{"id":2951,"date":"2024-05-28T13:50:39","date_gmt":"2024-05-28T13:50:39","guid":{"rendered":"https:\/\/stoxpo.com\/?p=2951"},"modified":"2024-05-28T13:50:40","modified_gmt":"2024-05-28T13:50:40","slug":"elliott-management-pushes-texas-instruments-for-more-dynamic-capital-strategy","status":"publish","type":"post","link":"https:\/\/stoxpo.com\/index.php\/2024\/05\/28\/elliott-management-pushes-texas-instruments-for-more-dynamic-capital-strategy\/","title":{"rendered":"Elliott Management Pushes Texas Instruments for More Dynamic Capital Strategy"},"content":{"rendered":"\n<h4 class=\"wp-block-heading\">Hedge Fund Advocates for Improved Free Cash Flow with Flexible Capex Plan<\/h4>\n\n\n\n<p>Elliott Management, the $65 billion hedge fund known for its shareholder activism, has made a significant $2.5 billion investment in Texas Instruments (TXN). In a bid to enhance shareholder returns, Elliott is urging TI to adopt a more flexible capital expenditure (Capex) plan to improve free cash flow.<\/p>\n\n\n\n<p>In a detailed 13-page letter, Elliott proposes a \u201cdynamic capacity-management strategy\u201d for TI, aiming to boost free cash flow to $9 a share by 2026, significantly above current analyst consensus. The news led to a 3% rise in TI shares.<\/p>\n\n\n\n<p>Elliott criticizes TI&#8217;s rigid adherence to a Capex plan introduced in 2022, which has led to a reduction in free cash flow from $6.40 a share in 2022 to an expected $1.83 a share this year. The activist fund argues that this strategy has alienated investors and negatively impacted TI&#8217;s stock performance.<\/p>\n\n\n\n<p>The 2022 plan, which increased Capex spending to $5 billion annually from 2023-2026, aimed to double TI&#8217;s annual revenues to $30 billion. However, Elliott contends that the current demand cycle does not support such high capacity levels, predicting that capacity could exceed revenue expectations by 50% by 2026 and 2030.<\/p>\n\n\n\n<p>Elliott\u2019s letter, signed by Jesse Cohn and Jason Genrich, suggests TI should either justify its capacity expansion or adopt a more dynamic Capex approach, allowing for better alignment with market demand. While the letter maintains a constructive tone, it emphasizes the need for TI&#8217;s board to uphold prudent capital discipline.\\<\/p>\n\n\n\n<p>You might like this article:<a href=\"https:\/\/stoxpo.com\/index.php\/2024\/05\/28\/breakthrough-in-feline-health-vivanis-okv-119-implant-shows-promise\/\"><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-cyan-blue-color\">Breakthrough in Feline Health: Vivani\u2019s OKV-119 Implant Shows Promise<\/mark><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Hedge Fund Advocates for Improved Free Cash Flow with Flexible Capex Plan Elliott Management, the $65 billion hedge fund known for its shareholder activism, has made a significant $2.5 billion investment in Texas Instruments (TXN). In a bid to enhance shareholder returns, Elliott is urging TI to adopt a more flexible capital expenditure (Capex) plan [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":2953,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","jnews-multi-image_gallery":[],"jnews_single_post":{"subtitle":"","format":"standard","video":"","gallery":"","source_name":"","source_url":"","via_name":"","via_url":"","override_template":"0","override":[{"template":"8","single_blog_custom":"","parallax":"1","fullscreen":"1","layout":"right-sidebar-narrow","sidebar":"author","second_sidebar":"single-right","sticky_sidebar":"1","share_position":"top","share_float_style":"share-monocrhome","show_share_counter":"0","show_view_counter":"0","show_featured":"1","show_post_meta":"1","show_post_author":"1","show_post_author_image":"0","show_post_date":"1","post_date_format":"default","post_date_format_custom":"Y\/m\/d","show_post_category":"1","show_post_reading_time":"1","post_reading_time_wpm":"300","show_zoom_button":"0","zoom_button_out_step":"2","zoom_button_in_step":"3","show_post_tag":"1","show_prev_next_post":"1","show_popup_post":"1","number_popup_post":"1","show_author_box":"0","show_post_related":"1","show_inline_post_related":"0"}],"override_image_size":"0","image_override":[{"single_post_thumbnail_size":"crop-500","single_post_gallery_size":"crop-500"}],"trending_post":"0","trending_post_position":"meta","trending_post_label":"Trending","sponsored_post":"0","sponsored_post_label":"Sponsored by","sponsored_post_name":"","sponsored_post_url":"","sponsored_post_logo_enable":"0","sponsored_post_logo":"","sponsored_post_desc":"","disable_ad":"0"},"jnews_primary_category":{"id":"","hide":""},"jnews_social_meta":{"fb_title":"","fb_description":"","fb_image":"","twitter_title":"","twitter_description":"","twitter_image":""},"jnews_override_counter":{"override_view_counter":"0","view_counter_number":"0","override_share_counter":"0","share_counter_number":"0","override_like_counter":"0","like_counter_number":"0","override_dislike_counter":"0","dislike_counter_number":"0"},"jnews_post_split":{"enable_post_split":"0","post_split":[{"template":"1","tag":"h2","numbering":"asc","mode":"normal","first":"0","enable_toc":"0","toc_type":"normal"}]}},"categories":[362,312],"tags":[421,416,418],"coauthors":[453],"_links":{"self":[{"href":"https:\/\/stoxpo.com\/index.php\/wp-json\/wp\/v2\/posts\/2951"}],"collection":[{"href":"https:\/\/stoxpo.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stoxpo.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stoxpo.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/stoxpo.com\/index.php\/wp-json\/wp\/v2\/comments?post=2951"}],"version-history":[{"count":1,"href":"https:\/\/stoxpo.com\/index.php\/wp-json\/wp\/v2\/posts\/2951\/revisions"}],"predecessor-version":[{"id":2954,"href":"https:\/\/stoxpo.com\/index.php\/wp-json\/wp\/v2\/posts\/2951\/revisions\/2954"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/stoxpo.com\/index.php\/wp-json\/wp\/v2\/media\/2953"}],"wp:attachment":[{"href":"https:\/\/stoxpo.com\/index.php\/wp-json\/wp\/v2\/media?parent=2951"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stoxpo.com\/index.php\/wp-json\/wp\/v2\/categories?post=2951"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stoxpo.com\/index.php\/wp-json\/wp\/v2\/tags?post=2951"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/stoxpo.com\/index.php\/wp-json\/wp\/v2\/coauthors?post=2951"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}