Traders Buy Large Volume of Call Options on Texas Instruments (NASDAQ:TXN)

Texas Instruments Incorporated (NASDAQ:TXN) was the target of unusually large options trading on Monday. Stock investors acquired 32,643 call options on the company. This represents an increase of approximately 108% compared to the typical daily volume of 15,724 call options.

Texas Instruments Stock Performance

Shares of Texas Instruments stock opened at $182.67 on Wednesday. The firm has a market capitalization of $166.32 billion, a P/E ratio of 28.50, a price-to-earnings-growth ratio of 3.81 and a beta of 1.01. The company has a current ratio of 4.91, a quick ratio of 3.76 and a debt-to-equity ratio of 0.76. The business’s fifty day simple moving average is $171.38 and its 200 day simple moving average is $163.58. Texas Instruments has a 12 month low of $139.48 and a 12 month high of $188.12.

Texas Instruments (NASDAQ:TXN) last posted its earnings results on Tuesday, April 23rd. The semiconductor company reported $1.20 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.07 by $0.13. Texas Instruments had a return on equity of 35.28% and a net margin of 35.16%. The firm had revenue of $3.66 billion for the quarter, compared to the consensus estimate of $3.61 billion. During the same quarter in the prior year, the business posted $1.85 earnings per share. The business’s quarterly revenue was down 16.4% on a year-over-year basis. As a group, analysts anticipate that Texas Instruments will post 5.21 EPS for the current year.

Texas Instruments Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, May 21st. Shareholders of record on Wednesday, May 8th will be paid a $1.30 dividend. This represents a $5.20 annualized dividend and a yield of 2.85%. The ex-dividend date of this dividend is Tuesday, May 7th. Texas Instruments’s dividend payout ratio is presently 81.12%.

Insider Buying and Selling

In related news, Director Pamela H. Patsley sold 9,990 shares of the firm’s stock in a transaction that occurred on Monday, April 29th. The shares were sold at an average price of $179.12, for a total value of $1,789,408.80. Following the completion of the transaction, the director now owns 33,348 shares in the company, valued at approximately $5,973,293.76. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. In related news, Director Pamela H. Patsley sold 9,990 shares of Texas Instruments stock in a transaction that occurred on Monday, April 29th. The stock was sold at an average price of $179.12, for a total value of $1,789,408.80. Following the transaction, the director now directly owns 33,348 shares of the company’s stock, valued at $5,973,293.76. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, Director Robert E. Sanchez sold 10,539 shares of the firm’s stock in a transaction that occurred on Wednesday, May 1st. The stock was sold at an average price of $174.97, for a total transaction of $1,844,008.83. Following the transaction, the director now owns 20,461 shares of the company’s stock, valued at approximately $3,580,061.17. The disclosure for this sale can be found here. Insiders have sold 328,969 shares of company stock worth $58,427,984 in the last 90 days. Insiders own 0.68% of the company’s stock.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the company. Norges Bank bought a new stake in Texas Instruments in the 4th quarter worth approximately $1,649,592,000. Van ECK Associates Corp lifted its holdings in shares of Texas Instruments by 54.3% in the 1st quarter. Van ECK Associates Corp now owns 5,606,825 shares of the semiconductor company’s stock worth $976,765,000 after acquiring an additional 1,972,304 shares during the last quarter. Morgan Stanley boosted its stake in shares of Texas Instruments by 14.2% in the 3rd 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 in the last quarter. California Public Employees Retirement System grew its holdings in shares of Texas Instruments by 33.2% during the 4th 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 last quarter. Finally, Assenagon Asset Management S.A. raised its position in Texas Instruments by 565.4% in the 4th quarter. Assenagon Asset Management S.A. now owns 1,693,577 shares of the semiconductor company’s stock worth $288,687,000 after purchasing an additional 1,439,066 shares during the period. 84.99% of the stock is owned by institutional investors.

Wall Street Analyst Weigh In

A number of research analysts recently issued reports on the stock. KeyCorp boosted their target price on shares of Texas Instruments from $180.00 to $200.00 and gave the company an “overweight” rating in a research report on Wednesday, January 24th. Morgan Stanley upped their price target on Texas Instruments from $138.00 to $146.00 and gave the stock an “underweight” rating in a research note on Wednesday, January 24th. TD Cowen boosted their price objective on Texas Instruments from $160.00 to $175.00 and gave the company a “hold” rating in a report on Wednesday, April 24th. UBS Group upgraded Texas Instruments from a “neutral” rating to a “buy” rating and increased their target price for the stock from $170.00 to $195.00 in a report on Friday, January 19th. Finally, The Goldman Sachs Group boosted their price target on shares of Texas Instruments from $137.00 to $157.00 and gave the company a “sell” rating in a research note on Wednesday, April 24th. Three equities research analysts have rated the stock with a sell rating, eleven have assigned a hold rating and seven have issued a buy rating to the company. According to MarketBeat.com, Texas Instruments has a consensus rating of “Hold” and an average price target of $180.74.

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.