Texas Instruments Incorporated (TXN) – What Are Brokerages Thinking About This Stock?

Texas Instruments Incorporated (NASDAQ:TXN) has earned an average recommendation of “Hold” from the thirty research firms that are presently covering the firm, Marketbeat Ratings reports. Four investment analysts have rated the stock with a sell recommendation, ten have issued a hold recommendation and sixteen have assigned a buy recommendation to the company. The average 12 month price objective among analysts that have issued a report on the stock in the last year is $304.26.

Several brokerages recently commented on TXN. Susquehanna boosted their price target on Texas Instruments from $300.00 to $340.00 and gave the company a “positive” rating in a research note on Tuesday, July 21st. Mizuho upped their price target on Texas Instruments from $300.00 to $305.00 and gave the company a “neutral” rating in a research report on Thursday, July 23rd. Zacks Research lowered Texas Instruments from a “strong-buy” rating to a “hold” rating in a research note on Monday, September 21st. Sanford C. Bernstein lifted their price objective on Texas Instruments from $250.00 to $290.00 and gave the company a “market perform” rating in a report on Thursday, July 23rd. Finally, Wells Fargo & Company lifted their price objective on Texas Instruments from $300.00 to $310.00 and gave the company an “equal weight” rating in a report on Thursday, July 23rd.

Key Stories Impacting Texas Instruments

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

• Positive Sentiment: Texas Instruments’ history of exceeding earnings expectations, combined with favorable current earnings-estimate trends, has increased the possibility of another quarterly beat. Investors are also watching operating metrics beyond revenue and earnings per share for evidence of sustained demand. Will Texas Instruments Beat Estimates Again in Its Next Earnings Report?
• Positive Sentiment: Analysts expect strength in Texas Instruments’ analog and embedded-processing businesses to support third-quarter results, reflecting demand from industrial, automotive and data-center markets. TXN to Report Q3 Earnings: Should You Buy, Hold or Sell the Stock?
• Positive Sentiment: The board declared a fourth-quarter cash dividend of $1.52 per share, payable Nov. 10 to shareholders of record Oct. 30. The announcement reinforces TXN’s shareholder-return profile and may provide some support for income-focused investors. Texas Instruments Board Declares Fourth Quarter 2026 Quarterly Dividend
• Positive Sentiment: Exchange-traded funds purchased approximately $113.2 million of TXN stock on Oct. 13, indicating institutional or index-related buying interest. ETFs Bought $113.2 Million of Texas Instruments
• Neutral Sentiment: Wall Street’s third-quarter preview emphasizes key indicators such as segment performance, margins and demand trends. These metrics could be more important for TXN’s valuation than simply meeting consensus revenue and EPS estimates. Texas Instruments Q3 Earnings Key Metrics
• Negative Sentiment: Geopolitical tensions remain a risk to semiconductor supply chains and international demand. In addition, TXN’s elevated valuation leaves less room for disappointment if its earnings outlook or margins fall short of expectations. TXN Q3 Earnings Investment Outlook

Insider Activity

In related news, VP Tsedeniya Abraham sold 7,000 shares of Texas Instruments stock in a transaction dated Thursday, August 27th. The shares were sold at an average price of $264.63, for a total transaction of $1,852,410.00. Following the completion of the transaction, 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 sale was disclosed in a document filed with the SEC, which is available at this hyperlink. 0.60% of the stock is owned by company insiders.

Institutional Trading of Texas Instruments

Several large investors have recently added to or reduced their stakes in the company. Contravisory Investment Management Inc. acquired a new stake in Texas Instruments in the 2nd quarter valued at about $1,493,000. Quantbot Technologies LP bought a new position in shares of Texas Instruments in the second quarter worth about $1,962,000. Ieq Capital LLC acquired a new position in shares of Texas Instruments during the second quarter worth approximately $17,709,000. Liontrust Investment Partners LLP acquired a new position in shares of Texas Instruments during the first quarter worth approximately $13,056,000. Finally, Heartland Advisors Inc. bought a new position in Texas Instruments in the 2nd quarter valued at $4,396,000. 84.99% of the stock is owned by institutional investors.

Texas Instruments Stock Performance

Shares of TXN stock traded down $2.64 during trading hours on Friday, reaching $276.48. 7,949,194 shares of the company’s stock were exchanged, compared to its average volume of 5,785,048. Texas Instruments has a fifty-two week low of $152.73 and a fifty-two week high of $334.03. The stock has a market capitalization of $252.50 billion, a P/E ratio of 42.08, a P/E/G ratio of 1.56 and a beta of 1.35. The business has a fifty day moving average price of $271.75 and a 200-day moving average price of $276.42. The company has a quick ratio of 3.44, a current ratio of 4.86 and a debt-to-equity ratio of 0.72.

Texas Instruments (NASDAQ:TXN) last posted its quarterly earnings data on Wednesday, July 22nd. The semiconductor company reported $2.14 earnings per share 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 during the quarter, compared to analysts’ expectations of $5.26 billion. During the same period in the prior year, the business earned $1.41 earnings per share. Texas Instruments’s revenue for the quarter was up 22.8% compared to the same quarter last year. Texas Instruments has set its Q3 2026 guidance at 2.230-2.570 EPS. Analysts predict that Texas Instruments will post 8.46 EPS for the current fiscal year.

Texas Instruments Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, November 10th. Stockholders of record on Friday, October 30th will be issued a $1.52 dividend. This represents a $6.08 annualized dividend and a dividend yield of 2.2%. 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. Texas Instruments’s payout ratio is currently 86.45%.

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.