The stock of Texas Instruments Incorporated (NASDAQ:TXN) increased by $4.28 on Monday to finish at $170.48, up 2.58 percent. The last five days have seen an average of 5,138,680 shares of common stock traded. 10 times new highs were reached in the current year, with a gain of $5.26. The average number of shares traded over the last 20 days was 6,252,910, while the average volume over the last 50 days totaled 5,315,348.
TXN stock dropped -5.73% since last month. On 08/08/23, the company’s shares reached a one-month low of $164.43. The stock touched a high of $188.12 on 07/25/23, after rallying from a low of $145.97 in 52 weeks. The price of TXN stock has risen by 3.18% or $5.26 this year, reaching a new high 10 times. Still, the stock price is down -9.38% from the 52-week high.
Insider Transactions
TXN stock investors should be aware that Texas Instruments Incorporated (TXN) stock had its last reported insider trading activity 15 days ago on Jul 31. On Jul 31, Director COX CARRIE SMITH sold 16,055 shares at $180.04 each. This transaction resulted in the insider making $2,890,542. On Jul 27, PATSLEY PAMELA H sold 10,539 shares at a price of US$179.34. After the transaction, the insider now owns 32,662 shares. Sr. Vice President BAHAI AHMAD had earlier sold 1,200 shares on Feb 13 for $176.67 a share. The transaction was completed for $212,003.
Valuation Metrics
Texas Instruments Incorporated (TXN) has a trailing price-to-earnings (P/E) ratio of 20.46. Beta for the stock is 1.02. There are also a few other valuation ratios worth considering, including the trailing price-to-sales (P/S) ratio of 8.29, the price-to-book (PB) ratio of 9.71, and the price-to-cash flow ratio of 49.04.
Company paid $1.24 per share in dividends, remained unchanged from $1.24 last year. A $0.09 dividend increase was reported on Thursday September 15 2022.
Financial Health
For the three months ended June 29, Texas Instruments Incorporated’s quick ratio was 4.30, while its current ratio was 5.70, indicating its ability to pay off its debt. The company’s long-term debt to equity ratio for the quarter ending June 29 is 0.69, and the total debt to equity ratio is 0.70. As far as profitability goes, gross margin for the trailing twelve months is 66.30% percent. Texas Instruments Incorporated’s EBITDA margin for the year ended June 29 was 56.80%, whereas its operating margin stood at 46.50% for the same period. Based on annual data, it had gross profit of $13.77 billion and revenue of $20.03 billion.
Investors will also look at the performance of the company’s management in order to determine the potential profitability of their investment. TXN’s return on assets (ROA) during the last 12 months has been 27.00%. There was a 38.00% return on investment (ROI) in the past year. In the meantime, the return on equity (ROE) for the last 12 months was 50.80%.
Earnings Surprise
According to Texas Instruments Incorporated’s quarterly financial report for the quarter that ended June 29, it had $10.92 billion in total debt versus $6.11 billion in cash and short-term investments. A higher net income was reported in the quarter under review than the previous quarter. Net income for the quarter came in at $4.53 billion, while revenues fell by -15.03% to $4.38 billion. It was predicted that Texas Instruments Incorporated’s quarterly earnings would be $1.87, but it ended up being $1.76, beating the consensus by 6.30%. EBITDA was $2.27 billion for the quarter. At the end of Texas Instruments Incorporated’s most recent quarter ended June 29, its liabilities totaled 15.0 billion, while its total debt was $11.22 billion. Equity owned by shareholders amounts to $907.97 million.
Technical Picture
Here’s a quick look at Texas Instruments Incorporated’s (TXN) price momentum from a technical perspective. As of 14 August, the RSI 9-day stood at 44.31%, suggesting the stock is Neutral, with a 24.66% historical volatility rate.
The stochastic %K and %D were 18.97% and 13.83% respectively, while the average true range (ATR) was 3.91. Based on the 14-day stochastic reading of 36.21%, the RSI (14) reading is 44.09%. On the 9-day MACD Oscillator, the stock is at -0.80, and the 14-day reading is at -4.09.
Analyst Ratings
In its analyst report released on July 20, 2023, Wolfe Research began covering Texas Instruments Incorporated (NASDAQ: TXN). The stock was rated as a Peer perform by the brokerage firm. Analysts have assigned Texas Instruments Incorporated (TXN) an Hold rating. TXN is a stock that is recommended for selling by 3 brokerage firms, while 19 companies recommend holding. The stock is underweighted by 0 analysts. Among the analysts who rate the stock, 0 rates it overweight and 10 others recommend it as a buy.
What is TXN’s price target for the next 12 months?
The current consensus forecast for the stock is between $130.00 and $230.00, with a median target price of $185.00. In analyzing these forecasts, the average price target given by analysts for Texas Instruments Incorporated (TXN) is $186.78.
