Texas Instruments (NASDAQ:TXN) Shares Gap Up After Better-Than-Expected Earnings

Texas Instruments Incorporated (NASDAQ:TXN)’s stock price gapped up prior to trading on Wednesday following a better than expected earnings announcement. The stock had previously closed at $165.47, but opened at $178.23. Texas Instruments shares last traded at $176.19, with a volume of 3,663,140 shares trading hands.

The semiconductor company reported $1.20 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.07 by $0.13. Texas Instruments had a net margin of 37.16% and a return on equity of 39.96%. The firm had revenue of $3.66 billion during the quarter, compared to the consensus estimate of $3.61 billion. During the same quarter in the previous year, the firm posted $1.85 EPS. The company’s revenue for the quarter was down 16.4% compared to the same quarter last year.

Wall Street Analysts Forecast Growth

A number of brokerages have recently issued reports on TXN. TD Cowen boosted their price objective on shares of Texas Instruments from $160.00 to $175.00 and gave the company a “hold” rating in a research report on Wednesday. Mizuho lifted their target price on shares of Texas Instruments from $164.00 to $170.00 and gave the company a “neutral” rating in a research note on Wednesday. Stifel Nicolaus boosted their price target on shares of Texas Instruments from $160.00 to $172.00 and gave the stock a “hold” rating in a research note on Wednesday. Cantor Fitzgerald boosted their price target on shares of Texas Instruments from $170.00 to $180.00 and gave the stock a “neutral” rating in a research note on Monday, April 8th. Finally, Evercore ISI assumed coverage on shares of Texas Instruments in a research note on Tuesday, April 16th. They issued an “outperform” rating and a $213.00 price target on the stock. Three analysts have rated the stock with a sell rating, ten have assigned a hold rating and seven have issued a buy rating to the stock. According to MarketBeat, Texas Instruments presently has a consensus rating of “Hold” and a consensus target price of $178.79.

Insider Activity at Texas Instruments

In related news, Director Mark A. Blinn sold 1,744 shares of the stock in a transaction that occurred on Wednesday, January 31st. The shares were sold at an average price of $159.85, for a total transaction of $278,778.40. Following the completion of the sale, the director now owns 11,693 shares of the company’s stock, valued at $1,869,126.05. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 0.68% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Texas Instruments

Institutional investors and hedge funds have recently made changes to their positions in the stock. Norges Bank acquired a new position in Texas Instruments during the fourth quarter valued at $1,649,592,000. Morgan Stanley lifted its position in Texas Instruments by 14.2% during the third quarter. Morgan Stanley now owns 14,154,358 shares of the semiconductor company’s stock valued at $2,250,685,000 after purchasing an additional 1,755,582 shares during the period. California Public Employees Retirement System lifted its position in Texas Instruments by 33.2% during the fourth quarter. California Public Employees Retirement System now owns 6,035,704 shares of the semiconductor company’s stock valued at $1,028,846,000 after purchasing an additional 1,502,989 shares during the period. Assenagon Asset Management S.A. lifted its position in Texas Instruments by 565.4% during the fourth quarter. Assenagon Asset Management S.A. now owns 1,693,577 shares of the semiconductor company’s stock valued at $288,687,000 after purchasing an additional 1,439,066 shares during the period. Finally, Baillie Gifford & Co. lifted its position in Texas Instruments by 338.4% during the fourth quarter. Baillie Gifford & Co. now owns 1,795,191 shares of the semiconductor company’s stock valued at $306,008,000 after purchasing an additional 1,385,725 shares during the period. 84.99% of the stock is currently owned by institutional investors and hedge funds.

Texas Instruments Stock Up 6.0 %

The company has a market capitalization of $159.67 billion, a price-to-earnings ratio of 24.89, a P/E/G ratio of 3.52 and a beta of 1.04. The business’s 50-day moving average is $168.32 and its 200-day moving average is $161.90. The company has a quick ratio of 3.35, a current ratio of 4.55 and a debt-to-equity ratio of 0.63.

Texas Instruments Company Profile

Texas Instruments Incorporated designs, manufactures, and sells semiconductors to electronics designers and manufacturers in the United States and internationally. The company operates through Analog and Embedded Processing segments. The Analog segment offers power products to manage power requirements across various voltage levels, including battery-management solutions, DC/DC switching regulators, AC/DC and isolated controllers and converters, power switches, linear regulators, voltage references, and lighting products.