Zacks Research Upgrades Texas Instruments (NASDAQ:TXN) to "Strong-Buy"

Key Points

• Zacks Research upgraded Texas Instruments to “Strong Buy” from “Hold,” reflecting improved analyst sentiment amid stronger demand for analog and data-center products.
• Texas Instruments exceeded quarterly expectations with $2.62 EPS and $6.05 billion in revenue, while revenue rose 27.7% year over year; management also provided stronger-than-expected fourth-quarter guidance.
• Despite the upgrade, broader analyst sentiment remains mixed: TXN has a consensus “Hold” rating and an average price target of $311.39, while its premium valuation could pose risks if industrial recovery or AI infrastructure spending slows.

Texas Instruments (NASDAQ:TXN - Get Free Report) was upgraded by research analysts at Zacks Research from a "hold" rating to a "strong-buy" rating in a research report issued to clients and investors on Thursday, Zacks reports.

TXN has been the topic of a number of other research reports. UBS Group reduced their price target on Texas Instruments from $380.00 to $360.00 and set a "buy" rating on the stock in a research report on Thursday. TD Cowen lowered their price objective on Texas Instruments from $340.00 to $330.00 and set a "buy" rating for the company in a research report on Monday, October 19th. Citigroup reissued a "buy" rating on shares of Texas Instruments in a research report on Thursday. Wells Fargo & Company lowered their price target on shares of Texas Instruments from $310.00 to $300.00 and set an "equal weight" rating for the company in a report on Tuesday. Finally, Jefferies Financial Group raised their price target on shares of Texas Instruments from $260.00 to $300.00 and gave the stock a "hold" rating in a report on Thursday. One analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating, eleven have issued a Hold rating and three have assigned a Sell rating to the stock. Based on data from MarketBeat.com, Texas Instruments presently has a consensus rating of "Hold" and an average target price of $311.39.

Texas Instruments Price Performance

TXN stock opened at $284.69 on Thursday. The company has a fifty day moving average price of $271.98 and a 200-day moving average price of $279.47. The company has a market capitalization of $259.99 billion, a P/E ratio of 36.92, a PEG ratio of 1.52 and a beta of 1.35. Texas Instruments has a 52-week low of $152.73 and a 52-week high of $334.03. The company has a debt-to-equity ratio of 0.67, a quick ratio of 3.44 and a current ratio of 5.59.

Texas Instruments (NASDAQ:TXN - Get Free Report) last issued its quarterly earnings data on Wednesday, October 21st. The semiconductor company reported $2.62 earnings per share for the quarter, topping the consensus estimate of $2.40 by $0.22. The company had revenue of $6.05 billion for the quarter, compared to analysts' expectations of $5.94 billion. Texas Instruments had a net margin of 34.25% and a return on equity of 40.51%. Texas Instruments's revenue for the quarter was up 27.7% on a year-over-year basis. During the same quarter in the previous year, the firm posted $1.48 earnings per share. As a group, equities analysts expect that Texas Instruments will post 8.69 EPS for the current year.

Insider Buying and Selling

In other Texas Instruments news, VP Tsedeniya Abraham sold 7,000 shares of the company's stock in a transaction on Thursday, August 27th. The shares were sold at an average price of $264.63, for a total transaction of $1,852,410.00. Following the transaction, the vice president owned 23,181 shares in the company, valued at approximately $6,134,388.03. This represents a 23.19% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Company insiders own 0.60% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of TXN. Revolve Wealth Partners LLC raised its holdings in shares of Texas Instruments by 4.4% during the third quarter. Revolve Wealth Partners LLC now owns 1,650 shares of the semiconductor company's stock valued at $462,000 after purchasing an additional 70 shares during the last quarter. Brandywine Oak Private Wealth LLC purchased a new stake in Texas Instruments in the third quarter worth approximately $222,000. Trueblood Wealth Management LLC boosted its holdings in Texas Instruments by 4.6% in the third quarter. Trueblood Wealth Management LLC now owns 2,016 shares of the semiconductor company's stock worth $565,000 after purchasing an additional 89 shares during the last quarter. Norris Perne & French LLP MI purchased a new stake in Texas Instruments in the third quarter worth approximately $286,000. Finally, Signaturefd LLC grew its position in Texas Instruments by 0.5% in the 3rd quarter. Signaturefd LLC now owns 21,764 shares of the semiconductor company's stock worth $6,096,000 after purchasing an additional 110 shares during the period. Institutional investors own 84.99% of the company's stock.

Texas Instruments News Roundup

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 28% year over year, while EPS increased 77% to $2.62 and exceeded consensus expectations. Industrial, analog and data-center demand drove the results, with data-center revenue reportedly rising 95%. TXN Q3 Earnings Beat Estimates on Strong Analog, Data Center Demand
• Positive Sentiment: Management’s fourth-quarter revenue guidance, with a midpoint of about $6.05 billion, came in well above analyst expectations. Capacity expansion and broader cyclical recovery could support longer-term revenue, margins and cash flow. TXN Q3 Deep Dive: Industrial and Data Center Growth Drive Outlook Upgrade
• Positive Sentiment: Analyst sentiment strengthened: Zacks upgraded TXN to Rank #1, Freedom Broker raised its rating to Buy with a $330 target, and JPMorgan lifted its target to $365 while maintaining an Overweight rating. Texas Instruments Upgraded to Strong Buy
• Positive Sentiment: New chips for AI data centers—including power-monitoring, high-voltage distribution and timing components—give TXN additional exposure to data-center infrastructure growth. Texas Instruments Debuts Industry First Chips for AI Data Centers
• Neutral Sentiment: Unusual call-option activity and comparisons with Micron indicate bullish trading interest, although Micron was viewed as having stronger AI-driven growth and a lower valuation. Micron vs. Texas Instruments
• Negative Sentiment: TXN’s premium valuation remains a risk if the industrial recovery or AI infrastructure spending slows. Mizuho lowered its target to $290 and kept a Neutral rating, highlighting limited near-term upside. Mizuho Texas Instruments Rating

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.

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