Texas Instruments Incorporated (NASDAQ:TXN) Stock Has Average Target Price of $315.37

Key Points

• Analysts are moderately bullish on Texas Instruments: 17 of 31 covering analysts rate the stock Buy or Strong Buy, and the average 12-month price target is $315.37.
• Texas Instruments reported quarterly EPS of $2.62, beating the $2.40 consensus, while revenue of $6.05 billion rose 27.7% year over year.
• The company increased its quarterly dividend from $1.42 to $1.52 per share, equivalent to $6.08 annually and a 2.0% yield.

Texas Instruments Incorporated (NASDAQ:TXN - Get Free Report) has been assigned an average recommendation of "Moderate Buy" from the thirty-one analysts that are presently covering the stock, Marketbeat reports. Two equities research analysts have rated the stock with a sell recommendation, twelve have issued a hold recommendation, sixteen have assigned a buy recommendation and one has given a strong buy recommendation to the company. The average twelve-month target price among brokerages that have updated their coverage on the stock in the last year is $315.37.

Several research firms have recently weighed in on TXN. Evercore reiterated an "outperform" rating and issued a $330.00 price objective (up from $316.00) on shares of Texas Instruments in a research note on Thursday, July 23rd. DZ Bank raised shares of Texas Instruments from a "sell" rating to a "hold" rating and set a $300.00 target price on the stock in a research note on Wednesday, October 28th. Benchmark increased their target price on shares of Texas Instruments from $315.00 to $360.00 and gave the stock a "buy" rating in a research note on Thursday, July 23rd. UBS Group reduced their price target on shares of Texas Instruments from $380.00 to $360.00 and set a "buy" rating for the company in a report on Thursday, October 22nd. Finally, Morgan Stanley lifted their price target on shares of Texas Instruments from $255.00 to $278.00 and gave the company an "underweight" rating in a research note on Thursday, October 22nd.

Texas Instruments Trading Up 1.6%

Shares of TXN stock opened at $300.52 on Wednesday. The company has a market cap of $274.61 billion, a P/E ratio of 38.98, a PEG ratio of 1.45 and a beta of 1.39. The stock has a 50 day simple moving average of $280.59 and a two-hundred day simple moving average of $262.44. The company has a debt-to-equity ratio of 0.67, a quick ratio of 4.05 and a current ratio of 5.59. Texas Instruments has a fifty-two week low of $152.73 and a fifty-two week high of $334.03.

Texas Instruments (NASDAQ:TXN - Get Free Report) last issued its quarterly earnings results on Wednesday, October 21st. The semiconductor company reported $2.62 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.40 by $0.22. The firm had revenue of $6.05 billion for the quarter, compared to analyst estimates of $5.94 billion. Texas Instruments had a return on equity of 40.51% and a net margin of 34.25%. The company's revenue was up 27.7% compared to the same quarter last year. During the same period in the previous year, the firm earned $1.48 earnings per share. Research analysts forecast that Texas Instruments will post 8.97 earnings per share for the current year.

Texas Instruments Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, November 10th. Stockholders of record on Friday, October 30th were given a dividend of $1.52 per share. This is a boost from Texas Instruments's previous quarterly dividend of $1.42. The ex-dividend date of this dividend was Friday, October 30th. This represents a $6.08 dividend on an annualized basis and a dividend yield of 2.0%. Texas Instruments's payout ratio is currently 78.86%.

Key Headlines Impacting Texas Instruments

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

• Positive Sentiment: Recent coverage points to strong earnings, rising demand for chips used in AI data centers and robust cash flow as possible supports for further gains. TXN has climbed about 70% year to date, though its premium valuation could limit upside. Read the article
• Positive Sentiment: TI added agentic AI capabilities to its CCStudio development ecosystem, including a tool designed to cut compatible-device software migration from months to days. Easier development could make TI’s microcontroller and connectivity products more attractive to engineers, although the revenue impact is not yet clear. Read the article
• Positive Sentiment: TI also introduced multiprotocol industrial communications devices for factory automation, robotics and industrial IoT. The products aim to simplify interoperability for equipment makers and plant operators, potentially supporting demand in industrial markets. Read the article
• Positive Sentiment: Zacks included TXN among its Rank #1 (Strong Buy) income stocks, while a separate dividend-stock article highlighted the company’s appeal to income investors. Read the article
• Negative Sentiment: ETFs were reported as net sellers of TXN on Nov. 6, with $228.8 million in sales. This may create near-term selling pressure, though a single day of fund flows does not establish a longer-term trend. Read the article

Insider Activity at Texas Instruments

In related news, Director Robert E. Sanchez sold 6,065 shares of the business's stock in a transaction dated Tuesday, October 27th. The stock was sold at an average price of $302.21, for a total value of $1,832,903.65. Following the completion of the sale, the director directly owned 21,600 shares of the company's stock, valued at $6,527,736. The trade was a 21.92% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, Director Janet F. Clark sold 4,306 shares of the company's stock in a transaction that occurred on Tuesday, October 27th. The stock was sold at an average price of $302.46, for a total value of $1,302,392.76. Following the transaction, the director directly owned 11,341 shares in the company, valued at approximately $3,430,198.86. This trade represents a 27.52% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 27,968 shares of company stock worth $8,236,892. 0.60% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Texas Instruments

Several hedge funds and other institutional investors have recently modified their holdings of the company. BlackRock Inc. acquired a new position in shares of Texas Instruments during the second quarter valued at about $24,607,313,000. Bank of New York Mellon Corp bought a new stake in shares of Texas Instruments during the 2nd quarter worth $4,488,666,000. Bank of America Corp DE purchased a new stake in Texas Instruments in the second quarter worth $3,700,842,000. Van ECK Associates Corp raised its position in shares of Texas Instruments by 1.5% in the second quarter. Van ECK Associates Corp now owns 12,149,167 shares of the semiconductor company's stock valued at $3,621,302,000 after purchasing an additional 177,511 shares during the period. Finally, Primecap Management Co. CA purchased a new position in shares of Texas Instruments in the second quarter valued at $2,538,063,000. Institutional investors own 84.99% of the company's stock.

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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