Texas Instruments (NASDAQ:TXN) Stock Gets Price Target Reduction from Wells Fargo & Company

Texas Instruments (NASDAQ:TXN) had its target price cut by Wells Fargo & Company from $310.00 to $300.00 in a research note released on Tuesday morning,Benzinga reports. They currently have an equal weight rating on the semiconductor company’s stock.

Several other equities analysts also recently commented on the stock. Truist Financial upped their price objective on shares of Texas Instruments from $278.00 to $300.00 and gave the company a “hold” rating in a report on Thursday, July 23rd. Cantor Fitzgerald restated a “neutral” rating on shares of Texas Instruments in a research note on Tuesday. Benchmark upped their price target on shares of Texas Instruments from $315.00 to $360.00 and gave the company a “buy” rating in a research note on Thursday, July 23rd. TD Cowen lowered their price target on shares of Texas Instruments from $340.00 to $330.00 and set a “buy” rating on the stock in a report on Monday. Finally, Wall Street Zen upgraded shares of Texas Instruments from a “hold” rating to a “buy” rating in a research report on Saturday, July 18th. Sixteen equities research analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat, Texas Instruments has an average rating of “Hold” and an average price target of $311.39.

Texas Instruments Stock Performance

TXN opened at $279.50 on Tuesday. The company has a quick ratio of 3.44, a current ratio of 4.86 and a debt-to-equity ratio of 0.72. Texas Instruments has a 12-month low of $152.73 and a 12-month high of $334.03. The business has a 50 day moving average of $271.88 and a 200-day moving average of $279.43. The stock has a market cap of $255.25 billion, a price-to-earnings ratio of 36.92, a PEG ratio of 1.59 and a beta of 1.35.

Texas Instruments (NASDAQ:TXN) last posted its earnings results on Wednesday, October 21st. The semiconductor company reported $2.62 earnings per share for the quarter, topping analysts’ consensus estimates of $2.40 by $0.22. Texas Instruments had a return on equity of 41.79% and a net margin of 34.25%. The business had revenue of $6.05 billion for the quarter, compared to analyst estimates of $5.94 billion. During the same period in the previous year, the firm earned $1.48 EPS. The firm’s revenue was up 27.7% compared to the same quarter last year. On average, equities research analysts expect that Texas Instruments will post 8.49 earnings per share for the current year.

Texas Instruments Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, November 10th. Stockholders of record on Friday, October 30th will be issued a dividend of $1.52 per share. This is an increase from Texas Instruments’s previous quarterly dividend of $1.42. This represents a $6.08 dividend on an annualized basis and a dividend yield of 2.2%. The ex-dividend date of this dividend is Friday, October 30th. Texas Instruments’s payout ratio is 86.45%.

Insider Activity

In other news, VP Tsedeniya Abraham sold 7,000 shares of the business’s stock in a transaction dated Thursday, August 27th. The shares were sold at an average price of $264.63, for a total value of $1,852,410.00. Following the completion of the sale, the vice president owned 23,181 shares of the company’s stock, valued at approximately $6,134,388.03. The trade was a 23.19% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Insiders own 0.60% of the company’s stock.

Institutional Trading of Texas Instruments

Several hedge funds and other institutional investors have recently bought and sold shares of the business. Kilter Group LLC bought a new position in shares of Texas Instruments during the second quarter worth approximately $31,000. Nvwm LLC raised its position in shares of Texas Instruments by 550.0% in the third quarter. Nvwm LLC now owns 117 shares of the semiconductor company’s stock valued at $33,000 after buying an additional 99 shares in the last quarter. Addison Advisors LLC bought a new stake in shares of Texas Instruments in the second quarter valued at approximately $38,000. Reyes Financial Architecture Inc. bought a new stake in shares of Texas Instruments in the third quarter valued at approximately $36,000. Finally, Caitlin John LLC acquired a new stake in Texas Instruments during the second quarter worth approximately $41,000. Institutional investors and hedge funds own 84.99% of the company’s stock.

Trending Headlines about Texas Instruments

Here are the key news stories impacting Texas Instruments this week:

• Positive Sentiment: Q3 results exceeded expectations: Revenue rose 27.7% year over year to $6.06 billion, while EPS reached $2.62 versus the $2.40 consensus estimate. Net income increased 78% to $2.43 billion, supported by broad-based growth in industrial, automotive and data-center markets. Texas Instruments third-quarter financial results
• Positive Sentiment: Data-center demand is accelerating: Data-center revenue grew 95% year over year, while industrial demand reached a record level. Management also highlighted improving factory utilization and capacity expansion aimed at supporting long-term cash-flow growth. Texas Instruments key takeaways
• Positive Sentiment: Forecasts and analyst views improved: Fourth-quarter revenue guidance was reportedly above Wall Street expectations, and JPMorgan, Stifel, Rosenblatt and Freedom Broker raised their price targets, with targets ranging from $330 to $370. Texas Instruments earnings call highlights
• Neutral Sentiment: Options activity increased: Traders purchased 19,194 TXN call options, approximately 7% above average daily call volume, indicating heightened interest but not necessarily a sustained change in fundamentals.
• Negative Sentiment: Strong results were not enough to overcome valuation concerns: With TXN trading at a high earnings multiple, investors may have expected an even stronger outlook. Analysts noted that share performance could continue to lag business results if expectations remain elevated. Texas Instruments valuation analysis
• Negative Sentiment: Analyst opinion remains divided: Mizuho lowered its price target to $290 and kept a neutral rating, while Wells Fargo also maintained a cautious stance. This signals that some investors view much of the recovery as already reflected in the stock.

About Texas Instruments

Texas Instruments Incorporated (NASDAQ:TXN) designs and manufactures analog and embedded semiconductor products used in industrial, automotive, personal electronics, communications equipment, and enterprise systems. Its analog products help manage power, sense and measure real-world signals, and support signal processing, while its embedded processing products provide computing and control functions within electronic systems.

The company offers a broad portfolio of semiconductors, including power-management devices, amplifiers, data converters, microcontrollers, processors, and connectivity products.