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

Shares of Texas Instruments Incorporated (NASDAQ:TXN) gapped down before the market opened on Monday after Morgan Stanley lowered their price target on the stock from $197.00 to $192.00. The stock had previously closed at $182.60, but opened at $175.88. Morgan Stanley currently has an underweight rating on the stock. Texas Instruments shares last traded at $177.83, with a volume of 1,609,364 shares.

TXN has been the topic of several other research reports. Cowen reiterated a “hold” rating on shares of Texas Instruments in a report on Wednesday, June 25th. Mizuho decreased their price target on Texas Instruments from $205.00 to $200.00 and set a “neutral” rating on the stock in a report on Wednesday, July 23rd. Robert W. Baird increased their target price on Texas Instruments from $175.00 to $220.00 and gave the company an “outperform” rating in a research note on Wednesday, July 23rd. Benchmark restated a “buy” rating and set a $220.00 target price on shares of Texas Instruments in a report on Monday, September 8th. Finally, Stifel Nicolaus raised their target price on Texas Instruments from $160.00 to $192.00 and gave the stock a “hold” rating in a report on Friday, July 18th. Two research analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating, thirteen have assigned a Hold rating and four have assigned a Sell rating to the company. According to MarketBeat.com, the company currently has an average rating of “Hold” and an average target price of $213.82.

Insider Activity at Texas Instruments

In other news, VP Ahmad Bahai sold 1,500 shares of the firm’s stock in a transaction dated 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 $7,984,624.05. This trade represents a 3.71% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. 0.57% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Texas Instruments

A number of hedge funds have recently modified their holdings of the business. Strategic Wealth Investment Group LLC acquired a new stake in Texas Instruments in the 2nd quarter valued at approximately $25,000. Cloud Capital Management LLC acquired a new stake in Texas Instruments in the 1st quarter valued at approximately $28,000. Copia Wealth Management acquired a new stake in Texas Instruments in the 4th quarter valued at approximately $30,000. Dagco Inc. acquired a new stake in Texas Instruments in the 1st quarter valued at approximately $32,000. Finally, CBIZ Investment Advisory Services LLC raised its position in Texas Instruments by 67.6% in the 1st quarter. CBIZ Investment Advisory Services LLC now owns 186 shares of the semiconductor company’s stock valued at $33,000 after buying an additional 75 shares during the last quarter. Institutional investors and hedge funds own 84.99% of the company’s stock.

Texas Instruments Stock Performance

The stock has a 50-day moving average of $197.22 and a 200-day moving average of $186.16. The firm has a market cap of $162.01 billion, a price-to-earnings ratio of 32.64, a price-to-earnings-growth ratio of 2.98 and a beta of 1.02. The company has a debt-to-equity ratio of 0.86, a quick ratio of 3.88 and a current ratio of 5.81.

Texas Instruments (NASDAQ:TXN) last announced its earnings results on Tuesday, July 22nd. The semiconductor company reported $1.41 earnings per share (EPS) 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 business had revenue of $4.45 billion for the quarter, compared to analyst estimates of $4.31 billion. During the same quarter last year, the firm earned $1.17 EPS. Texas Instruments’s revenue for the quarter was up 16.4% compared to the same quarter last year. 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 EPS for the current fiscal year.

Texas Instruments Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Tuesday, August 12th. Investors of record on Thursday, July 31st were given a $1.36 dividend. This represents a $5.44 dividend on an annualized basis and a yield of 3.1%. The ex-dividend date of this dividend was Thursday, July 31st. Texas Instruments’s dividend payout ratio (DPR) is currently 99.63%.

About Texas Instruments

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.