On September 26, 2023, it was reported that Hennessy Advisors Inc. reduced its holdings in Texas Instruments Incorporated (NASDAQ:TXN) by 5.3% during the second quarter of the year. According to the company’s recent filing with the Securities and Exchange Commission (SEC), Hennessy Advisors Inc. sold 1,628 shares of Texas Instruments’ stock, resulting in a position of 29,189 shares. The value of these holdings amounted to $5,255,000 by the end of the second quarter.
Texas Instruments (NASDAQ:TXN) released its quarterly earnings data on July 25th of this year. In this report, it was revealed that the semiconductor company reported earnings per share (EPS) of $1.87 for the quarter. This surpassed analysts’ consensus estimates of $1.76 by $0.11. Additionally, Texas Instruments generated $4.53 billion in revenue for the quarter, which exceeded analysts’ expectations of $4.37 billion.
Despite these positive results, Texas Instruments experienced a decline in quarterly revenue compared to the same period last year. The company’s net margin stood at 40.84%, and its return on equity reached 50.90%. In the previous year’s quarter, Texas Instruments earned an EPS of $2.45.
Research analyst reports have shed further light on Texas Instruments and its performance in the market. StockNews.com initiated coverage on the company and assigned it a “hold” rating on August 17th. UBS Group lowered their price target for Texas Instruments from $190 to $185 on July 26th.
Mizuho also reduced their price target from $185 to $181 for Texas Instruments on July 26th, while Truist Financial opted for a decrease from $178 to $174 on the same day.
Another research firm, Wolfe Research, initiated coverage on Texas Instruments and designated it as a “peer perform” rating on July 19th.
Overall, when considering the various research analyst reports, two have provided a sell rating for Texas Instruments’ stock, twelve have issued a hold rating, and six analysts have recommended buying the company’s stock. As per Bloomberg.com data, the average rating for Texas Instruments is “Hold,” with an average price target of $185.32.
In conclusion, according to recent filings and earnings reports, Hennessy Advisors Inc. has reduced its holdings in Texas Instruments Incorporated during the second quarter of 2023. Although Texas Instruments delivered impressive quarterly performance in terms of earnings per share and revenue, its revenue declined compared to the same period last year. Various research analysts’ reports offer insight into the market sentiment surrounding Texas Instruments stock, with a mix of sell, hold, and buy ratings provided by different firms.
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Institutional Investor Confidence and Stock Performance: Insights into Texas Instruments (TXN)
Texas Instruments Incorporated (TXN), a leading semiconductor company, has seen recent modifications in the holdings of various hedge funds and institutional investors. Monitoring these changes provides insights into investor sentiment and can help gauge the market’s perception of the company’s prospects.
During the first quarter of this year, Thomasville National Bank acquired a new stake in Texas Instruments with an investment worth approximately $375,000. Similarly, Lion Street Advisors LLC purchased new shares totaling around $225,000. Additionally, Arete Wealth Advisors LLC invested nearly $879,000 during the same period.
In the second quarter, Canandaigua National Bank & Trust Co. increased its holdings in Texas Instruments by 1.2%. The bank now owns 36,889 shares valued at approximately $6.64 million after acquiring an additional 447 shares. Covenant Asset Management LLC also saw a 2% boost in their holdings during the second quarter and now owns 7,789 shares equating to about $1.40 million.
These actions by institutional investors indicate the continued confidence they have in Texas Instruments’ future growth prospects. It is worth noting that institutional investors currently own an impressive 83.37% of the company’s stock.
In terms of stock performance, TXN opened at $160.90 on Tuesday with a 50-day simple moving average of $169.84 and a 200-day simple moving average of $172.65 – reflective of moderate fluctuations in share prices over time. The stock carries a market capitalization of $146.09 billion as of September 26, 2023.
With a price-to-earnings (P/E) ratio of 19.34 and a P/E to growth (PEG) ratio of 2.34, Texas Instruments maintains stable valuation metrics according to industry standards. Furthermore, it possesses a beta value of 1.03 not far from unity – indicating moderate sensitivity to market movements compared to benchmark indices.
Over the past year, Texas Instruments’ stock has traded between a low of $145.97 and a high of $188.12, showcasing the company’s ability to navigate market volatility while remaining within an acceptable price range.
In terms of financial health, Texas Instruments Incorporated boasts a debt-to-equity ratio of 0.69, indicating a sensible balance between its outstanding debts and equity. Additionally, the company maintains satisfactory liquidity ratios with a current ratio of 5.72 and a quick ratio of 4.35 – reassuring signs that it can meet its short-term obligations effectively.
Considering analyst reports on TXN, StockNews.com initiated coverage on August 17th and assigned a “hold” rating to the company. Furthermore, UBS Group lowered its price target from $190.00 to $185.00, along with other firms including Mizuho and Truist Financial also reducing their respective price targets for Texas Instruments.
Wolfe Research began coverage on July 19th and assigned a “peer perform” rating for the company. The consensus from Bloomberg.com suggests that out of 20 analysts covering the stock, two have given it a sell rating, twelve suggest holding positions, while six recommend buying shares of Texas Instruments.
On November 14th, Texas Instruments announced its quarterly dividend plans. Investors who hold shares as of October 31st will receive $1.30 per share – an increase from the previous dividend payout of $1.24 per share – resulting in an annualized dividend yield of approximately 3.23%. These actions signify the company’s commitment to rewarding shareholders with consistent dividends.
Unveiling insider trading activities within Texas Instruments, director Carrie Smith Cox sold 16,055 shares on July 31st at an average price of $180.04 per share for a total transaction value exceeding $2.89 million. Currently owning around 35,801 shares, Cox’s transaction was disclosed and can be accessed via the Securities & Exchange Commission website.
Another director, Pamela H. Patsley sold 10,539 shares on July 27th at an average price of $179.34 per share for a total transaction value exceeding $1.89 million. After this transaction, Patsley retains ownership of approximately 32,662 company shares.
In summary, Texas Instruments Incorporated continues to attract institutional investors who have recently modified their holdings in the company. With consistent dividend payouts and notable actions by corporate directors, Texas Instruments remains an intriguing proposition for investors seeking exposure to the semiconductor industry. As always with investment decisions, thorough research is essential to gain a comprehensive understanding of the company’s fundamentals and potential risks.
