Gary Mark, the Senior Vice President of Texas Instruments Inc. (NASDAQ:TXN), has recently sold a portion of his holdings in the company. According to a recent SEC filing, Mark sold 4,377 shares of common stock on November 6, 2024, at an average price of $214.83 per share. This transaction amounted to a total value of approximately $940,295. Following the sale, Mark retains 37,926 shares in the company. This move is part of regular activity reported by company executives, reflecting changes in their personal stock holdings.
In other recent news, Texas Instruments (TI) has commenced production of gallium nitride (GaN)-based power semiconductors at its Aizu, Japan facility, expanding its internal GaN manufacturing capacity fourfold. The company aims to internalize over 95% of its GaN chip production by 2030. TI's new manufacturing capacity supports environmental sustainability by using less water, energy, and raw materials.
In financial news, TI 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, TI 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. 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
Gary Mark's recent sale of Texas Instruments (NASDAQ:TXN) shares comes at a time when the company's stock is trading near its 52-week high, according to InvestingPro data. This aligns with the company's strong market performance, as evidenced by its 54.07% price total return over the past year.
InvestingPro Tips highlight that Texas Instruments has raised its dividend for 21 consecutive years, demonstrating a commitment to shareholder returns. This consistent dividend growth, coupled with a current dividend yield of 2.5%, may be attractive to income-focused investors despite the recent insider sale.
However, it's worth noting that 11 analysts have revised their earnings downwards for the upcoming period, which could indicate some caution about the company's near-term prospects. This sentiment is reflected in the expectation that net income may drop this year, as another InvestingPro Tip suggests.
The company's financial health appears solid, with liquid assets exceeding short-term obligations and operations maintained with a moderate level of debt. These factors could provide some reassurance to investors in light of the insider selling activity.
For readers interested in a more comprehensive analysis, InvestingPro offers 18 additional tips for Texas Instruments, providing a deeper understanding of the company's financial position and market outlook.
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