Texas Instruments Incorporated (NASDAQ:TXN) was upgraded by Zacks Investment Research from a “hold” rating to a “strong-buy” rating in a report issued on Friday. The brokerage presently has a $107.00 target price on the semiconductor company’s stock. Zacks Investment Research‘s price objective suggests a potential upside of 14.50% from the stock’s previous close.
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 issued reports on TXN. Barclays PLC raised their target price on Texas Instruments from $85.00 to $95.00 and gave the company an “equal weight” rating in a report on Wednesday. KeyCorp reaffirmed a “hold” rating on shares of Texas Instruments in a report on Friday. SunTrust Banks, Inc. reaffirmed a “hold” rating and issued a $86.00 target price on shares of Texas Instruments in a report on Thursday, October 12th. Stifel Nicolaus reaffirmed a “hold” rating and issued a $85.00 target price on shares of Texas Instruments in a report on Wednesday, October 4th. Finally, Jefferies Group LLC reaffirmed a “buy” rating and issued a $96.00 target price on shares of Texas Instruments in a report on Monday, September 25th. One analyst has rated the stock with a sell rating, fifteen have assigned a hold rating, thirteen have given a buy rating and three have issued a strong buy rating to the company’s stock. The company has an average rating of “Buy” and an average target price of $87.44.
Texas Instruments (NASDAQ TXN) opened at 93.45 on Friday. Texas Instruments has a 1-year low of $66.80 and a 1-year high of $93.73. The stock has a market capitalization of $92.52 billion, a PE ratio of 23.37 and a beta of 1.24. The stock’s 50 day moving average price is $87.89 and its 200 day moving average price is $82.30.
Texas Instruments (NASDAQ:TXN) last released its earnings results on Tuesday, July 25th. The semiconductor company reported $1.03 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.96 by $0.07. The firm had revenue of $3.69 billion for the quarter, compared to analyst estimates of $3.57 billion. Texas Instruments had a return on equity of 36.52% and a net margin of 28.68%. The company’s revenue was up 12.8% on a year-over-year basis. During the same quarter last year, the firm posted $0.76 EPS. Equities research analysts forecast that Texas Instruments will post $4.13 earnings per share for the current year.
Texas Instruments announced that its board has authorized a share repurchase program on Thursday, September 21st that permits the company to buyback $6.00 billion in shares. This buyback authorization permits the semiconductor company to reacquire up to 74% of its stock through open market purchases. Stock buyback programs are typically an indication that the company’s leadership believes its stock is undervalued.
In other news, insider Kevin J. Ritchie sold 105,396 shares of the business’s stock in a transaction on Tuesday, August 15th. The stock was sold at an average price of $81.91, for a total transaction of $8,632,986.36. Following the completion of the sale, the insider now owns 252,257 shares in the company, valued at $20,662,370.87. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, insider Ellen Barker sold 15,000 shares of the business’s stock in a transaction on Monday, August 14th. The stock was sold at an average price of $81.87, for a total value of $1,228,050.00. Following the sale, the insider now owns 45,697 shares of the company’s stock, valued at approximately $3,741,213.39. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 211,301 shares of company stock valued at $17,259,256. 0.96% of the stock is currently owned by corporate insiders.
Hedge funds have recently added to or reduced their stakes in the company. American Beacon Advisors Inc. bought a new stake in shares of Texas Instruments during the first quarter worth $101,000. Patriot Financial Group Insurance Agency LLC raised its position in shares of Texas Instruments by 18.4% during the second quarter. Patriot Financial Group Insurance Agency LLC now owns 1,287 shares of the semiconductor company’s stock worth $101,000 after acquiring an additional 200 shares during the last quarter. ClariVest Asset Management LLC raised its position in shares of Texas Instruments by 8.4% during the first quarter. ClariVest Asset Management LLC now owns 1,296 shares of the semiconductor company’s stock worth $104,000 after acquiring an additional 100 shares during the last quarter. Balentine LLC raised its position in shares of Texas Instruments by 6.5% during the first quarter. Balentine LLC now owns 1,320 shares of the semiconductor company’s stock worth $106,000 after acquiring an additional 80 shares during the last quarter. Finally, MV Capital Management Inc. raised its position in shares of Texas Instruments by 7.6% during the second quarter. MV Capital Management Inc. now owns 1,324 shares of the semiconductor company’s stock worth $102,000 after acquiring an additional 93 shares during the last quarter. 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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