On March 21, 2023 at 15:03:04 ET an unusually large $1,147.00K block of Put contracts in Texas Instruments (TXN) was bought, with a strike price of $165.00 / share, expiring in 304 days (on January 19, 2024). Fintel tracks all large options trades, and the premium spent on this trade was 2.83 sigmas above the mean, placing it in the 99.76 percentile of all recent large trades made in TXN options.

This trade was first picked up on Fintel’s real time Unusual Option Trades tool, where unusual option trades are highlighted.

Analyst Price Forecast Suggests 4.44% Upside

As of March 21, 2023, the average one-year price target for Texas Instruments is $187.12. The forecasts range from a low of $128.27 to a high of $241.50. The average price target represents an increase of 4.44% from its latest reported closing price of $179.16.

See our leaderboard of companies with the largest price target upside.

The projected annual revenue for Texas Instruments is $18,617MM, a decrease of 7.05%. The projected annual non-GAAP EPS is $8.11.

What is the Fund Sentiment?

There are 3490 funds or institutions reporting positions in Texas Instruments. This is an increase of 100 owner(s) or 2.95% in the last quarter. Average portfolio weight of all funds dedicated to TXN is 0.64%, a decrease of 3.05%. Total shares owned by institutions increased in the last three months by 0.63% to 894,513K shares. The put/call ratio of TXN is 0.80, indicating a bullish outlook.

What are Large Shareholders Doing?

VTSMX – Vanguard Total Stock Market Index Fund Investor Shares holds 27,582K shares representing 3.04% ownership of the company. In it’s prior filing, the firm reported owning 27,274K shares, representing an increase of 1.12%. The firm decreased its portfolio allocation in TXN by 0.31% over the last quarter.

Wellington Management Group Llp holds 27,111K shares representing 2.99% ownership of the company. In it’s prior filing, the firm reported owning 30,513K shares, representing a decrease of 12.55%. The firm decreased its portfolio allocation in TXN by 10.71% over the last quarter.

Bank Of America holds 24,315K shares representing 2.68% ownership of the company. In it’s prior filing, the firm reported owning 24,674K shares, representing a decrease of 1.48%. The firm decreased its portfolio allocation in TXN by 99.90% over the last quarter.

Jpmorgan Chase & holds 21,470K shares representing 2.37% ownership of the company. In it’s prior filing, the firm reported owning 21,429K shares, representing an increase of 0.19%. The firm decreased its portfolio allocation in TXN by 1.82% over the last quarter.

VFINX – Vanguard 500 Index Fund Investor Shares holds 20,981K shares representing 2.32% ownership of the company. In it’s prior filing, the firm reported owning 20,713K shares, representing an increase of 1.28%. The firm decreased its portfolio allocation in TXN by 0.39% over the last quarter.

Texas Instruments Declares $1.24 Dividend

On January 19, 2023 the company declared a regular quarterly dividend of $1.24 per share ($4.96 annualized). Shareholders of record as of January 31, 2023 received the payment on February 14, 2023. Previously, the company paid $1.24 per share.

At the current share price of $179.16 / share, the stock’s dividend yield is 2.77%. Looking back five years and taking a sample every week, the average dividend yield has been 2.68%, the lowest has been 2.07%, and the highest has been 3.85%. The standard deviation of yields is 0.35 (n=236).

The current dividend yield is 0.26 standard deviations above the historical average.

Additionally, the company’s dividend payout ratio is 0.51. The payout ratio tells us how much of a company’s income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company’s income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend – not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.

The company’s 3-Year dividend growth rate is 0.38%, demonstrating that it has increased its dividend over time.

Texas Instruments Background Information
(This description is provided by the company.)

Texas Instruments Incorporated is a global semiconductor company that designs, manufactures, tests and sells analog and embedded processing chips for markets such as industrial, automotive, personal electronics, communications equipment and enterprise systems. Its passion to create a better world by making electronics more affordable through semiconductors is alive today, as each generation of innovation builds upon the last to make our technology smaller, more efficient, more reliable and more affordable – making it possible for semiconductors to go into electronics everywhere. It thinks of this as Engineering Progress. It’s what it does and has been doing for decades.

This article originally appeared on Fintel

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