Analyzing Texas Instruments Incorporated (TXN) By Technical Indicators


As of Wednesday close, Texas Instruments Incorporated’s (NASDAQ:TXN) stock was up $1.76, moving up 0.99 percent to $178.98. The average number of shares traded per day over the past five days has been 4,826,060 shares. 4 times new highs have been achieved over the past 5 days, with a $5.52 gain in that time frame. In the last twenty days, the average volume was 5,938,115, while in the previous 50 days, it was 6,380,058.

Since last month, TXN stock rose 10.37%. Shares of the company fell to $151.33 on 10/26/22, the lowest level in the past month. A 52-week high of $199.90 was reached on 01/04/22 after having rallying from a 52-week low of $144.46. Since the beginning of this year, TXN’s stock price has dropped by -5.04% or -$9.49, and marked a new high 2 times. However, the stock has declined by -10.47% since its 52-week high.

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TXN stock investors should be aware that Texas Instruments Incorporated (TXN) stock had its last reported insider trading activity 9 days ago on Nov 16. CLARK JANET F, the Director of the company, disposed of 9,990 shares for $175.16 on Nov 16. It resulted in a $1,749,851 divestment by the insider. BAHAI AHMAD sold 1,109 shares at an average price of $180.01 on Nov 11. The insider now owns 27,306 shares following the transaction. On Aug 01, Sr. Vice President Roberts Mark T. sold 2,048 shares at $177.50 apiece. The transaction was valued at $363,527.

Valuation Metrics

Right now, Texas Instruments Incorporated (TXN) has a P/E ratio of about 18.74. The stock’s beta is 0.99. Besides these, the trailing price-to-sales (P/S) ratio of 8.05, the price-to-book (PB) ratio of 11.26, and the price-to-cash flow ratio of 96.39 may also be considered.

The latest dividend of $1.24 per share was paid out, which is 7.83% more than last year’s $1.15. On Thursday September 15 2022, a $0.09 dividend increase was announced.

Financial Health

In the three months ended September 29, Texas Instruments Incorporated’s quick ratio stood at 4.10, while its current ratio was 4.90, showing that the company is able to pay off its debt. According to company report, the long-term debt-to-equity ratio for the quarter ending September 29 was 0.51, and the total debt-to-equity ratio was 0.55. On the profitability front, the trailing twelve-month gross margin is 69.50% percent. In the year ended September 29, operating margins totaled 51.80%. Based on annual data, TXN earned $12.38 billion in gross profit and brought in $18.34 billion in revenue.

A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was 37.10%. Return on equity (ROE) for the past 12 months was 63.50%.

In Texas Instruments Incorporated’s quarter-end financial report for September 29, it reported total debt of $7.44 billion against cash and short-term investments of $5.92 billion. According to the earnings report, the company had a higher net income in the recent quarter than it did in the previous quarter. TXN’s revenue rose 11.41% to $5.21 billion during the quarter, while net income inched up to $5.24 billion. While analysts expected Texas Instruments Incorporated to report $2.39 quarterly earnings, the actual figure was $2.47 per share, beating the consensus estimate by 3.30%. During the quarter, the company generated $2.94 billion in EBITDA. The liabilities of Texas Instruments Incorporated were 11.55 billion at the end of its most recent quarter ended September 29, and its total debt was $7.94 billion. The value of shareholders’ equity is $907.57 million.

Technical Picture

This quick technical analysis looks at Texas Instruments Incorporated’s (TXN) price momentum. With a historical volatility rate of 26.81%, the RSI 9-day stood at 65.88% on 23 November.

With respect to its five-day moving average, the current Texas Instruments Incorporated price is up by +3.18% percent or $5.52. At present, TXN shares trade +13.37% above its 20-day simple moving average and +20.04% percent above its 100-day simple moving average. However, the stock is currently trading approximately +8.30% above its SMA50 and +3.68% above its SMA200.

Stochastic coefficient K was 75.91% and Stochastic coefficient D was 72.43%, while ATR was 4.65. Given the Stochastic reading of 84.96% for the 14-day period, the RSI (14) reading has been calculated as 63.20%. As of today, the MACD Oscillator reading stands at -0.14, while the 14-day reading stands at 3.11.

Analyst Ratings

Texas Instruments Incorporated downgraded its rating on Texas Instruments Incorporated (NASDAQ: TXN) to a Neutral in a note to investors on November 16, 2022. The analysts firm previously had an Outperform rating on the stock.Texas Instruments Incorporated (TXN) has been rated Hold by analysts. According to 3 brokerage firms, TXN is a sell, and 18 firms recommend it is a Hold. There are 0 analysts who say the stock is underweight. A total of 1 analyst rate Texas Instruments Incorporated stock as buy, with 9 recommending it as overweight.

With a median target price of $165.00, the current consensus forecast for the stock is $140.00 – $230.00. Based on these forecasts, analysts predict Texas Instruments Incorporated (TXN) will achieve an average price target of $172.48.


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