Texas Instruments (NASDAQ:TXN) Shares Gap Up on Strong Earnings

Texas Instruments Incorporated (NASDAQ:TXN) shares gapped up before the market opened on Wednesday after the company announced better than expected quarterly earnings. The stock had previously closed at $165.47, but opened at $178.23. Texas Instruments shares last traded at $176.19, with a volume of 3,663,140 shares changing hands.

The semiconductor company reported $1.20 earnings per share for the quarter, topping analysts’ consensus estimates of $1.07 by $0.13. Texas Instruments had a net margin of 35.16% and a return on equity of 35.54%. The business had revenue of $3.66 billion for the quarter, compared to analysts’ expectations of $3.61 billion. During the same period in the prior year, the company posted $1.85 EPS. The business’s revenue for the quarter was down 16.4% on a year-over-year basis.

Texas Instruments Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Tuesday, May 21st. Stockholders of record on Wednesday, May 8th will be paid a dividend of $1.30 per share. This represents a $5.20 dividend on an annualized basis and a dividend yield of 2.97%. Texas Instruments’s dividend payout ratio (DPR) is presently 81.12%.

Analyst Ratings Changes

A number of equities analysts have recently weighed in on TXN shares. Cantor Fitzgerald reaffirmed a “neutral” rating and set a $180.00 price target on shares of Texas Instruments in a research note on Wednesday. Rosenblatt Securities reiterated a “buy” rating and issued a $210.00 price objective on shares of Texas Instruments in a research report on Wednesday. Mizuho boosted their price objective on shares of Texas Instruments from $164.00 to $170.00 and gave the stock a “neutral” rating in a research report on Wednesday. KeyCorp boosted their price objective on shares of Texas Instruments from $180.00 to $200.00 and gave the stock an “overweight” rating in a research report on Wednesday, January 24th. Finally, Evercore ISI boosted their price objective on shares of Texas Instruments from $213.00 to $225.00 and gave the stock an “outperform” rating in a research report on Wednesday. Three research analysts have rated the stock with a sell rating, eleven have issued a hold rating and seven have given a buy rating to the company. According to MarketBeat, the company currently has an average rating of “Hold” and a consensus target price of $180.74.

Insider Buying and Selling at Texas Instruments

In other news, Director Mark A. Blinn sold 1,744 shares of the stock in a transaction dated Wednesday, January 31st. The shares were sold at an average price of $159.85, for a total transaction of $278,778.40. Following the transaction, the director now directly owns 11,693 shares in the company, valued at approximately $1,869,126.05. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. 0.68% of the stock is owned by insiders.

Institutional Trading of Texas Instruments

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Vanguard Group Inc. increased its position in Texas Instruments by 0.5% during the 3rd quarter. Vanguard Group Inc. now owns 88,862,201 shares of the semiconductor company’s stock worth $14,129,979,000 after purchasing an additional 458,853 shares in the last quarter. Charles Schwab Investment Management Inc. grew its position in Texas Instruments by 6.1% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 20,048,334 shares of the semiconductor company’s stock valued at $3,398,637,000 after acquiring an additional 1,154,513 shares in the last quarter. Morgan Stanley grew its position in Texas Instruments by 14.2% in the third quarter. Morgan Stanley now owns 14,154,358 shares of the semiconductor company’s stock valued at $2,250,685,000 after acquiring an additional 1,755,582 shares in the last quarter. Franklin Resources Inc. grew its position in Texas Instruments by 10.1% in the fourth quarter. Franklin Resources Inc. now owns 11,928,210 shares of the semiconductor company’s stock valued at $2,033,283,000 after acquiring an additional 1,095,303 shares in the last quarter. Finally, Northern Trust Corp grew its position in Texas Instruments by 2.9% in the third quarter. Northern Trust Corp now owns 11,095,428 shares of the semiconductor company’s stock valued at $1,764,284,000 after acquiring an additional 315,302 shares in the last quarter. Institutional investors and hedge funds own 84.99% of the company’s stock.

Texas Instruments Price Performance

The company has a debt-to-equity ratio of 0.63, a current ratio of 4.55 and a quick ratio of 3.35. The firm has a market cap of $159.49 billion, a price-to-earnings ratio of 27.34, a P/E/G ratio of 3.56 and a beta of 1.04. The business’s 50-day moving average price is $168.95 and its two-hundred day moving average price is $162.08.

Texas Instruments Company Profile

Texas Instruments Incorporated designs, manufactures, and sells semiconductors to electronics designers and manufacturers in the United States and internationally. The company operates through Analog and Embedded Processing segments. The Analog segment offers power products to manage power requirements across various voltage levels, including battery-management solutions, DC/DC switching regulators, AC/DC and isolated controllers and converters, power switches, linear regulators, voltage references, and lighting products.