Susquehanna Lowers Target Price for Texas Instruments to $240.00

Texas Instruments (NASDAQ:TXN) has recently seen its target price adjusted by Susquehanna, moving from $250.00 to $240.00, according to a research note distributed to investors on Monday. Despite this reduction, Susquehanna maintains a positive rating on the semiconductor company's stock.

Other financial firms have also provided their insights regarding Texas Instruments. For example, Robert W. Baird increased their target price from $175.00 to $200.00, while designating the stock with a 'neutral' rating in a report dated July 24th. Furthermore, Citigroup raised their outlook, upgrading Texas Instruments from 'neutral' to 'buy' and adjusting their price target from $200.00 to $235.00 in a report issued on August 21st.

In addition, Barclays set a higher price target for Texas Instruments, moving it from $190.00 to $210.00, with an 'equal weight' rating confirmed on July 24th. Truist Financial, on the other hand, reduced their target price from $203.00 to $198.00, opting for a 'hold' rating in a report released on August 21st. Another firm, Rosenblatt Securities, reaffirmed a 'buy' rating while maintaining a price objective of $250.00 in a note published on October 14th.

As it stands, three investment analysts have categorized the stock with a sell rating. In contrast, eleven analysts have assigned a hold rating, while nine have approved a buy rating. According to MarketBeat.com, Texas Instruments currently holds a consensus rating of 'Hold' and an average price target of $206.95.

Texas Instruments Performance

On Monday, shares of Texas Instruments opened at $201.74. The company boasts a market capitalization of $184.20 billion, accompanied by a price-to-earnings (P/E) ratio of 35.02 and a P/E growth (P/E/G) ratio of 4.32. The stock has displayed fluctuations, with a 12-month low of $139.48 and a peak of $214.66. Financial metrics show a debt-to-equity ratio of 0.75, along with a current ratio of 4.62 and a quick ratio of 3.49. The 50-day and 200-day moving averages stand at $203.43 and $194.99, respectively.

In terms of financial performance, Texas Instruments reported quarterly earnings on October 22nd, revealing earnings per share (EPS) of $1.47, surpassing the consensus estimate of $1.38 by $0.09. The company reported a net margin of 33.01% and a return on equity of 31.10%. Quarterly revenue totaled $4.15 billion, also exceeding analyst expectations of $4.12 billion. However, year-over-year revenue showed a decline of 8.4%. Analysts generally expect Texas Instruments to declare earnings of $5.11 per share for the current fiscal year.

Dividend Announcement

Texas Instruments has recently announced an increase in its quarterly dividend, set to be paid out on November 12th. Shareholders on record as of October 31st will receive a dividend of $1.36 per share, up from the previous $1.30. This adjustment translates into an annualized dividend of $5.44 and a yield of 2.70%, with a payout ratio of 90.28%.

Insider Trading Activity

There has been some insider trading activity at Texas Instruments, noted by the recent sale of shares by VP Shanon J. Leonard. On August 23rd, Leonard sold 2,816 shares at an average price of $208.91, totaling $588,290.56. Post-transaction, Leonard retains ownership of 24,112 shares, valued at approximately $5,037,237.92. Similarly, VP Mohammad Yunus sold 3,778 shares on August 26th at an average sale price of $208.90, bringing in approximately $789,224.20. After the sale, Yunus holds 28,894 shares valued at about $6,035,956.60. In total, insiders liquidated 15,558 shares, valued around $3,255,323 within the last quarter, indicating that corporate insiders retain 0.68% of the company's stock.

Institutional Investment Trends

Texas Instruments has attracted attention from several institutional investors recently. Vanguard Group Inc. increased its stake by 0.6% during the first quarter, resulting in ownership of 90,572,576 shares valued at $15,778,648,000, following an additional acquisition of 536,206 shares. Capital Research Global Investors also expanded its holdings by 4.7% in the same period, owning 28,715,467 shares worth $5,002,522,000 post-investment.

Legal & General Group Plc raised its stake by 0.8% during the second quarter, now owning 7,831,270 shares, priced at $1,523,415,000 after acquiring 64,067 shares. Moreover, Van ECK Associates Corp lifted its holdings by 6.2%, owning 5,955,353 shares valued at $1,158,495,000. Lastly, Fayez Sarofim & Co increased its position by 2.5%, owning 4,271,960 shares currently worth $744,218,000. Overall, institutional investors hold approximately 84.99% of Texas Instruments' shares.

Company Overview

Texas Instruments Incorporated specializes in designing, manufacturing, and selling semiconductors for electronics designers and manufacturers both in the United States and globally. The company operates through two primary segments: Analog and Embedded Processing. The Analog segment offers various power management solutions that cater to different voltage requirements, including battery management, DC/DC switching regulators, AC/DC controllers and converters, power switches, linear regulators, voltage references, and lighting products.

stocks, semiconductors, investments