Zacks Investment Research upgraded shares of Texas Instruments (NASDAQ:TXN) from a hold rating to a buy rating in a research report sent to investors on Saturday morning. They currently have $124.00 price objective on the semiconductor company’s stock.
According to Zacks, “exas 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.”
Several other analysts also recently weighed in on the company. Oppenheimer reissued a buy rating and issued a $130.00 target price on shares of Texas Instruments in a report on Friday, January 19th. BMO Capital Markets reissued an outperform rating and issued a $138.00 target price (up from $5.08) on shares of Texas Instruments in a report on Friday, January 19th. Stifel Nicolaus boosted their target price on Texas Instruments from $98.00 to $115.00 and gave the company a hold rating in a report on Thursday, January 18th. Credit Suisse Group reissued an in-line rating and issued a $125.00 target price (up from $110.00) on shares of Texas Instruments in a report on Tuesday, January 16th. Finally, Royal Bank of Canada reissued a buy rating and issued a $112.00 target price on shares of Texas Instruments in a report on Thursday, January 4th. One analyst has rated the stock with a sell rating, sixteen have given a hold rating, ten have given a buy rating and two have assigned a strong buy rating to the company’s stock. Texas Instruments presently has an average rating of Hold and a consensus price target of $100.92.
Texas Instruments (NASDAQ:TXN) last posted its earnings results on Tuesday, January 23rd. The semiconductor company reported $1.09 earnings per share for the quarter, meeting the Thomson Reuters’ consensus estimate of $1.09. Texas Instruments had a return on equity of 38.88% and a net margin of 29.98%. The business had revenue of $3.75 billion during the quarter, compared to the consensus estimate of $3.74 billion. During the same period in the previous year, the business earned $0.91 EPS. The business’s quarterly revenue was up 9.8% on a year-over-year basis. analysts anticipate that Texas Instruments will post 4.36 earnings per share for the current fiscal year.
The firm also recently announced a quarterly dividend, which will be paid on Monday, February 12th. Shareholders of record on Wednesday, January 31st will be given a dividend of $0.62 per share. This represents a $2.48 annualized dividend and a yield of 2.07%. The ex-dividend date is Tuesday, January 30th. Texas Instruments’s payout ratio is 56.49%.
In related news, insider R Gregory Delagi sold 238,750 shares of the company’s stock in a transaction that occurred on Monday, November 6th. The stock was sold at an average price of $97.44, for a total value of $23,263,800.00. Following the sale, the insider now owns 189,234 shares in the company, valued at approximately $18,438,960.96. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, Director Mark A. Blinn sold 16,990 shares of the company’s stock in a transaction that occurred on Thursday, October 26th. The stock was sold at an average price of $96.44, for a total value of $1,638,515.60. Following the completion of the sale, the director now owns 18,495 shares in the company, valued at approximately $1,783,657.80. The disclosure for this sale can be found here. Insiders have sold a total of 1,362,293 shares of company stock worth $131,754,396 in the last quarter. 0.96% of the stock is currently owned by insiders.
Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Vanguard Group Inc. grew its holdings in Texas Instruments by 2.1% during the 2nd quarter. Vanguard Group Inc. now owns 81,330,150 shares of the semiconductor company’s stock valued at $6,256,728,000 after buying an additional 1,683,613 shares during the last quarter. BlackRock Inc. grew its holdings in Texas Instruments by 1.1% during the 2nd quarter. BlackRock Inc. now owns 65,400,461 shares of the semiconductor company’s stock valued at $5,031,257,000 after buying an additional 681,821 shares during the last quarter. Capital International Investors grew its holdings in Texas Instruments by 3.0% during the 3rd quarter. Capital International Investors now owns 14,794,402 shares of the semiconductor company’s stock valued at $1,326,170,000 after buying an additional 435,938 shares during the last quarter. Janus Henderson Group PLC grew its holdings in Texas Instruments by 16.5% during the 3rd quarter. Janus Henderson Group PLC now owns 14,482,401 shares of the semiconductor company’s stock valued at $1,298,212,000 after buying an additional 2,055,040 shares during the last quarter. Finally, Northern Trust Corp grew its holdings in Texas Instruments by 0.4% during the 2nd quarter. Northern Trust Corp now owns 13,556,007 shares of the semiconductor company’s stock valued at $1,042,864,000 after buying an additional 53,846 shares during the last quarter. Institutional investors and hedge funds own 83.89% of the company’s stock.
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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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