Do Hedge Funds and Insiders Love Texas Instruments Incorporated (TXN)?

In today’s marketplace, there are a multitude of methods shareholders can use to analyze stocks. A couple of the most under-the-radar are hedge fund and insider trading movement. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the elite hedge fund managers can outpace their index-focused peers by a superb margin (see just how much).

Just as necessary, optimistic insider trading activity is another way to look at the stock market universe. As the old adage goes: there are a number of incentives for a corporate insider to cut shares of his or her company, but only one, very simple reason why they would behave bullishly. Several empirical studies have demonstrated the market-beating potential of this method if piggybackers understand where to look (learn more here).

Now that that’s out of the way, we’re going to examine the newest info about Texas Instruments Incorporated (NASDAQ:TXN).

Hedge fund activity in Texas Instruments Incorporated (NASDAQ:TXN)

Heading into Q3, a total of 24 of the hedge funds we track were long in this stock, a change of 4% from one quarter earlier. With hedge funds’ sentiment swirling, there exists a select group of notable hedge fund managers who were upping their holdings significantly.

When using filings from the hedgies we track, Natixis Global Asset Management’s Harris Associates had the most valuable position in Texas Instruments Incorporated (NASDAQ:TXN), worth close to $691.9 million, accounting for 1.5% of its total 13F portfolio. Coming in second is Wallace R. Weitz & Co., managed by Wallace Weitz, which held a $98 million position; 4% of its 13F portfolio is allocated to the stock. Some other peers that are bullish include Bill Miller’s Legg Mason Capital Management, Israel Englander’s Millennium Management and Phill Gross and Robert Atchinson’s Adage Capital Management.

With a general bullishness amongst the titans, specific money managers have jumped into Texas Instruments Incorporated (NASDAQ:TXN) headfirst. Wallace R. Weitz & Co., managed by Wallace Weitz, established the most valuable position in Texas Instruments Incorporated (NASDAQ:TXN). Wallace R. Weitz & Co. had 98 million invested in the company at the end of the quarter. Bill Miller’s Legg Mason Capital Management also initiated a $59.2 million position during the quarter. The other funds with new positions in the stock are Israel Englander’s Millennium Management, Phill Gross and Robert Atchinson’s Adage Capital Management, and Daniel S. Och’s OZ Management.

How have insiders been trading Texas Instruments Incorporated (NASDAQ:TXN)?

Insider buying made by high-level executives is at its handiest when the company in focus has experienced transactions within the past six months. Over the last six-month time period, Texas Instruments Incorporated (NASDAQ:TXN) has seen zero unique insiders buying, and zero insider sales (see the details of insider trades here).

We’ll check out the relationship between both of these indicators in other stocks similar to Texas Instruments Incorporated (NASDAQ:TXN). These stocks are STMicroelectronics N.V. (ADR) (NYSE:STM), NXP Semiconductors NV (NASDAQ:NXPI), Avago Technologies Ltd (NASDAQ:AVGO), Maxim Integrated Products Inc. (NASDAQ:MXIM), and Intel Corporation (NASDAQ:INTC). This group of stocks are the members of the semiconductor – broad line industry and their market caps resemble TXN’s market cap.

Using the results shown by our analyses, regular investors should always track hedge fund and insider trading sentiment, and Texas Instruments Incorporated (NASDAQ:TXN) is an important part of this process.

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