Shake-Up Alert: 40 Companies Facing Activist Pressure

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6. Elliot Management at Texas Instruments Incorporated (NASDAQ:TXN)

Stock Return: -3.89%

S&P 500 Return: 4.54%

Investment date: 28/05/2024

Number of hedge funds holding stakes: 49

Activist investor Elliott Investment Management revealed its investment of $2.5 billion in Texas Instruments Incorporated (NASDAQ:TXN) and urged the company to enhance its cash flow as part of its activist campaign in the semiconductor giant.

In a letter to the Texas Instruments Incorporated (NASDAQ:TXN) board, Elliott suggested implementing a “flexible capacity management approach.” Elliott said this strategy could enable Texas Instruments to reach a free cash flow of $9 per share by 2026.

The activist campaign is bearing fruit, as Texas Instruments Incorporated (NASDAQ:TXN) is already up by 20.13% for the year. On the other hand, 49 hedge funds out of 920 tracked by Insider Monkey held stakes in the company as of the end of Q1. 2024.

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