Texas Instruments (TXN) Receives a Rating Update from a Top Analyst


In a report released today, Craig Ellis from B.Riley FBR maintained a Hold rating on Texas Instruments (NASDAQ: TXN), with a price target of $123. The company’s shares opened today at $110.50.

Ellis said:

“We view the moves as a modest, if at least somewhat expected, positive. Shares rose 1% AMC. More specifically, the dividend increases from $0.62 to $0.77 per share or $3.08 per year to offer a well above market 2.9% forward yield. Quarterly payments will rise from $605M to $750M and consume $3.0B in cash annually, or 60% of T8-qtr FCF. We are not totally surprised since on 7/25 we offered four reasons for a +10-20% 3Q18 jump (“Beats and Raises as Performance a Plus for Peers…”) though the magnitude is higher than we expected and matches 3Q17’s lift. We incorporated a 15% increase in our prior FCF modeling, so versus that forecast incremental quarterly cash use is about $50M/50% greater.”

According to TipRanks.com, Ellis is a top 25 analyst with an average return of 30.6% and a 69.1% success rate. Ellis covers the Consumer Goods sector, focusing on stocks such as Sequans Communications S A, Axcelis Technologies, and Silicon Laboratories.

The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Texas Instruments with a $128 average price target.

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Based on Texas Instruments’ latest earnings release for the quarter ending June 30, the company reported a quarterly revenue of $4.02 billion and net profit of $1.39 billion. In comparison, last year the company earned revenue of $3.69 billion and had a net profit of $1.05 billion.

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