Texas Instruments Inc. (NASDAQ: TXN)’s stock price has decreased by -2.84 compared to its previous closing price of 171.20. However, the company has seen a -0.70% decrease in its stock price over the last five trading sessions. Seeking Alpha reported 2024-04-10 that Texas Instruments has underperformed the semiconductor trend in recent years but is now poised for a comeback. Industrial growth expectations and inflation pressure are supporting TXN’s future growth. TXN is a key player in critical supply chains, with a broad product portfolio and strategic investments. It offers steady returns and a solid foundation for future growth.
Is It Worth Investing in Texas Instruments Inc. (NASDAQ: TXN) Right Now?
The price-to-earnings ratio for Texas Instruments Inc. (NASDAQ: TXN) is above average at 23.52x, Company’s 36-month beta value is 1.02.Analysts have differing opinions on the stock, with 8 analysts rating it as a “buy,” 6 as “overweight,” 17 as “hold,” and 1 as “sell.”
The public float for TXN is 907.80M, and currently, short sellers hold a 2.06% ratio of that floaft. The average trading volume of TXN on April 15, 2024 was 5.57M shares.
TXN’s Market Performance
TXN’s stock has seen a -0.70% decrease for the week, with a -3.68% drop in the past month and a 0.44% gain in the past quarter. The volatility ratio for the week is 1.94%, and the volatility levels for the past 30 days are at 1.99% for Texas Instruments Inc. The simple moving average for the past 20 days is -2.54% for TXN’s stock, with a 1.04% simple moving average for the past 200 days.
Analysts’ Opinion of TXN
Many brokerage firms have already submitted their reports for TXN stocks, with TD Cowen repeating the rating for TXN by listing it as a “Market Perform.” The predicted price for TXN in the upcoming period, according to TD Cowen is $160 based on the research report published on January 24, 2024 of the current year 2024.
Cantor Fitzgerald, on the other hand, stated in their research note that they expect to see TXN reach a price target of $180. The rating they have provided for TXN stocks is “Neutral” according to the report published on January 23rd, 2024.
UBS gave a rating of “Buy” to TXN, setting the target price at $195 in the report published on January 19th of the current year.
TXN Trading at -0.51% from the 50-Day Moving Average
After a stumble in the market that brought TXN to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -11.58% of loss for the given period.
Volatility was left at 1.99%, however, over the last 30 days, the volatility rate increased by 1.94%, as shares sank -2.81% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +3.88% upper at present.
During the last 5 trading sessions, TXN fell by -0.70%, which changed the moving average for the period of 200-days by -5.66% in comparison to the 20-day moving average, which settled at $170.43. In addition, Texas Instruments Inc. saw -2.42% in overturn over a single year, with a tendency to cut further losses.
Insider Trading
Reports are indicating that there were more than several insider trading activities at TXN starting from BLINN MARK A, who sale 1,744 shares at the price of $159.85 back on Jan 31 ’24. After this action, BLINN MARK A now owns 11,693 shares of Texas Instruments Inc., valued at $278,776 using the latest closing price.
KIRK RONALD, the Director of Texas Instruments Inc., sale 12,299 shares at $145.51 during a trade that took place back on Nov 13 ’23, which means that KIRK RONALD is holding 13,637 shares at $1,789,602 based on the most recent closing price.
Stock Fundamentals for TXN
Current profitability levels for the company are sitting at:
- 0.42 for the present operating margin
- 0.63 for the gross margin
The net margin for Texas Instruments Inc. stands at 0.37. The total capital return value is set at 0.25. Equity return is now at value 41.15, with 21.75 for asset returns.
Based on Texas Instruments Inc. (TXN), the company’s capital structure generated 0.4 points at debt to capital in total, while cash flow to debt ratio is standing at 0.57. The debt to equity ratio resting at 0.66. The interest coverage ratio of the stock is 20.77.
Currently, EBITDA for the company is 9.01 billion with net debt to EBITDA at 0.92. When we switch over and look at the enterprise to sales, we see a ratio of 9.1. The receivables turnover for the company is 7.67for trailing twelve months and the total asset turnover is 0.54. The liquidity ratio also appears to be rather interesting for investors as it stands at 4.55.
Conclusion
In a nutshell, Texas Instruments Inc. (TXN) has experienced a bad performance in recent times. The stock has received mixed “buy” and “hold” ratings from analysts. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
