In a recent transaction, Pamela H. Patsley, a director at Texas Instruments Incorporated (NASDAQ:TXN), sold a significant amount of the company's stock. The sale, which occurred on August 29, 2024, involved 1,913 shares at an average price of $211.9004 and 4,152 shares at an average price of $212.6741, totaling approximately $1,288,388.
The transaction details, disclosed in a Form 4 filing with the Securities and Exchange Commission, show a range of sale prices for the shares disposed of by Patsley. The sales were executed at prices between $211.26 to $212.22 and $212.27 to $212.86, as indicated by the footnotes in the filing.
On the same day, Patsley also acquired 6,065 shares of Texas Instruments common stock at a price of $79.26 per share, amounting to a total transaction value of $480,711. This acquisition is linked to the exercise of options that became exercisable in equal annual installments starting from January 26, 2018.
Following these transactions, Patsley's ownership in Texas Instruments stands at 33,348 shares of common stock, as per the post-transaction amounts listed in the filing.
Texas Instruments, headquartered in Dallas, Texas, is a global semiconductor company that operates in the manufacturing sector. The company is well-known for its development and commercialization of semiconductor and computer technology.
Investors and the market often monitor the buying and selling activities of company insiders like directors, as these can provide insights into their perspective on the company's current valuation and future prospects.
In other recent news, Texas Instruments has outlined its capital expenditure (CapEx) projections for fiscal year 2026 and beyond, including details about its 300mm capacity expansion plans. The company also updated its Depreciation and Amortization schedule up to the year 2026, expecting to benefit from the federal CHIPS Act and the Investment Tax Credit (ITC) tax credit. Texas Instruments has also received a reiterated Buy rating from Benchmark and an Overweight rating from KeyBanc. However, TD Cowen and Truist Securities have maintained a Hold rating on the company's stock.
In addition, Texas Instruments has revised its CapEx spending forecast for 2026, suggesting a potential decrease to less than $5 billion, depending on market conditions. The company's projected free cash flow per share by 2026 is estimated to range from $8 to $12, surpassing the analyst consensus estimate of $6.91. The company also plans to construct three new facilities and expand its 300mm production capacity, securing up to $1.6 billion in funding from the U.S. CHIPS and Science Act for these constructions.
Furthermore, Barclays has maintained its Equalweight rating on Texas Instruments, acknowledging that the company's moderation in CapEx could be a positive step. However, there are reservations about the achievability of the company's top-line growth projections. Despite these recent developments, Barclays sees limited potential for an increase in the company's value at the current market price. These are the recent developments for Texas Instruments.
InvestingPro Insights
As Texas Instruments Incorporated (NASDAQ:TXN) sees insider activity with Pamela H. Patsley's recent stock transactions, investors may be keen to understand the company's current financial standing and future outlook. Texas Instruments, a prominent player in the semiconductor industry, is currently trading at a high earnings multiple with a P/E Ratio of 34.98 and an adjusted P/E Ratio for the last twelve months as of Q2 2024 at 35.65. This valuation reflects the market's view of the company's earnings potential but also suggests a premium pricing compared to the industry average.
Despite a challenging environment with a revenue decline of 14.5% over the last twelve months as of Q2 2024, Texas Instruments has maintained a strong gross profit margin of 59.36%, showcasing the company's ability to manage costs effectively. The company's operating income margin also stands robust at 36.17%, indicating healthy operational efficiency.
One of the notable InvestingPro Tips for Texas Instruments is the company's impressive track record of raising its dividend for 20 consecutive years, with a current dividend yield of 2.43% and a dividend growth of 4.84% over the last twelve months as of Q2 2024. This consistent return to shareholders may be particularly attractive to income-focused investors. Additionally, Texas Instruments has maintained dividend payments for an impressive 54 consecutive years, underscoring its commitment to shareholder returns even in fluctuating market conditions.
For those seeking further insights, InvestingPro offers a range of additional tips on Texas Instruments, including analysts' revisions of earnings upwards for the upcoming period, which can be found at: https://www.investing.com/pro/TXN. With 19 more InvestingPro Tips available, investors can gain a comprehensive understanding of the company's performance and potential investment opportunities.
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