Texas Instruments (NASDAQ:TXN) Trading Down 3.6% – Should You Sell?

Shares of Texas Instruments Incorporated (NASDAQ:TXN) dropped 3.6% during trading on Thursday . The stock traded as low as $190.15 and last traded at $190.31. Approximately 635,299 shares traded hands during trading, a decline of 86% from the average daily volume of 4,600,653 shares. The stock had previously closed at $197.51.

Analyst Upgrades and Downgrades

Several analysts have weighed in on TXN shares. Robert W. Baird lowered their price target on shares of Texas Instruments from $200.00 to $175.00 and set a “neutral” rating for the company in a research note on Wednesday, October 23rd. Evercore ISI increased their target price on Texas Instruments from $268.00 to $298.00 and gave the company an “outperform” rating in a report on Wednesday, October 23rd. Bank of America decreased their price target on Texas Instruments from $220.00 to $215.00 and set a “neutral” rating on the stock in a research note on Wednesday, October 23rd. Truist Financial dropped their price objective on Texas Instruments from $198.00 to $190.00 and set a “hold” rating for the company in a research note on Wednesday, October 23rd. Finally, Barclays decreased their target price on shares of Texas Instruments from $210.00 to $200.00 and set an “equal weight” rating on the stock in a research note on Wednesday, October 23rd. Two investment analysts have rated the stock with a sell rating, twelve have given a hold rating and nine have assigned a buy rating to the company’s stock. Based on data from MarketBeat, Texas Instruments presently has a consensus rating of “Hold” and a consensus target price of $209.71.

Texas Instruments Price Performance

The company has a current ratio of 4.31, a quick ratio of 3.14 and a debt-to-equity ratio of 0.74. The company has a market capitalization of $175.53 billion, a P/E ratio of 35.77, a P/E/G ratio of 3.69 and a beta of 0.98. The firm has a fifty day moving average of $195.35 and a 200 day moving average of $199.65.

Texas Instruments (NASDAQ:TXN) last issued its quarterly earnings data on Tuesday, October 22nd. The semiconductor company reported $1.47 earnings per share for the quarter, beating analysts’ consensus estimates of $1.38 by $0.09. The company had revenue of $4.15 billion for the quarter, compared to the consensus estimate of $4.12 billion. Texas Instruments had a net margin of 31.60% and a return on equity of 29.05%. The firm’s revenue for the quarter was down 8.4% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $1.80 earnings per share. On average, equities research analysts anticipate that Texas Instruments Incorporated will post 5.08 EPS for the current year.

Texas Instruments Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Tuesday, February 11th. Shareholders of record on Friday, January 31st will be issued a $1.36 dividend. This represents a $5.44 dividend on an annualized basis and a yield of 2.83%. The ex-dividend date is Friday, January 31st. Texas Instruments’s dividend payout ratio is 101.12%.

Insider Activity

In other Texas Instruments news, Director Robert E. Sanchez sold 9,990 shares of Texas Instruments stock in a transaction that occurred on Friday, October 25th. The shares were sold at an average price of $208.80, for a total transaction of $2,085,912.00. Following the transaction, the director now owns 20,461 shares of the company’s stock, valued at $4,272,256.80. The trade was a 32.81 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Ronald Kirk sold 10,539 shares of the company’s stock in a transaction on Monday, November 25th. The stock was sold at an average price of $203.33, for a total transaction of $2,142,894.87. Following the completion of the transaction, the director now directly owns 14,323 shares of the company’s stock, valued at $2,912,295.59. This represents a 42.39 % decrease in their position. The disclosure for this sale can be found here. Insiders own 0.68% of the company’s stock.

Institutional Trading of Texas Instruments

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Seven Eight Capital LP purchased a new stake in Texas Instruments during the 2nd quarter valued at approximately $1,185,000. XTX Topco Ltd bought a new position in shares of Texas Instruments during the second quarter worth $1,742,000. ProVise Management Group LLC boosted its position in shares of Texas Instruments by 5.2% during the second quarter. ProVise Management Group LLC now owns 8,908 shares of the semiconductor company’s stock worth $1,733,000 after acquiring an additional 442 shares during the last quarter. Cowa LLC purchased a new position in Texas Instruments during the second quarter valued at $219,000. Finally, Intech Investment Management LLC increased its holdings in Texas Instruments by 5.9% in the 2nd quarter. Intech Investment Management LLC now owns 23,106 shares of the semiconductor company’s stock valued at $4,495,000 after acquiring an additional 1,289 shares during the last quarter. Institutional investors own 84.99% of the company’s stock.

About Texas Instruments

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.