Texas Instruments (NASDAQ:TXN) Upgraded at Freedom Broker

Key Points

• Freedom Broker upgraded Texas Instruments from “hold” to “buy” and raised its price target from $260 to $330, implying approximately 18% upside from the stock’s reported $279.50 price.
• Texas Instruments reported strong quarterly results, with EPS of $2.62 and revenue of $6.05 billion exceeding analyst estimates; revenue increased 27.7% year over year.
• Analyst sentiment remains mixed despite several target increases: 16 analysts rate the stock “buy,” 12 “hold,” and three “sell,” producing a consensus “hold” rating and $311.39 price target. Valuation is a concern, with the stock trading at roughly 42.5 times earnings.

Texas Instruments (NASDAQ:TXN - Get Free Report) was upgraded by investment analysts at Freedom Broker from a "hold" rating to a "buy" rating in a report issued on Thursday, Benzinga reports. The brokerage currently has a $330.00 price objective on the semiconductor company's stock, up from their previous price objective of $260.00. Freedom Broker's price objective would suggest a potential upside of 18.07% from the company's current price.

A number of other equities analysts have also weighed in on TXN. UBS Group dropped their target price on shares of Texas Instruments from $380.00 to $360.00 and set a "buy" rating for the company in a research report on Thursday. Robert W. Baird raised their target price on shares of Texas Instruments from $300.00 to $385.00 and gave the company an "outperform" rating in a research note on Thursday, July 23rd. Wall Street Zen upgraded shares of Texas Instruments from a "hold" rating to a "buy" rating in a report on Saturday, July 18th. Zacks Research downgraded shares of Texas Instruments from a "strong-buy" rating to a "hold" rating in a report on Monday, September 21st. Finally, Stifel Nicolaus boosted their price target on shares of Texas Instruments from $360.00 to $370.00 and gave the stock a "buy" rating in a research note on Thursday. Sixteen 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 company. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus price target of $311.39.

Texas Instruments Price Performance

NASDAQ TXN traded down $5.15 during trading hours on Thursday, reaching $279.50. The company's stock had a trading volume of 13,088,405 shares, compared to its average volume of 7,575,773. Texas Instruments has a 1 year low of $152.73 and a 1 year high of $334.03. The company has a quick ratio of 3.44, a current ratio of 4.86 and a debt-to-equity ratio of 0.72. The company has a market capitalization of $255.25 billion, a price-to-earnings ratio of 42.54, a PEG ratio of 1.55 and a beta of 1.35. The firm's 50-day moving average price is $271.76 and its 200-day moving average price is $278.84.

Texas Instruments (NASDAQ:TXN - Get Free Report) last announced its quarterly earnings data on Wednesday, October 21st. The semiconductor company reported $2.62 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.40 by $0.22. The business had revenue of $6.05 billion during the quarter, compared to analyst estimates of $5.94 billion. Texas Instruments had a net margin of 31.11% and a return on equity of 35.77%. The company's revenue was up 27.7% on a year-over-year basis. During the same period last year, the firm posted $1.48 EPS. On average, equities research analysts predict that Texas Instruments will post 8.49 EPS for the current fiscal year.

Insider Activity

In other news, VP Tsedeniya Abraham sold 7,000 shares of the stock in a transaction that occurred on Thursday, August 27th. The stock was sold at an average price of $264.63, for a total transaction of $1,852,410.00. Following the completion of the transaction, the vice president directly owned 23,181 shares in the company, valued at approximately $6,134,388.03. This represents a 23.19% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 0.60% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of the business. BlackRock Inc. purchased a new position in shares of Texas Instruments in the 2nd quarter worth $24,607,313,000. Bank of New York Mellon Corp bought a new position in shares of Texas Instruments in the 2nd quarter valued at about $4,488,666,000. Bank of America Corp DE bought a new position in shares of Texas Instruments in the 2nd quarter valued at about $3,700,842,000. Primecap Management Co. CA purchased a new position in Texas Instruments in the second quarter worth about $2,538,063,000. Finally, Legal & General Group Plc purchased a new position in Texas Instruments in the second quarter worth about $1,918,277,000. 84.99% of the stock is owned by hedge funds and other institutional investors.

Key Stories Impacting Texas Instruments

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

• Positive Sentiment: Texas Instruments reported third-quarter revenue of approximately $6.06 billion, up 27.7% year over year, while earnings per share rose to $2.62 from $1.48. Both figures exceeded Wall Street expectations, with growth led by industrial, automotive, analog and data-center demand. Texas Instruments third-quarter results
• Positive Sentiment: Fourth-quarter revenue guidance reportedly topped consensus, supported by continued industrial demand and spillover from artificial-intelligence investment into analog chips. Management also highlighted record industrial revenue, 95% data-center growth and capacity expansion plans, strengthening the long-term growth and cash-flow outlook. TXN Q3 deep dive
• Positive Sentiment: Several analysts raised their price targets following the results. JPMorgan increased its target to $365 and Stifel to $370, while other reports cited targets approaching $400. These revisions indicate that analysts see earnings momentum and utilization improvements supporting additional upside. Jefferies adjusts TXN price target
• Neutral Sentiment: Options activity was elevated, with traders purchasing 19,194 call contracts, about 7% above average. The activity suggests bullish positioning, but it does not establish a fundamental change in the company’s outlook.
• Negative Sentiment: Investor enthusiasm is being restrained by valuation concerns. With TXN trading at more than 40 times trailing earnings, some analysts argue that the strong results and guidance may already be reflected in the share price, creating a risk that stock performance continues to lag business results. Strong Q3 report valuation analysis
• Negative Sentiment: Analyst opinion remains divided: Mizuho lowered its target to $290 with a neutral rating, while Wells Fargo maintained a hold view. Reports of repeated insider selling may also reinforce caution, although such transactions do not necessarily signal deteriorating fundamentals.

Texas Instruments Company Profile

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.

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