Hamlin Capital Boosts Stake in Texas Instruments by 14.2%

Hamlin Capital Management LLC has increased its holdings in Texas Instruments Incorporated (NASDAQ: TXN) by 14.2% during the second quarter of 2023, according to a report from Holdings Channel. The firm now owns approximately 1,030,894 shares of the semiconductor company after acquiring an additional 128,408 shares during this period. This investment represents about 5.0% of Hamlin Capital’s portfolio, making Texas Instruments its fourth largest holding, valued at approximately $214 million based on the latest filing with the Securities and Exchange Commission.

Several other institutional investors have also adjusted their positions in Texas Instruments. For instance, Koshinski Asset Management Inc. raised its stake by 5.6%, now holding 18,455 shares worth $3.8 million. Similarly, Hoese & Co LLP increased its position by 20.6%, bringing its total to 1,378 shares valued at $286,000. Other notable increases include Curbstone Financial Management Corp, which raised its position by 18.3%, and VELA Investment Management LLC, which boosted its stake by 22.6%. Overall, institutional investors and hedge funds own approximately 84.99% of Texas Instruments’ stock.

In related insider activity, Vice President Ahmad Bahai sold 1,500 shares on August 25, 2023, at an average price of $205.35, totaling $308,025. Following this transaction, Bahai retains 38,883 shares, valued at around $7.98 million, reflecting a 3.71% decrease in ownership. This transaction was disclosed in an official filing with the SEC.

Texas Instruments Reports Strong Earnings and Dividend Increase

Texas Instruments recently reported its quarterly earnings on July 22, 2023, revealing earnings per share (EPS) of $1.41. This figure surpassed analysts’ expectations of $1.32 by $0.09. The company recorded a net margin of 30.23% and a return on equity of 30.10%. Revenue for the quarter reached $4.45 billion, exceeding analyst estimates of $4.31 billion. This performance marked a 16.4% increase in revenue compared to the same quarter last year.

Looking ahead, Texas Instruments has set its Q3 2025 EPS guidance between $1.36 and $1.60. Analysts project that the firm will achieve an EPS of $5.35 for the current fiscal year.

In a move to reward shareholders, Texas Instruments declared a quarterly dividend of $1.42, payable on November 12, 2023, to investors of record by October 31, 2023. This marks an increase from the previous quarterly dividend of $1.36, translating to an annualized dividend of $5.68 and a yield of 3.2%. The company’s payout ratio currently stands at 99.63%.

Analyst Ratings Reflect Mixed Outlook

Recent evaluations from equities research analysts indicate varied perspectives on Texas Instruments. Robert W. Baird has raised its price target from $175 to $220 while maintaining an “outperform” rating. Conversely, Citigroup reduced its target from $260 to $235, while giving a “buy” rating. Wolfe Research upgraded their rating from “peer perform” to “outperform” with a price target of $230.

Some analysts continue to adopt a cautious approach; DZ Bank reiterated a “sell” rating with a target of $158, while TD Cowen lowered its price target from $245 to $230. Currently, two analysts rate the stock as a Strong Buy, twelve as Buy, thirteen as Hold, and five as Sell. According to data from MarketBeat.com, Texas Instruments holds an average rating of “Hold” with a consensus price target of $211.64.

Texas Instruments Incorporated designs, manufactures, and sells semiconductors to electronics designers and manufacturers globally. It operates through two primary segments: Analog and Embedded Processing, offering a range of products to manage power requirements across various voltage levels. As the company continues to adapt to market demands, its recent financial performance and strategic decisions indicate a focus on growth and shareholder value.