Texas Instruments Incorporated (TXN) Upgraded by Zacks Investment Research to Strong-Buy
Zacks Investment Research upgraded shares of Texas Instruments Incorporated (NASDAQ:TXN) from a hold rating to a strong-buy rating in a research note published on Friday. They currently have $107.00 price objective on the semiconductor company’s stock.
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.”
A number of other research firms have also recently weighed in on TXN. Morgan Stanley restated an equal weight rating and issued a $83.00 price target (up from $78.00) on shares of Texas Instruments in a report on Wednesday, July 26th. SunTrust Banks, Inc. restated a hold rating and issued a $86.00 price target (up from $84.00) on shares of Texas Instruments in a report on Wednesday, July 26th. Cowen and Company restated a market perform rating and issued a $85.00 price target (up from $82.00) on shares of Texas Instruments in a report on Wednesday, July 26th. Barclays PLC raised their price target on shares of Texas Instruments from $77.00 to $83.00 and gave the company an equal weight rating in a report on Tuesday, July 18th. Finally, BidaskClub cut shares of Texas Instruments from a strong-buy rating to a buy rating in a report on Wednesday, September 13th. One equities research analyst has rated the stock with a sell rating, fifteen have assigned a hold rating, thirteen have assigned a buy rating and three have given a strong buy rating to the company. Texas Instruments currently has an average rating of Buy and an average price target of $87.44.
Texas Instruments (TXN) traded up 1.85% during midday trading on Friday, reaching $95.18. 5,272,369 shares of the company traded hands. Texas Instruments has a one year low of $66.80 and a one year high of $95.40. The company has a 50 day moving average price of $88.24 and a 200-day moving average price of $82.41. The stock has a market capitalization of $94.23 billion, a P/E ratio of 23.81 and a beta of 1.24.
Texas Instruments (NASDAQ:TXN) last posted its earnings results on Tuesday, July 25th. The semiconductor company reported $1.03 EPS for the quarter, beating analysts’ consensus estimates of $0.96 by $0.07. Texas Instruments had a net margin of 28.68% and a return on equity of 36.52%. The business had revenue of $3.69 billion for the quarter, compared to the consensus estimate of $3.57 billion. During the same quarter last year, the firm posted $0.76 EPS. The company’s revenue for the quarter was up 12.8% on a year-over-year basis. Analysts forecast that Texas Instruments will post $4.13 EPS for the current fiscal year.
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The business also recently announced a quarterly dividend, which will be paid on Monday, November 13th. Shareholders of record on Tuesday, October 31st will be given a $0.62 dividend. The ex-dividend date of this dividend is Monday, October 30th. This represents a $2.48 dividend on an annualized basis and a yield of 2.61%. This is a boost from Texas Instruments’s previous quarterly dividend of $0.50. Texas Instruments’s dividend payout ratio is presently 50.51%.
Texas Instruments declared that its board has approved a share buyback plan on Thursday, September 21st that authorizes the company to repurchase $6.00 billion in outstanding shares. This repurchase authorization authorizes the semiconductor company to reacquire up to 74% of its shares through open market purchases. Shares repurchase plans are typically a sign that the company’s board of directors believes its stock is undervalued.
In other Texas Instruments news, insider Kevin J. Ritchie sold 105,396 shares of the business’s stock in a transaction dated Tuesday, August 15th. The shares were sold at an average price of $81.91, for a total transaction of $8,632,986.36. Following the sale, the insider now directly owns 252,257 shares in the company, valued at $20,662,370.87. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, COO Brian T. Crutcher sold 50,000 shares of the business’s stock in a transaction dated Monday, July 31st. The stock was sold at an average price of $81.09, for a total transaction of $4,054,500.00. Following the sale, the chief operating officer now owns 201,440 shares in the company, valued at $16,334,769.60. The disclosure for this sale can be found here. Insiders have sold 211,301 shares of company stock worth $17,259,256 over the last quarter. Insiders own 0.96% of the company’s stock.
Large investors have recently modified their holdings of the business. Vanguard Group Inc. increased its stake in shares of Texas Instruments by 2.1% during the second quarter. Vanguard Group Inc. now owns 81,330,150 shares of the semiconductor company’s stock worth $6,256,728,000 after buying an additional 1,683,613 shares during the period. BlackRock Inc. increased its stake in shares of Texas Instruments by 1.1% during the second quarter. BlackRock Inc. now owns 65,400,461 shares of the semiconductor company’s stock worth $5,031,257,000 after buying an additional 681,821 shares during the period. State Street Corp increased its stake in shares of Texas Instruments by 1.4% during the first quarter. State Street Corp now owns 40,943,910 shares of the semiconductor company’s stock worth $3,298,445,000 after buying an additional 573,645 shares during the period. Northern Trust Corp increased its stake in shares of Texas Instruments by 0.4% during the second quarter. Northern Trust Corp now owns 13,556,007 shares of the semiconductor company’s stock worth $1,042,864,000 after buying an additional 53,846 shares during the period. Finally, Janus Henderson Group PLC increased its stake in shares of Texas Instruments by 729.1% during the second quarter. Janus Henderson Group PLC now owns 12,427,361 shares of the semiconductor company’s stock worth $955,996,000 after buying an additional 10,928,410 shares during the period. 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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