Texas Instruments Incorporated (NASDAQ:TXN) Given Consensus Rating of "Hold" by Brokerages

Key Points

• Consensus "Hold": Twenty‑six analysts give TXN a consensus rating of Hold (4 sell, 10 hold, 12 buy) with an average 1‑year target of about $257.68.
• Strong quarter and catalysts: TXN beat Q1 EPS ($1.68 vs. $1.37), set Q2 guidance of $1.77–2.05, and reported ~90% data‑center revenue growth, prompting multiple price‑target hikes (e.g., Rosenblatt to $330, Citi to $280).
• Valuation and insider/activity risks: Insiders sold shares recently and the stock trades at an elevated P/E (~47.4) with a high dividend payout ratio (~104%), leaving some analysts cautious despite the rally.

Shares of Texas Instruments Incorporated (NASDAQ:TXN - Get Free Report) have earned a consensus rating of "Hold" from the twenty-six ratings firms that are presently covering the stock, Marketbeat.com reports. Four investment analysts have rated the stock with a sell recommendation, ten have assigned a hold recommendation and twelve have assigned a buy recommendation to the company. The average 1 year target price among brokerages that have covered the stock in the last year is $257.6846.

Several equities research analysts have recently weighed in on TXN shares. Rosenblatt Securities increased their target price on shares of Texas Instruments from $240.00 to $330.00 and gave the company a "buy" rating in a research note on Thursday. Citigroup increased their target price on shares of Texas Instruments from $235.00 to $280.00 and gave the company a "buy" rating in a research note on Thursday. Susquehanna reissued a "positive" rating and issued a $300.00 target price on shares of Texas Instruments in a research note on Thursday. Morgan Stanley restated an "underweight" rating and issued a $180.00 price target on shares of Texas Instruments in a report on Wednesday, January 28th. Finally, Jefferies Financial Group upped their price target on shares of Texas Instruments from $210.00 to $260.00 and gave the stock a "hold" rating in a report on Thursday.

Key Texas Instruments News

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

• Positive Sentiment: Q1 beat and raised outlook — TXN reported $1.68 EPS (above estimates) and revenue of $4.83B, and management gave Q2 guidance above consensus, which is the primary catalyst for the rally. Read More.
• Positive Sentiment: Data-center demand surge — Management said data‑center revenue jumped sharply (reports cite ~90% growth), validating TXN’s role in the AI/data-center buildout and driving near-term upside. Read More.
• Positive Sentiment: Analyst upgrades and price-target hikes — Multiple firms (BofA, Rosenblatt, Robert W. Baird, JPMorgan, others) raised ratings/targets after the quarter, adding momentum and buy-side conviction. Read More.
• Positive Sentiment: Strategic M&A — TXN announced acquisition of Silicon Labs to add embedded wireless connectivity, reinforcing its push into industrial edge and AI use cases that could expand addressable market. Read More.
• Neutral Sentiment: Industrial demand mix — Management highlighted industrial strength alongside data centers; investors will be watching sustainability of both end markets into FY26. Read More.
• Negative Sentiment: Valuation and profit-taking risk — The rapid run-up has pushed valuation metrics higher (PE expansion), prompting caution that some gains reflect re-rating rather than only fundamental improvement; a few firms still hold conservative/neutral stances. Read More.
• Negative Sentiment: Mixed price-target signals — While many banks raised targets, at least one large shop set an equal‑weight/near‑term target below the rally level, underscoring divergent views on durability of demand. Read More.

Insider Transactions at Texas Instruments

In other news, VP Mark Gary sold 12,921 shares of the company's stock in a transaction dated Wednesday, February 11th. The shares were sold at an average price of $230.10, for a total value of $2,973,122.10. Following the transaction, the vice president directly owned 45,547 shares in the company, valued at approximately $10,480,364.70. This represents a 22.10% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, VP Hagop H. Kozanian sold 6,843 shares of the company's stock in a transaction dated Tuesday, February 17th. The stock was sold at an average price of $225.95, for a total transaction of $1,546,175.85. Following the completion of the transaction, the vice president owned 75,425 shares in the company, valued at approximately $17,042,278.75. The trade was a 8.32% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 114,284 shares of company stock valued at $25,531,935. Company insiders own 0.60% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the stock. Keybank National Association OH grew its holdings in shares of Texas Instruments by 7.9% in the first quarter. Keybank National Association OH now owns 122,750 shares of the semiconductor company's stock worth $23,831,000 after purchasing an additional 9,036 shares during the last quarter. Mitchell & Pahl Private Wealth LLC grew its holdings in shares of Texas Instruments by 1.0% in the first quarter. Mitchell & Pahl Private Wealth LLC now owns 15,039 shares of the semiconductor company's stock worth $2,920,000 after purchasing an additional 143 shares during the last quarter. Physician Wealth Advisors Inc. grew its holdings in shares of Texas Instruments by 17.3% in the first quarter. Physician Wealth Advisors Inc. now owns 1,578 shares of the semiconductor company's stock worth $306,000 after purchasing an additional 233 shares during the last quarter. Root Financial Partners LLC grew its holdings in shares of Texas Instruments by 11.6% in the first quarter. Root Financial Partners LLC now owns 950 shares of the semiconductor company's stock worth $184,000 after purchasing an additional 99 shares during the last quarter. Finally, Petros Family Wealth LLC grew its holdings in Texas Instruments by 8.5% during the 1st quarter. Petros Family Wealth LLC now owns 3,988 shares of the semiconductor company's stock worth $774,000 after acquiring an additional 312 shares in the last quarter. 84.99% of the stock is currently owned by institutional investors.

Texas Instruments Trading Down 1.9%

Shares of TXN opened at $276.98 on Friday. Texas Instruments has a twelve month low of $152.73 and a twelve month high of $287.83. The company has a market cap of $252.18 billion, a P/E ratio of 47.43, a P/E/G ratio of 2.56 and a beta of 1.01. The company has a current ratio of 4.46, a quick ratio of 2.83 and a debt-to-equity ratio of 0.77. The company's fifty day simple moving average is $209.09 and its 200-day simple moving average is $191.05.

Texas Instruments (NASDAQ:TXN - Get Free Report) last announced its earnings results on Wednesday, April 22nd. The semiconductor company reported $1.68 earnings per share for the quarter, beating the consensus estimate of $1.37 by $0.31. Texas Instruments had a net margin of 29.11% and a return on equity of 32.49%. The business had revenue of $4.83 billion for the quarter, compared to the consensus estimate of $4.85 billion. During the same quarter in the prior year, the firm posted $1.23 earnings per share. The business's revenue for the quarter was up 18.6% on a year-over-year basis. Texas Instruments has set its Q2 2026 guidance at 1.770-2.050 EPS. As a group, analysts expect that Texas Instruments will post 6.35 EPS for the current year.

Texas Instruments Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, May 19th. Stockholders of record on Tuesday, May 5th will be issued a $1.42 dividend. The ex-dividend date is Tuesday, May 5th. This represents a $5.68 dividend on an annualized basis and a dividend yield of 2.1%. Texas Instruments's dividend payout ratio is presently 104.41%.

About Texas Instruments

Texas Instruments Inc NASDAQ: TXN is a global semiconductor company headquartered in Dallas, Texas, that designs and manufactures analog and embedded processing chips. The company's products are used across a wide range of end markets, including industrial, automotive, personal electronics, communications and enterprise equipment. TI's business emphasizes components that condition, convert, manage and move electrical signals—capabilities that are foundational to modern electronic systems.

TI's product portfolio includes a broad array of analog integrated circuits—such as power management, amplifiers, data converters and interface devices—as well as embedded processors and microcontrollers used to control systems and run real-time applications.

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