Insiders are Selling Shares in This Titanic Technology Company

A number of insiders at Texas Instruments, Inc. (NYSE:TXN) have been selling large blocks of stock recently.  There are 1,170,000,000 shares outstanding. See What Moved Texas Instruments Today>>

The stock has returned 7% year-to-date compare to the S&P 500‘s (NYSE:SPY) approximate 6% return.  Over the past 52 weeks the company has returned about 34% compares to the S&P 500′s 12% return.

The company is solidly profitable, reporting 2010 profit margins as follows: Net profit margin was 23.11%, operating margin was 32.32% and EBITD margin was 38.66%.  Its return on average assts was 25.3% and its return on average equity was 31.59%.

Following are details on the insider transactions:

  • Kevin J .Ritchie is Senior Vice President, Technology & Manufacturing Group.  He exercised 40,000 options at a cost of $31.30 on February 10th, 2011.  He exercised an additional 125,000 options on February 15th, 2011 at a cost of $26.50 per option.  He has recorded three sales this year: on January 31st, he sold 50,000 shares at a market price of $34.10; on February 10th, he sold 40,000 shares at a market price of $35; and on February 15th, he sold 125,000 shares at a market price of $36.  The net proceeds from these transactions were $3,040,462.  He presently holds 256,785 shares, with a market value of approximately $9 million.
  • Brian T. Crutcher is a Senior Vice President and General Manager, Embedded Processing and Custom.  He exercised 24,600 options on January 31st, at a cost of $29.74 per option.  He presently holds 289,566 shares worth approximately $10,000,000.
  • Darla H. Whitaker is Senior Vice President, Worldwide Human Resources.  She sold 15,000 shares at a market price of $34.10 on January 31st for $511,449.  She presently holds 101,858 shares worth approximately $3,500,000.
  • Teresa L. West is Senior Vice President and Manager, Communications and Investor Relations.  She sold 15,000 shares on January 31st, at a market price of $34.10 for $511.437.  She presently holds 108,234 shares worth approximately $3,800,000.
  • John J Szczsponik Jr. is Senior Vice President and Manager, Worldwide Sales and Marketing.  He sold 30,000 shares on January 31st at a market price of $34.10 for $1,022,961.  He presently holds 201,419 shares worth approximately $7,000,000.
  • Robert K. Novak, is Senior Vice President and General Manager, DLP products. He sold 4,184 shares at a market price of $34.09 for $142,617.  He presently holds 81,685 shares worth approximately $2.9 million.

Other insiders at the company include the following members of its Board of Directors and Senior Management:

  • Ralph W. Babb, Jr. is an Independent Director who is the Chairman and Chief Executive Officer of Comerica Incorporated and Comerica Bank (NYSE:CMA).  He is a member of the Audit Committee for the Board of Texas Instruments, Inc.
  • David L. Boren is an Independent Director who serves as the President of the University of Oklahoma and who previously serves as a Director of AMR Corporation (NYSE:AMR), Continental Resources, Inc. LP (NYSE:CLR), andTorchmark Corporation (NYSE:TMK).  He is a member of the Audit Committee for the Board of Texas Instruments, Inc.
  • Daniel A. Carp is an Independent Director who is Chairman of the Board and Chief Executive Officer of Eastman Kodak Company (NYSE:EK).  He also serves on the boards of Delta Airlines, Inc. (NYSE:DAL), and Norfolk Southern Corp.(NYSE:NSC).  He is a member of the Audit Committee for the Board of Texas Instruments, Inc.
  • Carrie S. Cox is an Independent Director who is the Chief Executive Officer of Humacyte, Inc.  She serves as the Chair of the Compensation Committee for the Board of Texas Instruments, Inc.  She previously served in executive positions at Pharmacia Corporation and is a director at Cardinal Health, Inc. (NYSE:CAH) andCelgene Corporation (NASDAQ:CELG).
  • David R. Goode is an Independent Director who is a member of the Compensation Committee for the Board of Texas Instruments, Inc.  He previously served as Chairman of Norfolk Southern Corp. (NYSE:NSC), and is a director at Caterpillar, Inc. (NYSE:CAT), Delta Air Lines (NYSE:DAL), and Russell Reynolds Associates, Inc.
  • Stephen P. MacMillan is an Independent Director and a member of the Compensation Committee of the Board of Texas Instruments, Inc.  He is Chairman of the Board of Stryker Corporation (NYSE:SYK).
  • Panela H. Patsley is an Independent Director who is Chair of the Audit Committee for the Board of Texas Instruments, Inc.  She is the Chairman and Chief Executive Officer of MoneyGram International, Inc. (NYSE:MGI) and previously served in executive roles at First Data Corporation (NYSE:KKR).  She is also a member of the Board of Directors at Dr Pepper Snapple Group, Inc. (NYSE:DPS).
  • Robert E. Sanchez is an Independent Director who is a member of the Audit Committee for the Board of Directors of Texas Instruments, Inc.  He is an executive at Ryder Systems Inc. (NYSE:R).
  • Wayne R. Sanders is an Independent Director who is a member of the Governance and Stockholder Relations Committee of the Board of Directors of Texas Instruments, Inc.  He is the Chairman of Dr Pepper Snapple Group, Inc.(NYSE:DPS) and serves on the boards of Kimberly-Clark Corporation(NYSE:KMB) and Belo Corporation (NYSE:BLC).
  • Ruth J. Simmons is an Independent Director who is the Chair of the Governance and Stockholder Relations Committee for the Board of Directors of Texas Instruments, Inc.  She is also the President of Brown University.
  • Richard K. Templeton is the Chairman, President and Chief Executive Officer of Texas Instruments, Inc.
  • Christine Todd Whitman is an Independent Director who is a member of the Governance and Stockholder Relations Committee.  She is a former governor of New Jersey and presently a director of the Council of Foreign Relations, S.C. Johnson & Son, Inc.  and United Technologies Corp. (NYSE:UTX).
  • Steve Anderson is the Senior Vice President and Worldwide Manager, High-Performance Analog.

About the company: Texas Instruments Incorporates is a global semiconductor company that designs and supplies analog technologies, digital signal processing (DSP) and microcontroller (MCU) semiconductors.  The Company also operates materials and controls, and educational and productivity solutions businesses.  Texas Instruments has manufacturing or sales operations in countries around the world. Competitors to Texas Instruments include Intel (NASDAQ:INTC), Analog Devices (NYSE:ADI), Maxim Integrated (NASDAQ:MXIM), Broadcom (NASDAQ:BRCM), Intersil (NASDAQ:ISIL), NVDIA (NASDAQ:NVDA) and Fairchild Semiconductor (NYSE:FCS).

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