Christine Witzsche, Senior Vice President at Texas Instruments Inc. (NASDAQ:TXN), executed a transaction on November 6, 2024, involving the sale of 132 shares of common stock at an average price of $211.675 per share, amounting to a total of $27,941. This transaction followed an acquisition of 132 shares through the exercise of stock options at a price of $53.94 per share, valued at $7,120. Following these transactions, Witzsche holds 17,477 shares directly.
In other recent news, Texas Instruments (TI), a leading semiconductor company, has commenced the production of gallium nitride (GaN)-based power semiconductors at its Aizu, Japan facility. This expansion quadruples TI's internal GaN manufacturing capacity, supporting the company's goal to internalize more than 95% of its GaN chip production by 2030. In addition, TI is scaling its GaN chips to higher voltages to improve power-efficiency and size in applications such as robotics and renewable energy.
TI recently reported a 9% sequential revenue increase to $4.2 billion in its Q3 2024 earnings call, 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, Texas Instruments returned $5.2 billion to shareholders, which included a 5% dividend increase.
BofA Securities 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
As Christine Witzsche's recent stock transactions at Texas Instruments Inc. (NASDAQ:TXN) draw attention, it's worth examining the company's current financial position and market performance. According to InvestingPro data, Texas Instruments boasts a substantial market capitalization of $200.71 billion, underscoring its position as a prominent player in the Semiconductors & Semiconductor Equipment industry.
The company's stock has shown remarkable strength, with a one-year price total return of 54.07% as of the latest data. This impressive performance has brought the stock price to 99.97% of its 52-week high, indicating strong investor confidence. However, with a P/E ratio of 40.58, the stock is trading at a high earnings multiple, which may raise questions about its valuation.
InvestingPro Tips highlight that Texas Instruments has maintained dividend payments for 54 consecutive years and has raised its dividend for 21 consecutive years. This consistent dividend policy may be particularly appealing to income-focused investors, especially given the current dividend yield of 2.5%.
Despite these positive indicators, it's important to note that 11 analysts have revised their earnings downwards for the upcoming period, and the company's revenue is expected to decline in the current year. These factors suggest that Texas Instruments may face some headwinds in the near term.
For investors seeking a more comprehensive analysis, InvestingPro offers 18 additional tips for Texas Instruments, providing a deeper understanding of the company's financial health and market position.
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