Texas Instruments (NASDAQ:TXN), a renowned semiconductor company, began trading on Friday at $177.72 per share. With a market cap of $161.31 billion, the stock has established itself as a significant player in the tech industry. The company’s stock performance can be analyzed using its 50-day and 200-day simple moving averages, which stand at $175.98 and $175.07 respectively.
The P/E ratio of Texas Instruments is currently at 21.36, indicating that investors are willing to pay $21.36 for every dollar of earnings. Furthermore, the P/E/G ratio is calculated to be 2.55, suggesting that the stock may be slightly overvalued relative to its projected growth rate. The beta of the stock stands at 1.01, implying that it is closely correlated with the overall market.
Over the past year, Texas Instruments has seen fluctuations in its stock price, hitting a low of $145.97 and reaching a high of $188.12. These price movements may present opportunities for investors looking to trade this particular security.
Examining its financial position, Texas Instruments boasts a healthy debt-to-equity ratio of 0.69, indicating prudent management of its capital structure. Additionally, the company maintains strong liquidity with quick and current ratios of 4:04 and 5:72 respectively.
Multiple research reports have been published on Texas Instruments recently by prominent firms such as Bank of America and Mizuho. Bank of America lowered their price objective from $205 to $195 per share back in April, while Mizuho decreased theirs to $181 more recently.
Citigroup analysts revised their target price on Texas Instruments upward from $173 to $182 per share just this past July. They also assigned a “neutral” rating to reflect their stance on the stock’s performance potential.
It’s worth noting that StockNews.com downgraded Texas Instruments from a “buy” to a “hold” rating in June. Conversely, Wolfe Research initiated coverage of the company and provided a “peer perform” rating.
The stock is currently rated by one analyst as “sell,” twelve as “hold,” and six as a “buy,” according to Bloomberg. The average rating for Texas Instruments is categorized as “Hold,” with an average price target of $185.32.
In terms of its dividend policy, Texas Instruments recently declared a quarterly dividend of $1.24 per share. This will be paid to shareholders on August 15th, with those on record as of July 31st being eligible to receive it. The annualized dividend amounts to $4.96 per share, representing a yield of 2.79%. The ex-dividend date for this payment was July 28th.
On July 25th, Texas Instruments released its quarterly earnings report for the most recent period ending in the same month. The company reported earnings per share (EPS) of $1.87, surpassing the consensus estimate by $0.11 per share.
Additionally, Texas Instruments stated that they had achieved a return on equity (ROE) of 50.90%. This performance demonstrates their ability to generate profits relative to their shareholders’ investments. Furthermore, the company’s net margin stands at an impressive 40.84%.
Texas Instruments generated $4.53 billion in revenue during the said quarter compared to analysts’ expectations of $4.37 billion, marking an increase in sales despite challenging market conditions.
It’s important to note that this figure represents a decline of 13.1% when compared year-over-year data from the same quarter last year when EPS was reported at $2.45.
In conclusion, Texas Instruments exhibits resilience within its industry despite various challenges faced by semiconductor companies globally. Its strong financial position and consistent dividend payouts demonstrate stability and confidence in long-term growth. As the company continues to innovate and expand its product portfolio, investors remain optimistic about its prospects for further success.
Texas Instruments Incorporated
TXN
Strong Buy
Updated on: 21/09/2023
Financial Health
Very Healthy
Debt to equity ratio: Buy
Price to earnings ratio: Strong Buy
Price to book ratio: Strong Buy
DCF: Strong Buy
ROE: Buy
Texas Instruments Receives Positive Forecasts and Investor Confidence for FY2023
Texas Instruments Expects Strong Performance in FY2023
In an encouraging development for shareholders of Texas Instruments Incorporated (NASDAQ:TXN), equities researchers at KeyCorp have increased their earnings per share (EPS) estimates for the company’s fiscal year 2023. This forecast suggests growing confidence in the semiconductor giant’s performance amidst a rapidly evolving market.
Upsurge in Earnings Estimates:
KeyCorp analyst J. Vinh has revised projections for Texas Instruments’ earnings to $7.34 per share, up from the previous estimate of $7.33. This upward revision showcases the potential for a promising fiscal year ahead. The consensus estimate for Texas Instruments’ full-year earnings currently stands at $7.41 per share, further reinforcing positive expectations.
Future Outlook:
Additionally, KeyCorp has provided forward-looking estimates for Texas Instruments’ quarterly and full-year earnings in 2024. The projections indicate anticipated growth and suggest that the company is poised to maintain its impressive performance trajectory.
Hedge Fund Activity:
Recent market activity surrounding Texas Instruments reveals investor interest and confidence in the company’s stock value. Several hedge funds have actively bought and sold shares of TXN in recent times, potentially indicating their optimism about future growth prospects.
Fairfield Bush & CO., a hedge fund, acquired a new stake in Texas Instruments during the first quarter with an investment value of $56,000. Similarly, Mirae Asset Global Investments Co. Ltd., boosted its holdings by 32.4% during the same period, now owning approximately 996,880 shares worth $182,908,000.
Empirical Financial Services LLC d.b.a Empirical Wealth Management also showed their faith in the semiconductor giant by increasing their holdings by 7.4%. They now own 6,023 shares valued at $1,105,000.
Joining this list is Wsfs Capital Management LLC with a new stake worth $337,000, and Bridgefront Capital LLC, which entered the market with a stake valued at $315,000.
Hedge Funds and Institutional Investors:
Collectively, hedge funds and institutional investors now account for 84.43% of Texas Instruments’ outstanding shares. This highlights their belief in the company’s potential for growth and stability within the industry.
Conclusion:
With KeyCorp analysts revising earnings estimates for Texas Instruments upward, there is growing confidence in the company’s performance for FY2023. This increased optimism is further reinforced by significant hedge fund activity surrounding TXN stock. As we move forward, it will be interesting to observe Texas Instruments’ ability to capitalize on emerging market opportunities while maintaining its position as a leading semiconductor player.
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