Texas Instruments Incorporated (NASDAQ:TXN) Given Consensus Recommendation of "Moderate Buy" by Analysts

Key Points

• Analysts maintain a “Moderate Buy” consensus on Texas Instruments, with 15 buy, two strong-buy, eight hold, and four sell ratings. The average 12-month price target is approximately $312.12.
• Texas Instruments reported quarterly EPS of $2.14 and revenue of $5.46 billion, exceeding analyst estimates; revenue increased 22.8% year over year. Analysts forecast full-year EPS of $8.45.
• The company raised its quarterly dividend from $1.42 to $1.52 per share, or $6.08 annualized, implying a 2.2% yield, while institutional investors own nearly 85% of the stock.

Shares of Texas Instruments Incorporated (NASDAQ:TXN - Get Free Report) have received a consensus recommendation of "Moderate Buy" from the twenty-nine research firms that are presently covering the stock, MarketBeat.com reports. Four research analysts have rated the stock with a sell rating, eight have given a hold rating, fifteen have given a buy rating and two have issued a strong buy rating on the company. The average 1 year price target among brokerages that have updated their coverage on the stock in the last year is $312.1154.

A number of research analysts have issued reports on the company. Evercore reiterated an "outperform" rating and set a $330.00 price objective on shares of Texas Instruments in a research note on Thursday, July 23rd. UBS Group restated a "buy" rating and set a $380.00 price target on shares of Texas Instruments in a report on Thursday, July 23rd. Susquehanna lifted their price target on Texas Instruments from $300.00 to $340.00 and gave the stock a "positive" rating in a research report on Tuesday, July 21st. JPMorgan Chase & Co. upped their price target on shares of Texas Instruments from $280.00 to $340.00 and gave the stock an "overweight" rating in a research note on Thursday, July 23rd. Finally, Cantor Fitzgerald reissued a "neutral" rating on shares of Texas Instruments in a research report on Wednesday, September 9th.

Insider Activity at Texas Instruments

In other news, VP Tsedeniya Abraham sold 7,000 shares of the stock in a transaction that occurred 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 sale, the vice president owned 23,181 shares in the company, valued at $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 available through the SEC website. 0.60% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Texas Instruments

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Contravisory Investment Management Inc. purchased a new position in Texas Instruments in the 2nd quarter worth about $1,493,000. Quantbot Technologies LP bought a new stake in shares of Texas Instruments in the second quarter worth approximately $1,962,000. Nomura Asset Management Co. Ltd. grew its stake in shares of Texas Instruments by 3.1% in the fourth quarter. Nomura Asset Management Co. Ltd. now owns 355,462 shares of the semiconductor company's stock worth $61,669,000 after acquiring an additional 10,839 shares during the period. Ieq Capital LLC purchased a new position in shares of Texas Instruments during the second quarter valued at approximately $17,709,000. Finally, Liontrust Investment Partners LLP bought a new position in Texas Instruments during the first quarter valued at approximately $13,056,000. 84.99% of the stock is owned by institutional investors.

Texas Instruments Trading Up 1.6%

NASDAQ:TXN opened at $270.87 on Tuesday. Texas Instruments has a one year low of $152.73 and a one year high of $334.03. The company has a debt-to-equity ratio of 0.72, a current ratio of 4.86 and a quick ratio of 3.44. The company's 50-day simple moving average is $272.28 and its 200 day simple moving average is $265.12. The firm has a market capitalization of $247.37 billion, a P/E ratio of 41.23, a PEG ratio of 1.49 and a beta of 1.33.

Texas Instruments (NASDAQ:TXN - Get Free Report) last announced its earnings results on Wednesday, July 22nd. The semiconductor company reported $2.14 earnings per share for the quarter, beating analysts' consensus estimates of $1.91 by $0.23. Texas Instruments had a net margin of 31.11% and a return on equity of 35.77%. The business had revenue of $5.46 billion during the quarter, compared to the consensus estimate of $5.26 billion. During the same quarter last year, the firm earned $1.41 earnings per share. The business's revenue for the quarter was up 22.8% on a year-over-year basis. Texas Instruments has set its Q3 2026 guidance at 2.230-2.570 EPS. As a group, analysts forecast that Texas Instruments will post 8.45 EPS for the current fiscal year.

Texas Instruments Increases Dividend

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

About Texas Instruments

Texas Instruments Incorporated NASDAQ: TXN designs and manufactures semiconductors used in industrial, automotive, personal electronics, communications equipment and enterprise systems. The company's portfolio is led by analog chips, which manage power, sensing and signal processing, and embedded processing products, including microcontrollers and processors that control electronic systems.

Texas Instruments also develops products such as data converters, amplifiers, interface and connectivity devices, motor drivers, power-management semiconductors and calculators.

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