Texas Instruments (NASDAQ:TXN) Shares Gap Down Following Analyst Downgrade

Key Points

• Texas Instruments shares dropped sharply after Mizuho downgraded the stock from a neutral rating to an underperform rating, setting a new price target of $150.00.
• In recent analyst reports, other firms like Morgan Stanley and Bank of America also lowered their ratings and price targets for Texas Instruments, indicating a generally bearish outlook.
• The company announced an increase in its quarterly dividend from $1.36 to $1.42 per share, with a scheduled payment date on November 12th.

Texas Instruments Incorporated (NASDAQ:TXN - Get Free Report) shares gapped down prior to trading on Monday after Mizuho downgraded the stock from a neutral rating to an underperform rating. The stock had previously closed at $176.58, but opened at $172.51. Mizuho now has a $150.00 price target on the stock, down from their previous price target of $200.00. Texas Instruments shares last traded at $179.02, with a volume of 1,015,466 shares changing hands.

TXN has been the topic of a number of other reports. Morgan Stanley decreased their price target 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. Bank of America cut Texas Instruments from a "neutral" rating to an "underperform" rating and decreased their price target for the stock from $208.00 to $190.00 in a research note on Monday, October 13th. KeyCorp upped their price target on Texas Instruments from $215.00 to $240.00 and gave the stock an "overweight" rating in a research note on Tuesday, July 8th. UBS Group set a $255.00 price target on Texas Instruments in a research note on Tuesday, July 22nd. Finally, DZ Bank restated a "sell" rating and set a $158.00 price target on shares of Texas Instruments in a research note on Wednesday, July 23rd. Two equities research analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, twelve have issued a Hold rating and six have assigned a Sell rating to the company. According to MarketBeat.com, the stock has a consensus rating of "Hold" and an average price target of $209.47.

Insider Buying and Selling at Texas Instruments

In other 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 transaction of $308,025.00. Following the sale, the vice president owned 38,883 shares of the company's stock, valued at approximately $7,984,624.05. This represents a 3.71% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Corporate insiders own 0.57% of the company's stock.

Institutional Trading of Texas Instruments

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Range Financial Group LLC raised its stake in Texas Instruments by 51.9% in the third quarter. Range Financial Group LLC now owns 4,019 shares of the semiconductor company's stock valued at $738,000 after buying an additional 1,373 shares in the last quarter. Old North State Wealth Management LLC acquired a new stake in Texas Instruments in the third quarter valued at $429,000. Goldstone Financial Group LLC raised its stake in Texas Instruments by 14.0% in the third quarter. Goldstone Financial Group LLC now owns 3,076 shares of the semiconductor company's stock valued at $565,000 after buying an additional 378 shares in the last quarter. Mattson Financial Services LLC acquired a new stake in Texas Instruments in the third quarter valued at $864,000. Finally, Traveka Wealth LLC raised its stake in Texas Instruments by 4.8% in the third quarter. Traveka Wealth LLC now owns 1,371 shares of the semiconductor company's stock valued at $252,000 after buying an additional 63 shares in the last quarter. 84.99% of the stock is currently owned by institutional investors and hedge funds.

Texas Instruments Stock Performance

The company has a debt-to-equity ratio of 0.86, a current ratio of 5.81 and a quick ratio of 3.88. The company has a market capitalization of $163.70 billion, a price-to-earnings ratio of 32.89, a PEG ratio of 2.99 and a beta of 1.01. The stock has a 50 day simple moving average of $187.25 and a two-hundred day simple moving average of $185.76.

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

Texas Instruments Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, November 12th. Shareholders of record on Friday, October 31st will be issued a dividend of $1.42 per share. The ex-dividend date of this dividend is Friday, October 31st. This is a positive change from Texas Instruments's previous quarterly dividend of $1.36. This represents a $5.68 annualized dividend and a dividend yield of 3.2%. Texas Instruments's dividend payout ratio is 99.63%.

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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