Texas Instruments Reports Strong Quarterly Earnings, Surpassing Analysts' Expectations

Texas Instruments (NASDAQ:TXN) released its quarterly earnings on Thursday, reporting earnings per share (EPS) of $1.30 for the quarter. This figure surpassed analysts' expectations, which had set the consensus at $1.20, marking a positive variance of $0.10. The semiconductor firm demonstrated a robust net margin of 31.60% and a return on equity of 29.05%. In comparison, during the same quarter last year, Texas Instruments reported earnings of $1.49 per share.

Price Performance

Shares of Texas Instruments experienced a notable increase, trading up by $3.56 on Thursday to reach a price of $200.61. The trading volume was significantly higher than average, with around 11,016,230 shares exchanged compared to an average of 6,155,027. Over the past year, the company's stock has seen a low of $155.46 and a high of $220.38. Currently, Texas Instruments holds a strong financial position with a current ratio of 4.31, a quick ratio of 3.14, and a debt-to-equity ratio of 0.74. The firm has a market capitalization of $183.00 billion and a price-to-earnings (P/E) ratio of 37.29.

Dividend Declaration

In addition to its earnings report, Texas Instruments recently announced a quarterly dividend. Shareholders of record as of Friday, January 31st, will receive a dividend of $1.36, to be paid on Tuesday, February 11th. This equates to an annual dividend of $5.44, reflecting a yield of 2.71%. It's worth noting that Texas Instruments has a dividend payout ratio (DPR) of 101.12%.

Insider Activity

Recent insider trading activity at Texas Instruments has shown some selling from company executives. Director Ronald Kirk sold 10,539 shares on November 25th at an average price of $203.33, totaling about $2.14 million. Post-sale, he retains ownership of 14,323 shares valued at approximately $2.91 million. Similarly, Director Robert E. Sanchez sold 9,990 shares on October 25th at an average price of $208.80, totaling around $2.09 million. He currently controls 20,461 shares, valued at $4.27 million. Collectively, insiders own 0.68% of the company's stock.

Analyst Opinions

Various research agencies have weighed in on Texas Instruments following the earnings announcement. Cantor Fitzgerald maintained a "neutral" rating with a price target of $200.00. Benchmark issued a "buy" rating with a target of $230.00, while Morgan Stanley reduced its target from $154.00 to $167.00, assigning an "underweight" rating. On the other hand, Rosenblatt Securities reiterated a "buy" rating with a target price of $250.00, and Evercore ISI raised their target from $268.00 to $298.00, maintaining an "outperform" rating. Currently, the consensus rating stands at "Hold" with an average price target of $210.45, reflecting a balanced outlook from analysts.

About Texas Instruments

Texas Instruments Incorporated is a leader in the design, manufacturing, and sale of semiconductors, catering to electronics designers and manufacturers both nationally and globally. The company operates primarily through its Analog and Embedded Processing segments, focusing on delivering power products that manage power requirements across various voltage levels.

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