Texas Instruments Incorporated (NASDAQ:TXN) Receives Average Recommendation of "Hold" from Analysts

Key Points

• Texas Instruments has received a consensus analyst recommendation of "Hold", with 32 analysts providing ratings that include 4 sells, 14 holds, and 12 buys.
• The company's recent quarterly earnings surpassed expectations, reporting $1.41 EPS against a forecast of $1.32, with revenue of $4.45 billion compared to the expected $4.31 billion.
• Texas Instruments is set to increase its quarterly dividend to $1.42, marking an annualized yield of 3.1%, with the ex-dividend date on October 31st.

Texas Instruments Incorporated (NASDAQ:TXN - Get Free Report) has received a consensus recommendation of "Hold" from the thirty-two analysts that are presently covering the company, MarketBeat Ratings reports. Four investment analysts have rated the stock with a sell recommendation, fourteen have given a hold recommendation, twelve have issued a buy recommendation and two have assigned a strong buy recommendation to the company. The average 12 month price objective among brokerages that have updated their coverage on the stock in the last year is $213.8174.

TXN has been the topic of several recent analyst reports. TD Cowen cut their target price on shares of Texas Instruments from $245.00 to $230.00 and set a "buy" rating on the stock in a research note on Wednesday, July 23rd. UBS Group set a $255.00 price target on Texas Instruments in a research report on Tuesday, July 22nd. Benchmark reissued a "buy" rating and issued a $220.00 price objective on shares of Texas Instruments in a research note on Monday, September 8th. Morgan Stanley lowered their target price on Texas Instruments from $197.00 to $192.00 and set an "underweight" rating on the stock in a research note on Friday, September 12th. Finally, Bank of America reduced their price target on shares of Texas Instruments from $218.00 to $208.00 and set a "neutral" rating for the company in a research report on Friday, September 5th.

Texas Instruments Price Performance

TXN stock opened at $181.81 on Tuesday. Texas Instruments has a one year low of $139.95 and a one year high of $221.69. The firm has a 50-day moving average of $188.93 and a two-hundred day moving average of $185.94. The firm has a market capitalization of $165.29 billion, a PE ratio of 33.30, a P/E/G ratio of 2.95 and a beta of 1.01. The company has a current ratio of 5.81, a quick ratio of 3.88 and a debt-to-equity ratio of 0.86.

Texas Instruments (NASDAQ:TXN - Get Free Report) last released its earnings results on Tuesday, July 22nd. The semiconductor company reported $1.41 earnings per share for the quarter, topping the consensus estimate of $1.32 by $0.09. The business had revenue of $4.45 billion for the quarter, compared to the consensus estimate of $4.31 billion. Texas Instruments had a net margin of 30.23% and a return on equity of 30.10%. The firm's quarterly revenue was up 16.4% compared to the same quarter last year. During the same period last year, the firm posted $1.17 earnings per share. Texas Instruments has set its Q3 2025 guidance at 1.360-1.600 EPS. On average, analysts forecast that Texas Instruments will post 5.35 earnings per share for the current year.

Texas Instruments Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, November 12th. Shareholders of record on Friday, October 31st will be given a $1.42 dividend. This represents a $5.68 dividend on an annualized basis and a yield of 3.1%. The ex-dividend date is Friday, October 31st. This is a positive change from Texas Instruments's previous quarterly dividend of $1.36. Texas Instruments's payout ratio is currently 104.03%.

Insider Activity

In other news, VP Ahmad Bahai sold 1,500 shares of the business's stock in a transaction on Monday, August 25th. The shares were sold at an average price of $205.35, for a total transaction of $308,025.00. Following the transaction, the vice president directly owned 38,883 shares in the company, valued at $7,984,624.05. The trade was a 3.71% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. 0.57% of the stock is owned by company insiders.

Institutional Trading of Texas Instruments

A number of institutional investors have recently bought and sold shares of the company. Strategic Wealth Investment Group LLC purchased a new stake in shares of Texas Instruments during the 2nd quarter worth about $25,000. Cloud Capital Management LLC bought a new stake in shares of Texas Instruments in the 1st quarter valued at approximately $28,000. Dagco Inc. acquired a new position in Texas Instruments in the first quarter worth approximately $32,000. CBIZ Investment Advisory Services LLC increased its holdings in Texas Instruments by 67.6% in the first quarter. CBIZ Investment Advisory Services LLC now owns 186 shares of the semiconductor company's stock worth $33,000 after buying an additional 75 shares during the last quarter. Finally, Quintet Private Bank Europe S.A. bought a new position in Texas Instruments during the first quarter valued at approximately $34,000. Institutional investors and hedge funds own 84.99% of the company's stock.

About Texas Instruments

Texas Instruments Incorporated designs, manufactures, and sells semiconductors to electronics designers and manufacturers in the United States and internationally. The company operates through Analog and Embedded Processing segments. The Analog segment offers power products to manage power requirements across various voltage levels, including battery-management solutions, DC/DC switching regulators, AC/DC and isolated controllers and converters, power switches, linear regulators, voltage references, and lighting products.

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