Zacks Investment Research Downgrades Texas Instruments (TXN) to Hold

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 equities research analysts have also weighed in on the company. Oppenheimer restated a “buy” rating and set a $130.00 price objective on shares of Texas Instruments in a research note on Friday. BMO Capital Markets restated an “outperform” rating and set a $138.00 price objective (up previously from $5.08) on shares of Texas Instruments in a research note on Friday. Stifel Nicolaus raised their price objective on Texas Instruments from $98.00 to $115.00 and gave the company a “hold” rating in a research note on Thursday. Credit Suisse Group restated an “in-line” rating and set a $125.00 price objective (up previously from $110.00) on shares of Texas Instruments in a research note on Tuesday, January 16th. Finally, Royal Bank of Canada reaffirmed a “buy” rating and set a $112.00 target price on shares of Texas Instruments in a report on Thursday, January 4th. One equities research analyst has rated the stock with a sell rating, sixteen have issued a hold rating, ten have given a buy rating and two have assigned a strong buy rating to the stock. The company currently has an average rating of “Hold” and a consensus target price of $99.29.

Shares of Texas Instruments (NASDAQ:TXN) traded up $0.42 during midday trading on Monday, reaching $116.83. The company’s stock had a trading volume of 6,367,200 shares, compared to its average volume of 5,837,892. Texas Instruments has a 12-month low of $74.16 and a 12-month high of $119.98. 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 firm has a market cap of $117,350.00, a price-to-earnings ratio of 26.61, a PEG ratio of 2.66 and a beta of 1.27.

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

In related news, COO Brian T. Crutcher sold 68,687 shares of the firm’s stock in a transaction that occurred on Friday, October 27th. The stock was sold at an average price of $96.10, for a total value of $6,600,820.70. Following the sale, the chief operating officer now owns 346,428 shares of the company’s stock, valued at approximately $33,291,730.80. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, SVP Bing Xie sold 17,500 shares of the firm’s stock in a transaction that occurred on Monday, October 30th. The stock was sold at an average price of $96.53, for a total value of $1,689,275.00. Following the completion of the sale, the senior vice president now directly owns 78,102 shares in the company, valued at approximately $7,539,186.06. The disclosure for this sale can be found here. In the last three months, insiders sold 1,362,293 shares of company stock worth $131,754,396. Company insiders own 0.96% of the company’s stock.

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. BerganKDV Wealth Management LLC increased its position in shares of Texas Instruments by 53.3% during the 3rd quarter. BerganKDV Wealth Management LLC now owns 12,034 shares of the semiconductor company’s stock valued at $1,079,000 after purchasing an additional 4,182 shares during the period. Ingalls & Snyder LLC boosted its position in Texas Instruments by 9.6% during the third quarter. Ingalls & Snyder LLC now owns 12,600 shares of the semiconductor company’s stock valued at $1,129,000 after purchasing an additional 1,100 shares during the last quarter. PGGM Investments boosted its position in Texas Instruments by 102.8% during the third quarter. PGGM Investments now owns 956,619 shares of the semiconductor company’s stock valued at $85,751,000 after purchasing an additional 484,906 shares during the last quarter. Sather Financial Group Inc acquired a new stake in shares of Texas Instruments in the second quarter worth about $600,000. Finally, Prudential PLC lifted its position in shares of Texas Instruments by 62.3% in the second quarter. Prudential PLC now owns 26,520 shares of the semiconductor company’s stock worth $2,040,000 after buying an additional 10,175 shares during the last quarter. 83.89% of the stock is currently owned by institutional investors and hedge funds.

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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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