Texas Instruments (NASDAQ:TXN) Stock Rating Lowered by Zacks Research

Texas Instruments (NASDAQ:TXN) was downgraded by equities researchers at Zacks Research from a “strong-buy” rating to a “hold” rating in a research report issued to clients and investors on Monday, Zacks reports.

Several other equities analysts also recently commented on TXN. Benchmark boosted their target price on shares of Texas Instruments from $315.00 to $360.00 and gave the stock a “buy” rating in a report on Thursday, July 23rd. TD Cowen cut their target price on shares of Texas Instruments from $360.00 to $340.00 and set a “buy” rating for the company in a research note on Thursday, July 23rd. KeyCorp lifted their price target on shares of Texas Instruments from $390.00 to $400.00 and gave the company an “overweight” rating in a report on Thursday, July 23rd. Stifel Nicolaus boosted their price target on shares of Texas Instruments from $340.00 to $360.00 and gave the stock a “buy” rating in a research note on Wednesday, June 24th. Finally, Wall Street Zen raised shares of Texas Instruments from a “hold” rating to a “buy” rating in a report on Saturday, July 18th. One research analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating, nine have assigned a Hold rating and four have issued a Sell rating to the company. According to MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus price target of $312.12.

Texas Instruments Price Performance

NASDAQ:TXN opened at $271.41 on Monday. The stock has a market cap of $247.87 billion, a PE ratio of 41.31, a P/E/G ratio of 1.52 and a beta of 1.33. The company has a quick ratio of 3.44, a current ratio of 4.86 and a debt-to-equity ratio of 0.72. The business’s 50-day simple moving average is $271.60 and its two-hundred day simple moving average is $265.61. Texas Instruments has a 52 week low of $152.73 and a 52 week high of $334.03.

Texas Instruments (NASDAQ:TXN) last issued its earnings results on Wednesday, July 22nd. The semiconductor company reported $2.14 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.91 by $0.23. Texas Instruments had a return on equity of 35.77% and a net margin of 31.11%.The company had revenue of $5.46 billion for the quarter, compared to the consensus estimate of $5.26 billion. During the same quarter last year, the company earned $1.41 EPS. The firm’s quarterly revenue was up 22.8% on a year-over-year basis. Texas Instruments has set its Q3 2026 guidance at 2.230-2.570 EPS. As a group, analysts forecast that Texas Instruments will post 8.45 EPS for the current fiscal year.

Insider Activity

In other news, VP Tsedeniya Abraham sold 7,000 shares of the firm’s stock in a transaction that occurred on Thursday, August 27th. The stock was sold at an average price of $264.63, for a total value of $1,852,410.00. Following the completion of the sale, the vice president directly owned 23,181 shares of the company’s stock, valued at $6,134,388.03. This trade represents a 23.19% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 0.60% of the stock is owned by insiders.

Institutional Trading of Texas Instruments

Several hedge funds and other institutional investors have recently bought and sold shares of TXN. Andra AP fonden lifted its position in Texas Instruments by 6.3% in the second quarter. Andra AP fonden now owns 134,686 shares of the semiconductor company’s stock worth $40,146,000 after buying an additional 8,000 shares during the last quarter. Wellington Altus USA Inc. increased its position in Texas Instruments by 11.3% during the second quarter. Wellington Altus USA Inc. now owns 472 shares of the semiconductor company’s stock valued at $141,000 after acquiring an additional 48 shares during the last quarter. Anchor Investment Management LLC raised its stake in shares of Texas Instruments by 1.7% in the second quarter. Anchor Investment Management LLC now owns 18,396 shares of the semiconductor company’s stock valued at $5,483,000 after acquiring an additional 303 shares during the period. Talon Private Wealth LLC purchased a new stake in shares of Texas Instruments in the second quarter valued at $222,000. Finally, ABS Direct Equity Fund LLC bought a new stake in shares of Texas Instruments in the 2nd quarter worth about $89,000. Hedge funds and other institutional investors own 84.99% of the company’s stock.

Key Stories Impacting Texas Instruments

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

• Positive Sentiment: AI, robotics and industrial demand support the outlook. Analysts and fund managers view Texas Instruments as a key supplier of analog and mixed-signal chips used in data centers, robotics, automotive electrification and factory automation. The company’s products regulate power and connect digital systems to the physical world, giving TXN exposure to the buildout of AI infrastructure. Don’t Sleep On Analog Semiconductors
• Positive Sentiment: Recent results showed strong operating momentum. Second-quarter revenue increased 22.8% year over year to $5.46 billion, while earnings per share of $2.14 exceeded the $1.91 consensus estimate. Management guided to third-quarter EPS of $2.23-$2.57, implying continued strength. Commentators also cited 28% trailing operating cash flow less capital expenditures margin and a stronger, more delevered balance sheet. Texas Instruments: Time For Analog To Shine
• Positive Sentiment: Analyst sentiment and shareholder returns are supportive. Brokerage recommendations average a Buy or Moderate Buy, and one comparison cited TXN’s stronger cash generation and profitability relative to loss-making Cerebras Systems. Texas Instruments also raised its quarterly dividend 7% to $1.52 per share, extending its record to 23 consecutive annual increases. Texas Instruments Receives Moderate Buy Rating
• Neutral Sentiment: Valuation leaves less room for error. TXN trades at a premium earnings multiple after its recovery, and one analysis rates the shares as Accumulate below $271, Hold from $271-$345, and Distribute above $345. This suggests investors may require further earnings growth to justify additional gains. AI Infrastructure Boom Fuels Texas Instruments’ Rally
• Negative Sentiment: Momentum signals are mixed. Despite the recent rally and above-average trading volume, Zacks noted that earnings-estimate revisions do not clearly indicate continued strength. TXN therefore remains sensitive to any slowdown in semiconductor demand, inventory normalization or AI-infrastructure spending. Texas Instruments: Is Further Upside Left?

Texas Instruments Company Profile

Texas Instruments Incorporated (NASDAQ:TXN) designs and manufactures semiconductors used in industrial, automotive, personal electronics, communications equipment and enterprise systems. The company’s portfolio is led by analog chips, which manage power, sensing and signal processing, and embedded processing products, including microcontrollers and processors that control electronic systems.

Texas Instruments also develops products such as data converters, amplifiers, interface and connectivity devices, motor drivers, power-management semiconductors and calculators.