Texas Instruments (NASDAQ:TXN) Cut to "Underperform" at Bank of America

Key Points

• Texas Instruments was downgraded from a "neutral" to an "underperform" rating by Bank of America, with a target price of $190.00, indicating a potential upside of 10.66% from the previous close.
• Analysts at various brokerages have set different price targets for TXN, with estimates ranging from $200.00 to $255.00, but the average target price is currently $213.03.
• The company reported strong quarterly earnings, with an earnings per share (EPS) of $1.41, exceeding estimates and showing a 16.4% year-over-year revenue increase.

Texas Instruments (NASDAQ:TXN - Get Free Report) was downgraded by research analysts at Bank of America from a "neutral" rating to an "underperform" rating in a note issued to investors on Monday,Finviz reports. They currently have a $190.00 target price on the semiconductor company's stock. Bank of America's price objective points to a potential upside of 10.66% from the stock's previous close.

A number of other brokerages have also recently issued reports on TXN. Mizuho dropped their price objective on Texas Instruments from $205.00 to $200.00 and set a "neutral" rating on the stock in a research note on Wednesday, July 23rd. Cantor Fitzgerald reiterated a "neutral" rating on shares of Texas Instruments in a research note on Tuesday, July 22nd. UBS Group set a $255.00 price objective on Texas Instruments in a research note on Tuesday, July 22nd. TD Cowen dropped their price objective on Texas Instruments from $245.00 to $230.00 and set a "buy" rating on the stock in a research note on Wednesday, July 23rd. Finally, Arete assumed coverage on Texas Instruments in a research note on Thursday, June 26th. They set a "neutral" rating and a $203.80 price objective on the stock. Two analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating, thirteen have assigned a Hold rating and five have given a Sell rating to the company's stock. According to data from MarketBeat.com, the company presently has an average rating of "Hold" and an average target price of $213.03.

Texas Instruments Stock Performance

TXN opened at $171.70 on Monday. The business's 50-day moving average price is $188.26 and its two-hundred day moving average price is $185.76. Texas Instruments has a 1 year low of $139.95 and a 1 year high of $221.69. The company has a market capitalization of $156.10 billion, a price-to-earnings ratio of 31.45, a P/E/G ratio of 2.80 and a beta of 1.01. The company has a debt-to-equity ratio of 0.86, a current ratio of 5.81 and a quick ratio of 3.88.

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

Insider Buying and Selling

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

Institutional Trading of Texas Instruments

Large investors have recently modified their holdings of the stock. Kestra Private Wealth Services LLC grew its holdings in shares of Texas Instruments by 10.9% during the 1st quarter. Kestra Private Wealth Services LLC now owns 63,786 shares of the semiconductor company's stock worth $11,462,000 after purchasing an additional 6,267 shares in the last quarter. Independent Advisor Alliance grew its holdings in shares of Texas Instruments by 4.8% during the 1st quarter. Independent Advisor Alliance now owns 26,684 shares of the semiconductor company's stock worth $4,795,000 after purchasing an additional 1,232 shares in the last quarter. Baron Silver Stevens Financial Advisors LLC acquired a new stake in shares of Texas Instruments during the 2nd quarter worth $326,000. Farther Finance Advisors LLC grew its holdings in shares of Texas Instruments by 34.4% during the 2nd quarter. Farther Finance Advisors LLC now owns 16,363 shares of the semiconductor company's stock worth $3,397,000 after purchasing an additional 4,191 shares in the last quarter. Finally, Generate Investment Management Ltd grew its holdings in shares of Texas Instruments by 40.0% during the 2nd quarter. Generate Investment Management Ltd now owns 87,796 shares of the semiconductor company's stock worth $18,228,000 after purchasing an additional 25,105 shares in the last quarter. 84.99% of the stock is owned by institutional investors and hedge funds.

Texas Instruments Company Profile

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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