Texas Instruments (NASDAQ:TXN) Shares Fall Following Analyst Downgrade

Texas Instruments Incorporated (NASDAQ:TXN) experienced a notable drop in its stock price before the market even opened on Friday, following a downgrade from Barclays. The investment firm lowered its price target for Texas Instruments from $200.00 to $180.00. The stock closed at $200.61 the previous day but opened at $190.00, reflecting the impact of this announcement. As of the latest trading session, Texas Instruments shares were last reported at $190.73, with a trading volume of 2,957,598 shares.

Several other research organizations have also weighed in on Texas Instruments recently. For instance, Robert W. Baird reduced their price target from $200.00 to $175.00, maintaining a 'neutral' rating on the shares. Conversely, Evercore ISI increased their price target, setting it at $298.00 with an 'outperform' rating. On the other hand, Bank of America cut their price target to $215.00 while also maintaining a 'neutral' rating.

In addition, Benchmark reaffirmed a 'buy' rating with a price target set at $230.00, and Rosenblatt Securities echoed this with a 'buy' rating and a target of $250.00. The consensus among analysts indicates two rated the stock as a sell, twelve as a hold, and eight as a buy. MarketBeat reports that the average price target across analysts sits at approximately $209.45.

Insider Trading Activities

In related news concerning insider transactions, Director Ronald Kirk sold 10,539 shares of Texas Instruments on November 25th for an average price of $203.33, totaling approximately $2,142,894.87. Post-transaction, he holds about 14,323 shares valued at roughly $2,912,295.59, marking a decrease of 42.39% in his position. These transactions have been disclosed in a filing with the Securities & Exchange Commission.

Institutional Investments

Institutional investors have also been active with Texas Instruments stocks. For instance, State Street Corp increased its stake by 0.9%, now owning 41,679,234 shares valued at around $8.61 billion after acquiring 391,306 additional shares. Other firms like Geode Capital Management LLC and Charles Schwab Investment Management Inc. have also raised their respective holdings during the third quarter, highlighting a significant institutional interest in the semiconductor company. Overall, institutions hold about 84.99% of Texas Instruments stocks.

Performance Overview

The stock carries a market capitalization of $171.40 billion, a price-to-earnings ratio of 34.92, and a P/E/G ratio of 3.84, with a beta of 0.98. The stock's fifty-day moving average price stands at $193.69, while its 200-day moving average is $199.57. Texas Instruments announced its earnings results on January 23rd, reporting an earnings per share (EPS) of $1.30, surpassing analysts' expectations of $1.20. Year-over-year, the company reported a drop in EPS from $1.49.

Dividend Declaration

Texas Instruments has also declared a quarterly dividend, set to be paid on February 11th. Shareholders of record on January 31st will receive a dividend of $1.36, leading to an annualized dividend of $5.44, which yields approximately 2.90%. The current dividend payout ratio stands at 101.12%, indicating a commitment to return capital to shareholders.

Company Summary

Texas Instruments specializes in the design, manufacturing, and sale of semiconductors, serving electronics designers and manufacturers both domestically and globally. The company operates through two main segments: Analog and Embedded Processing. The Analog segment focuses on providing a wide range of power management products.

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