Texas Instruments: 3 Different Insiders Have Sold Shares This Month

| About: Texas Instruments (TXN)

Summary

3 insiders sold Texas Instruments stock within one month.

The stock was not purchased by any insiders in the month of intensive selling.

All 3 of these insiders decreased their holdings by more than 10%.

Texas Instruments (NYSE:TXN) engages in the design, manufacture, sale of semiconductors to electronics designers and manufacturers worldwide.

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Insider selling during the last 30 days

Here is a table of Texas Instruments' insider activity during the last 30 days.

Name Title Trade Date Shares Sold Rule 10b5-1 Current Ownership Decrease In Ownership
Richard Templeton CEO April 25 500,000 No 1,314,722 shares 27.6%
Pamela Patsley Director April 25 15,000 No 23,293 shares 39.2%
Brian Crutcher SVP April 25 100,000 No 452,144 shares + 200,000 options 13.3%
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There have been 615,000 shares sold by insiders during the last 30 days.

Insider selling by calendar month

Here is a table of Texas Instruments' insider activity by calendar month.

Month Insider selling / shares Insider buying / shares
April 2014 615,000 0
March 2014 0 0
February 2014 112,802 0
January 2014 981,010 0
December 2013 0 0
November 2013 27,550 0
October 2013 303,125 0
September 2013 35,000 0
August 2013 50,100 0
July 2013 1,265,625 0
June 2013 0 0
May 2013 905,102 0
April 2013 627,175 0
March 2013 5,000 0
February 2013 448,401 0
January 2013 629,847 0
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There have been 6,005,737 shares sold, and there have been zero shares purchased by insiders since January 2013.

Financials

Texas Instruments reported the first-quarter financial results on April 23 with the following highlights:

Revenue $3.0 billion
Net income $487 million
Cash $4.0 billion
Debt $5.7 billion
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The three insiders sold their shares after these results.

Outlook

Texas Instruments' guidance for the second quarter is as follows:

Revenue $3.14-$3.40 billion
EPS $0.55-$0.63
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Competition

Texas Instruments' competitors include Qualcomm (NASDAQ:QCOM), and STMicroelectronics (NYSE:STM). Here is a table comparing these companies.

Company TXN QCOM STM
Market Cap: 50.24B 131.24B 8.11B
Employees: 32,209 31,000 45,390
Qtrly Rev Growth (yoy): 0.02 0.10 -0.07
Revenue: 12.20B 25.47B 8.08B
Gross Margin: 0.52 0.60 0.32
EBITDA: 4.20B 8.49B 669.00M
Operating Margin: 0.24 0.29 -0.03
Net Income: 2.13B 6.39B -500.00M
EPS: 1.91 3.91 -0.56
P/E: 24.26 19.86 N/A
PEG (5 yr expected): 1.91 1.00 7.39
P/S: 4.31 5.17 1.02
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Texas Instruments has the second-highest P/S ratio among these three companies.

Here is a table of these competitors' insider activities this year.

Company Insider buying / shares Insider selling / shares
QCOM 0 1,240,506
STM N/A N/A
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Qualcomm has also seen intensive insider selling during the last 30 days.

Conclusion

There have been three different insiders selling Texas Instruments, and there have not been any insider buying Texas Instruments during the last 30 days. All three of these insiders decreased their holdings by more than 10%. Texas Instruments has an insider ownership of 0.06%.

Before going short Texas Instruments, I would like to get a bearish confirmation from the Point & Figure chart. The main reason for the proposed short entry is the intensive insider-selling activity.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.