Activist Elliott commends Texas Instruments on capital-allocation update

Prominent activist investor Elliott Investment Management commended Texas Instruments (NASDAQ:TXN) on its capital allocation update.

“We commend Texas Instruments on today’s capital-allocation update, which re-affirms TI’s long-standing commitment to shareholders that long-term growth of free cash flow per share is the Company’s true north,” Elliott Managing Partner’s Jesse Cohn and Partner Jason Genrich said in a statement on Tuesday.

The comments come after Elliott disclosed a $2.5 billion stake in the analog semiconductor firm in late May and called for the company to increase its free cash flow.

“Texas Instruments presented a path to robust free cash flow generation across a range of revenue scenarios, including a path to $12 per share of free cash flow in 2026,” Cohn and Genrich added in the statement.

Shares of Texas Instruments (TXN) ticked higher by 0.5% on Tuesday.