Texas Instruments (NASDAQ:TXN) stock is in the news Tuesday after Paul Singer’s Elliott Management made a massive investment in the semiconductor and electronics company.
Elliott Management has notified Texas Instruments of its $2.5 billion stake in the company. It did so while sending a note to the Board of Directors outlining its hopes for the business.
Elliott highlighted several issues with Texas Instruments in its note. That includes shareholder returns lagging behind peers. The investor wants to fix this by having the company adopt a “dynamic capacity-management strategy and introduce a free cash flow per share target of $9.00+ in 2026.”
What This Means for TXN Stock
With this note, the Texas Instruments board can expect extra pressure from Elliott Management to improve operations. That could have a positive effect on TXN stock if it’s able to meet the hedge fund’s goals. If it doesn’t, it could result in a battle between the board and the investor.
TXN stock is up slightly as of Tuesday morning with more than 3.2 million shares traded. That’s closing in on its daily average trading volume of about 5.7 million shares.
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
