Texas Instruments (NASDAQ:TXN) Upgraded to “Strong-Buy” at Zacks Research

Zacks Research upgraded shares of Texas Instruments (NASDAQ:TXN) from a hold rating to a strong-buy rating in a research report released on Thursday morning,Zacks reports.

Other equities research analysts have also recently issued reports about the stock. Mizuho decreased their price objective on shares of Texas Instruments from $305.00 to $290.00 and set a “neutral” rating for the company in a research report on Thursday. UBS Group lowered their target price on shares of Texas Instruments from $380.00 to $360.00 and set a “buy” rating for the company in a research note on Thursday. JPMorgan Chase & Co. increased their target price on Texas Instruments from $340.00 to $365.00 and gave the company an “overweight” rating in a report on Thursday. Citigroup restated a “buy” rating on shares of Texas Instruments in a research note on Thursday. Finally, Rosenblatt Securities lifted their price target on Texas Instruments from $350.00 to $360.00 and gave the stock a “buy” rating in a report on Thursday. One analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating, eleven have issued a Hold rating and three have issued a Sell rating to the stock. According to MarketBeat.com, Texas Instruments has a consensus rating of “Hold” and an average target price of $311.39.

Texas Instruments Stock Up 1.9%

Shares of NASDAQ:TXN opened at $284.69 on Thursday. The firm’s 50 day moving average price is $271.98 and its 200 day moving average price is $279.47. The stock has a market cap of $259.99 billion, a price-to-earnings ratio of 36.92, a price-to-earnings-growth ratio of 1.52 and a beta of 1.35. Texas Instruments has a fifty-two week low of $152.73 and a fifty-two week high of $334.03. The company has a quick ratio of 3.44, a current ratio of 5.59 and a debt-to-equity ratio of 0.67.

Texas Instruments (NASDAQ:TXN) last posted its quarterly earnings results on Wednesday, October 21st. The semiconductor company reported $2.62 EPS for the quarter, topping the consensus estimate of $2.40 by $0.22. Texas Instruments had a net margin of 34.25% and a return on equity of 40.51%. The company had revenue of $6.05 billion during the quarter, compared to analysts’ expectations of $5.94 billion. During the same quarter in the previous year, the business posted $1.48 EPS. The firm’s revenue was up 27.7% on a year-over-year basis. As a group, equities research analysts predict that Texas Instruments will post 8.69 earnings per share for the current fiscal year.

Texas Instruments Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, November 10th. Shareholders of record on Friday, October 30th will be issued a dividend of $1.52 per share. The ex-dividend date of this dividend is Friday, October 30th. This is a positive change from Texas Instruments’s previous quarterly dividend of $1.42. This represents a $6.08 annualized dividend and a dividend yield of 2.1%. Texas Instruments’s dividend payout ratio is 78.86%.

Insider Activity at Texas Instruments

In other news, VP Tsedeniya Abraham sold 7,000 shares of Texas Instruments stock in a transaction dated Thursday, August 27th. The stock was sold at an average price of $264.63, for a total transaction of $1,852,410.00. Following the sale, the vice president owned 23,181 shares in the company, valued at approximately $6,134,388.03. The trade was a 23.19% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Company insiders own 0.60% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the company. BlackRock Inc. acquired a new stake in Texas Instruments during the 2nd quarter worth $24,607,313,000. Bank of New York Mellon Corp grew its position in Texas Instruments by 33.6% during the 1st quarter. Bank of New York Mellon Corp now owns 16,402,834 shares of the semiconductor company’s stock worth $3,184,446,000 after purchasing an additional 4,129,601 shares during the last quarter. Bank of America Corp DE purchased a new position in Texas Instruments during the 2nd quarter worth $3,700,842,000. Van ECK Associates Corp grew its position in Texas Instruments by 1.5% during the 2nd quarter. Van ECK Associates Corp now owns 12,149,167 shares of the semiconductor company’s stock worth $3,621,302,000 after purchasing an additional 177,511 shares during the last quarter. Finally, Amundi increased its stake in Texas Instruments by 9.0% in the first quarter. Amundi now owns 9,064,214 shares of the semiconductor company’s stock valued at $1,759,727,000 after purchasing an additional 752,139 shares during the period. Hedge funds and other institutional investors own 84.99% of the company’s stock.

Key Texas Instruments News

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

• Positive Sentiment: Texas Instruments reported third-quarter revenue of approximately $6.06 billion, up 28% year over year, while EPS increased 77% to $2.62 and exceeded consensus expectations. Industrial, analog and data-center demand drove the results, with data-center revenue reportedly rising 95%. TXN Q3 Earnings Beat Estimates on Strong Analog, Data Center Demand
• Positive Sentiment: Management’s fourth-quarter revenue guidance, with a midpoint of about $6.05 billion, came in well above analyst expectations. Capacity expansion and broader cyclical recovery could support longer-term revenue, margins and cash flow. TXN Q3 Deep Dive: Industrial and Data Center Growth Drive Outlook Upgrade
• Positive Sentiment: Analyst sentiment strengthened: Zacks upgraded TXN to Rank #1, Freedom Broker raised its rating to Buy with a $330 target, and JPMorgan lifted its target to $365 while maintaining an Overweight rating. Texas Instruments Upgraded to Strong Buy
• Positive Sentiment: New chips for AI data centers—including power-monitoring, high-voltage distribution and timing components—give TXN additional exposure to data-center infrastructure growth. Texas Instruments Debuts Industry First Chips for AI Data Centers
• Neutral Sentiment: Unusual call-option activity and comparisons with Micron indicate bullish trading interest, although Micron was viewed as having stronger AI-driven growth and a lower valuation. Micron vs. Texas Instruments
• Negative Sentiment: TXN’s premium valuation remains a risk if the industrial recovery or AI infrastructure spending slows. Mizuho lowered its target to $290 and kept a Neutral rating, highlighting limited near-term upside. Mizuho Texas Instruments Rating

About Texas Instruments

Texas Instruments Incorporated (NASDAQ:TXN) designs and manufactures analog and embedded semiconductor products used in industrial, automotive, personal electronics, communications equipment, and enterprise systems. Its analog products help manage power, sense and measure real-world signals, and support signal processing, while its embedded processing products provide computing and control functions within electronic systems.

The company offers a broad portfolio of semiconductors, including power-management devices, amplifiers, data converters, microcontrollers, processors, and connectivity products.