Yunus Mohammad, Senior Vice President at Texas Instruments Inc. (NASDAQ:TXN), reported significant stock transactions on November 7. Mohammad sold 8,358 shares of the company's common stock, totaling approximately $1.81 million. The shares were sold at a weighted average price of $216.9353, with individual sale prices ranging from $216.74 to $217.15.
In addition to the sale, Mohammad also exercised stock options to acquire 2,692 shares at $110.15 per share and 5,666 shares at $104.41 per share. These transactions, classified as acquisitions, amounted to a total value of $888,110.
Following these transactions, Mohammad holds 28,924 shares of Texas Instruments directly, with an additional 1,117 shares indirectly held by his spouse.
In other recent news, Texas Instruments (TI) and the semiconductor industry have been in the spotlight. Citi analysts have expressed optimism for the sector, predicting a 9% global sales increase in 2025. They recommend investors start accumulating positions in semiconductor stocks, including Texas Instruments. TI has also initiated the production of gallium nitride (GaN)-based power semiconductors at its Aizu, Japan facility, aiming to internalize more than 95% of its GaN chip production by 2030.
On the financial front, TI reported a mixed Q3 2024 earnings with a 9% sequential revenue increase to $4.2 billion, 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, including a 5% dividend increase.
However, BofA Securities has revised its price target for Texas Instruments, reducing it to $215 from $220 while maintaining a Neutral rating. The revision reflects concerns over the company's sales growth and margin pressures, particularly in its largest segment. These developments provide insights into the recent performance and market expectations for Texas Instruments.
InvestingPro Insights
Texas Instruments Inc. (NASDAQ:TXN) continues to demonstrate its financial strength and market position, as evidenced by recent InvestingPro data and tips. The company's market capitalization stands at an impressive $187.62 billion, underscoring its significant presence in the Semiconductors & Semiconductor Equipment industry.
One of the most notable InvestingPro Tips is that Texas Instruments has raised its dividend for 21 consecutive years, reflecting a strong commitment to shareholder returns. This is particularly relevant in light of the recent stock transactions by Senior Vice President Yunus Mohammad, as it indicates a long-term focus on creating value for investors.
The company's financial health is further emphasized by its liquid assets exceeding short-term obligations, as highlighted by another InvestingPro Tip. This strong liquidity position provides Texas Instruments with financial flexibility and stability, which is crucial in the dynamic semiconductor industry.
Despite facing some headwinds, such as analysts anticipating a sales decline in the current year, Texas Instruments has shown resilience. The company's stock has demonstrated a high return over the last year, with a one-year price total return of 50.03% as of the latest data.
It's worth noting that Texas Instruments is trading near its 52-week high, with its current price at 93.36% of the 52-week high. This performance aligns with the company's strong market position and investor confidence.
For readers interested in a more comprehensive analysis, InvestingPro offers additional tips and insights. In fact, there are 13 more InvestingPro Tips available for Texas Instruments, providing a deeper understanding of the company's financial health and market prospects.
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