Ilan Haviv, President and CEO of Texas Instruments Inc. (NASDAQ:TXN), recently sold 25,000 shares of the company's common stock. The shares were sold at a weighted average price of $211.50, generating a total of approximately $5.29 million. The sales occurred on November 6, 2024, according to the latest SEC filing.
In addition to the sale, Haviv also exercised options to acquire 25,000 shares at a price of $79.26 per share. This transaction reflects an acquisition value of approximately $1.98 million. Following these transactions, Haviv holds 125,686 shares directly.
The filing also noted indirect ownership of 32,990 shares by Haviv's spouse. The transactions were part of Haviv's ongoing management of his holdings in the semiconductor company.
In other recent news, Texas Instruments (TI) has begun production of gallium nitride (GaN)-based power semiconductors at its Aizu, Japan facility, increasing its internal GaN manufacturing capacity by fourfold. This expansion complements the company's Dallas, Texas operations, with TI aiming to internalize more than 95% of its GaN chip production by 2030. In recent developments, 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. BofA Securities adjusted its price target for TI, reducing it to $215 from $220, maintaining a Neutral rating. The revision reflects concerns over the company's sales growth and margin pressures. BofA Securities also adjusted the 2025 earnings estimate slightly downward by 2%, setting it at $5.55 from the previous $5.69. These recent developments provide insights into the company's performance and market expectations.
InvestingPro Insights
To provide context to Ilan Haviv's recent stock transactions, it's worth examining Texas Instruments' current financial position and market performance. According to InvestingPro data, Texas Instruments boasts a substantial market capitalization of $200.71 billion, underlining its significant presence in the semiconductor 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 performance aligns with an InvestingPro Tip indicating that Texas Instruments has delivered a high return over the last year. Additionally, the stock is trading near its 52-week high, with its current price at 99.97% of that peak.
Despite these positive indicators, investors should note that Texas Instruments is trading at a high earnings multiple, with a P/E ratio of 40.58. This valuation metric suggests that the stock may be priced at a premium compared to its earnings. Another InvestingPro Tip highlights that 11 analysts have revised their earnings downwards for the upcoming period, which could signal some caution regarding near-term performance.
For those interested in dividend stocks, Texas Instruments presents an attractive profile. The company has maintained dividend payments for 54 consecutive years and currently offers a dividend yield of 2.5%. An InvestingPro Tip further reveals that Texas Instruments has raised its dividend for 21 consecutive years, demonstrating a strong commitment to shareholder returns.
These insights provide valuable context to Haviv's recent stock transactions and Texas Instruments' overall market position. InvestingPro offers 18 additional tips for Texas Instruments, providing a more comprehensive analysis for investors seeking to deepen their understanding of the company's prospects.
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