Robert E. Sanchez, a director at Texas Instruments Inc. (NASDAQ:TXN), has sold shares worth approximately $2.08 million, according to a recent SEC filing. The transaction, which took place on October 25, involved the sale of 9,990 shares of common stock at an average price of around $208.80 per share. This sale follows an exercise of stock options for the same number of shares at a price of $52.93 each, resulting in a total acquisition value of about $528,770.
Following these transactions, Sanchez's direct ownership of Texas Instruments stock stands at 20,461 shares. The sales were executed at prices ranging from $208.60 to $209.19, as per the filing details.
In other recent news, Texas Instruments (TI) has announced the commencement of gallium nitride (GaN)-based power semiconductors production at its Aizu, Japan facility, aiming to increase its internal GaN manufacturing capacity by fourfold. TI's senior vice president of Technology and Manufacturing, Mohammad Yunus, stated that the company's 200mm GaN technology has been qualified for mass production in Aizu, with an aim to internalize more than 95% of its GaN chip production by 2030.
In the realm of financial performance, TI reported a sequential revenue increase of 9% to $4.2 billion in its Q3 2024, despite an 8% year-over-year decline. The company's CFO, Rafael Lizardi, noted a gross profit of $2.5 billion and net income of $1.4 billion, equivalent to $1.47 per share. Over the past year, TI returned $5.2 billion to shareholders, which included a 5% dividend increase.
However, BofA Securities has adjusted its price target for Texas Instruments, reducing it to $215 from $220, maintaining a Neutral rating. The revision reflects concerns over the company's sales growth and margin pressures, particularly in its largest segment. The analyst from BofA Securities also adjusted the calendar year 2025 earnings estimate slightly downward by 2%, setting it at $5.55 from the previous $5.69. These are recent developments that provide insights into the company's performance and market expectations.
InvestingPro Insights
The recent insider sale by Robert E. Sanchez comes at a time when Texas Instruments (NASDAQ:TXN) is trading near its 52-week high, with the stock price at 98.46% of its peak. This aligns with an InvestingPro Tip indicating that the company is "Trading near 52-week high," which may have influenced the director's decision to sell.
Texas Instruments' financial metrics reveal a mixed picture. The company boasts a substantial market capitalization of $192.78 billion, reflecting its prominent position in the Semiconductors & Semiconductor Equipment industry. However, the company's P/E ratio of 38.92 suggests it's trading at a high earnings multiple, which is corroborated by another InvestingPro Tip.
Despite facing some headwinds, with revenue declining 13.26% over the last twelve months to $15.71 billion, Texas Instruments maintains a strong dividend profile. The company has raised its dividend for 21 consecutive years and currently offers a dividend yield of 2.64%. This commitment to shareholder returns may provide some reassurance to investors in the face of the recent insider sale.
For those seeking a more comprehensive analysis, InvestingPro offers 16 additional tips on Texas Instruments, providing deeper insights into the company's financial health and market position.
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