $96.00 price target on shares of Texas Instruments in a research report on Monday, September 25th. One analyst has rated the stock with a sell rating, sixteen have issued a hold rating, ten have assigned a buy rating and two have given a strong buy rating to the company’s stock. Texas Instruments has an average rating of “Hold” and a consensus price target of $99.84.

Shares of Texas Instruments (TXN) traded up $2.61 on Monday, hitting $119.44. The company had a trading volume of 7,210,000 shares, compared to its average volume of 5,220,000. The company has a quick ratio of 2.96, a current ratio of 3.89 and a debt-to-equity ratio of 0.28. The stock has a market capitalization of $117,720.00, a P/E ratio of 27.21, a price-to-earnings-growth ratio of 2.66 and a beta of 1.27. Texas Instruments has a one year low of $74.16 and a one year high of $119.98.

Texas Instruments (NASDAQ:TXN) last issued its quarterly earnings results on Tuesday, October 24th. The semiconductor company reported $1.26 EPS for the quarter, beating the Zacks’ consensus estimate of $1.12 by $0.14. The company had revenue of $4.12 billion during the quarter, compared to the consensus estimate of $3.91 billion. Texas Instruments had a return on equity of 38.88% and a net margin of 29.98%. Texas Instruments’s revenue was up 12.0% on a year-over-year basis. During the same period last year, the business posted $0.94 earnings per share. sell-side analysts anticipate that Texas Instruments will post 4.36 EPS for the current year.

In other news, Chairman Richard K. Templeton sold 450,000 shares of the firm’s stock in a transaction on 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 completion of the transaction, the chairman now directly owns 1,137,056 shares of the company’s stock, valued at $109,737,274.56. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Richard K. Templeton sold 190,000 shares of the firm’s stock in a transaction on Friday, October 27th. The stock was sold at an average price of $96.88, for a total value of $18,407,200.00. Following the completion of the transaction, the chief executive officer now directly owns 1,137,056 shares of the company’s stock, valued at $110,157,985.28. The disclosure for this sale can be found here. Over the last three months, insiders have sold 1,362,293 shares of company stock valued at $131,754,396. 0.96% of the stock is owned by corporate insiders.

Institutional investors have recently bought and sold shares of the company. Culbertson A N & Co. Inc. boosted its stake in Texas Instruments by 20.4% during the fourth quarter. Culbertson A N & Co. Inc. now owns 19,943 shares of the semiconductor company’s stock valued at $2,083,000 after buying an additional 3,375 shares during the period. Eastern Bank boosted its stake in Texas Instruments by 3.4% during the fourth quarter. Eastern Bank now owns 21,942 shares of the semiconductor company’s stock valued at $2,291,000 after buying an additional 721 shares during the period. Palo Capital Inc. boosted its stake in Texas Instruments by 14.3% during the fourth quarter. Palo Capital Inc. now owns 26,138 shares of the semiconductor company’s stock valued at $2,730,000 after buying an additional 3,269 shares during the period. Patten & Patten Inc. TN boosted its stake in Texas Instruments by 112.0% during the fourth quarter. Patten & Patten Inc. TN now owns 115,544 shares of the semiconductor company’s stock valued at $12,067,000 after buying an additional 61,044 shares during the period. Finally, Steward Partners Investment Advisory LLC boosted its stake in Texas Instruments by 9.5% during the fourth quarter. Steward Partners Investment Advisory LLC now owns 10,225 shares of the semiconductor company’s stock valued at $1,067,000 after buying an additional 886 shares during the period. 83.89% of the stock is owned by hedge funds and other institutional investors.

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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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