Texas Instruments (NASDAQ:TXN) Receives Lower Rating From Bernstein. What’s The Reasoning Behind This Move?

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Texas Instruments (NASDAQ:TXN) Receives a Downgrade

In a recent report released on 18 December, Bernstein announced that they will be downgrading shares of Texas Instruments (NASDAQ:TXN) from a Outperform to a Mkt Perform rating.

From a total of 30 analysts covering Texas Instruments (NASDAQ:TXN) stock, 0 rate it a ”Buy”, 0 a “Sell”, and 0 a ”Hold”. This means that NaN of the ratings are positive. The highest target price is $70 while the lowest target price is $47. The mean of all analyst targets is $58.7 with a 1.82% above today’s ($55.53) stock price. Texas Instruments was the topic of 20 analyst reports since July 24, 2015 according to the firm StockzIntelligence Inc. Oppenheimer upgraded shares on December 15 to “Outperform” rating. FBR Capital maintained shares with “Mkt Perform” rating and $58 target share price in a report from an October 22. B. Riley & Co downgraded TXN stock in a recent report from October 22 to “Neutral” rating. Macquarie Research upgraded the rating on August 10. Macquarie Research has a “Neutral” rating and a $60 price target on shares. Finally, RBC Capital Markets maintained the stock with “Outperform” rating in a report issued on an October 22.

Approximately 2.52M shares of stock traded hands. Texas Instruments Incorporated (NASDAQ:TXN) has risen 1.65% since May 15, 2015 and is uptrending. It has outperformed by 5.46% the S&P500.

The overall sentiment of institutions has increased to 0.96 in Q2 2015. Its up 0.16, from 0.8 in 2015Q2. The ratio increased, as 81 institutions have sold all the shares of Texas Instruments Incorporated that they owned while 283 funds have taken shares off the table. 65 funds have purchased shares for the first time while 286 added to their positions. These institutions now hold 799.64 million shares or 7.63% less than the 865.66 million shares they owned in 2015Q2.

The Fund Northside Capital Management Llc currently is holding shares equating to 14.94% of its total portfolio in Texas Instruments Incorporated representing a total of 396,423 shares. Another fund,Heathbridge Capital Management Ltd., is holding a total of 491,300 shares equating to 6.67% of their holdings. Additionally, Ruffer Llp has a 2.01 million share stake in Texas Instruments Incorporated which represents 4.26% of their total portfolio. The Fund, Campbell Newman Asset Management Inc, based out of Wisconsin, has also built up a stake in the stock, which represents a total of 3.42% of their total portfolio. Finally Sound Shore Management Inc Ct, a fund which is based in the state of Connecticut reported a total holdings of 3.52 million shares.

Insider activity is a very important aspect to track on any stock. Going back to April 28, 2015, shareholders of Texas Instruments Incorporated have witnessed 0 insider buys, and a total of 1 sale equating to a net activity of approximately $1.10 million . Cox Carrie Smith sold 22,000 shares worth approximately $1.10M. Carp Daniel A sold 15,000 shares worth approximately $825,080.

Texas Instruments Incorporated designs, makes and sells semiconductors to electronics designers and manufacturers across the world. The company has a market cap of $58.81 billion. The Firm operates through two divisions: Analog and Embedded Processing. It has 19.93 P/E ratio. The Company’s Analog segment includes the following product lines: High Volume Analog & Logic, Power Management, High Performance Analog and Silicon Valley Analog.

According to Zacks Investment Research, “Texas Instruments, Inc. is a global semiconductor company and one of the world’s leading designers and suppliers of digital signal processors and analog integrated circuits, the engines driving the digitization of electronics. These two types of semiconductor products work together in digital electronic devices such as digital cellular phones. Other semiconductor products include standard logic, application- specific integrated circuits, reduced instruction-set computing microprocessors, microcontrollers and digital imaging devices.”

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