Susquehanna Lowers Texas Instruments Target Price to $240.00

Texas Instruments (NASDAQ:TXN) recently experienced a shift in its target price as Susquehanna, a prominent research firm, adjusted it down from $250.00 to $240.00. This update was shared with investors on Monday, as reported by Benzinga. Despite this downward adjustment, Susquehanna maintains a positive rating for the semiconductor company’s stock, indicating confidence in its long-term performance.

In addition to Susquehanna's revision, other brokerages have weighed in on Texas Instruments shares. For instance, Robert W. Baird increased its price target for the company from $175.00 to $200.00, while assigning a 'neutral' rating in a report released on July 24th. On August 21st, Citigroup raised its rating from 'neutral' to 'buy' and increased the target price from $200.00 to $235.00. Barclays also adjusted its expectations, lifting its price objective from $190.00 to $210.00, with an 'equal weight' rating.

Meanwhile, Truist Financial lowered their target price from $203.00 to $198.00 while placing a 'hold' rating on the stock on August 21st. Furthermore, Rosenblatt Securities reaffirmed a 'buy' rating with a price objective set at $250.00 in a note released on October 14th. The sentiment among analysts shows a mix, with three rating the stock as a sell, eleven as hold, and nine as buy. According to MarketBeat.com, Texas Instruments has a consensus rating of 'Hold' and an average price target of $206.95.

Texas Instruments Stock Performance

Texas Instruments shares started trading at $201.74 on Monday. The company has a substantial market capitalization of $184.20 billion and a P/E ratio of 35.02, indicating the market's expectations about its growth relative to its earnings. The stock has seen a price range over the past year, with a low of $139.48 and a high of $214.66. Other important financial metrics include a debt-to-equity ratio of 0.75, a current ratio of 4.62, and a quick ratio of 3.49. The stock's performance is reflected in its moving averages, specifically a 50-day moving average of $203.43 and a 200-day moving average of $194.99.

Latest Earnings Report

On October 22nd, Texas Instruments released its quarterly earnings, reporting earnings per share (EPS) of $1.47, surpassing the analysts’ consensus estimate of $1.38 by $0.09. The company recorded a net margin of 33.01% and an impressive return on equity of 31.10%. With revenue hitting $4.15 billion for the quarter, which slightly exceeded predictions of $4.12 billion, these results indicate resilience despite an 8.4% year-over-year revenue decline. Analysts are currently projecting an EPS of 5.11 for the current year.

Dividend Enhancement

Texas Instruments also announced an increase in its quarterly dividend, which is set to be paid on November 12th. Shareholders who are on record by October 31st will receive a dividend of $1.36, up from a previous $1.30 per share. This dividend change translates to an annual payout of $5.44, offering a yield of 2.70%. The company maintains a payout ratio of 90.28%, suggesting a strong commitment to returning value to shareholders.

Insider Transactions

In recent insider activity, VP Shanon J. Leonard sold 2,816 shares on August 23rd, at an average price of $208.91, totaling about $588,290.56. Following this transaction, Leonard retained ownership of 24,112 shares valued at $5,037,237.92. Similarly, on August 26th, VP Mohammad Yunus sold 3,778 shares at an average price of $208.90, amounting to $789,224.20. These transactions reflect executives' ongoing management of their stock holdings. In total, insiders sold 15,558 shares worth approximately $3,255,323 over the past three months, with corporate insiders owning about 0.68% of the company.Texas, Instruments, Market