Zacks Investment Research Downgrades Texas Instruments (TXN) to Hold

Texas Instruments (NASDAQ:TXN) was downgraded by Zacks Investment Research from a “strong-buy” rating to a “hold” rating in a note issued to investors on Saturday.

According to Zacks, “Texas Instruments continues to prudently invest its R&D dollars in several high margin, high-growth areas of the analog and embedded processing markets. This is gradually increasing its exposure to industrial and automotive markets and dollar content at customers, while reducing exposure to volatile consumer/computing markets. Margins continue to expand on secular strength in the auto and industrial markets and manufacturing efficiencies that include growing 300-millimeter Analog output. Continous dividend hike is a big positive. However, increasing competition, unfavorable currency effect and a high debt load remain concerns. The company has outperformed the industry it belongs on a one year basis.”

Several other research analysts also recently commented on TXN. Longbow Research initiated coverage on shares of Texas Instruments in a report on Tuesday, March 27th. They issued a “neutral” rating for the company. ValuEngine downgraded shares of Texas Instruments from a “buy” rating to a “hold” rating in a report on Monday, April 2nd. UBS Group initiated coverage on shares of Texas Instruments in a report on Wednesday, April 4th. They issued a “sell” rating and a $85.00 price target for the company. BidaskClub downgraded shares of Texas Instruments from a “strong-buy” rating to a “buy” rating in a report on Tuesday, April 24th. Finally, B. Riley raised their price target on shares of Texas Instruments from $110.00 to $115.00 and gave the company a “neutral” rating in a report on Wednesday, April 25th. One analyst has rated the stock with a sell rating, fourteen have given a hold rating and fifteen have given a buy rating to the company’s stock. The stock has an average rating of “Hold” and an average price target of $114.68.

Texas Instruments opened at $110.25 on Friday, according to MarketBeat Ratings. The company has a quick ratio of 3.53, a current ratio of 4.62 and a debt-to-equity ratio of 0.34. Texas Instruments has a 12 month low of $76.19 and a 12 month high of $120.75. The company has a market capitalization of $107.93 billion, a P/E ratio of 25.76, a price-to-earnings-growth ratio of 2.17 and a beta of 1.28.

Texas Instruments (NASDAQ:TXN) last announced its quarterly earnings results on Tuesday, April 24th. The semiconductor company reported $1.21 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $1.11 by $0.10. Texas Instruments had a net margin of 26.39% and a return on equity of 43.73%. The firm had revenue of $3.79 billion during the quarter, compared to the consensus estimate of $3.65 billion. During the same period last year, the firm earned $0.89 EPS. The business’s quarterly revenue was up 11.4% compared to the same quarter last year. equities analysts expect that Texas Instruments will post 5.34 earnings per share for the current year.

In related news, insider Kevin J. Ritchie sold 52,698 shares of Texas Instruments stock in a transaction on Friday, May 11th. The shares were sold at an average price of $110.17, for a total value of $5,805,738.66. Following the transaction, the insider now owns 172,545 shares in the company, valued at approximately $19,009,282.65. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, insider Niels Anderskouv sold 102,595 shares of the business’s stock in a transaction dated Monday, May 14th. The shares were sold at an average price of $110.10, for a total transaction of $11,295,709.50. Following the completion of the transaction, the insider now owns 110,187 shares in the company, valued at approximately $12,131,588.70. The disclosure for this sale can be found here. In the last quarter, insiders sold 175,484 shares of company stock worth $19,325,083. 0.84% of the stock is owned by corporate insiders.

Several hedge funds have recently added to or reduced their stakes in the business. Penserra Capital Management LLC purchased a new position in shares of Texas Instruments during the first quarter valued at about $106,000. Stelac Advisory Services LLC purchased a new position in shares of Texas Instruments during the first quarter valued at about $110,000. Massey Quick Simon & CO. LLC increased its position in shares of Texas Instruments by 89.7% during the first quarter. Massey Quick Simon & CO. LLC now owns 1,066 shares of the semiconductor company’s stock valued at $111,000 after buying an additional 504 shares during the period. Risk Paradigm Group LLC purchased a new position in shares of Texas Instruments during the fourth quarter valued at about $138,000. Finally, Perigon Wealth Management LLC increased its position in shares of Texas Instruments by 1,680.3% during the first quarter. Perigon Wealth Management LLC now owns 1,353 shares of the semiconductor company’s stock valued at $141,000 after buying an additional 1,277 shares during the period. Hedge funds and other institutional investors own 84.30% of the company’s stock.

About Texas Instruments

Texas Instruments Incorporated designs, manufactures, and sells semiconductors to electronics designers and manufacturers worldwide. It operates in two segments, Analog and Embedded Processing. The Analog segment offers power products to manage power requirements in various levels using battery management solutions, portable components, power supply controls, point-of-load products, switches and interfaces, integrated protection devices, high-voltage products, and mobile lighting and display products.

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