TXN stock: buy or sell?

TXN stock price: $131.70 1.18% At close on January 17th, 2020

Updated on:
January 17th, 2020

5

Texas Instruments shares gained 1.18% yesterday and peaked a new all time high at $132.04.

Texas Instruments Incorporated designs, manufactures, and sells semiconductors to electronics designers and manufacturers worldwide.

Should I buy TXN stock?

Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Following a trading plan helps to make decisions easier, quicker and with less hesitations. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.

Currently, 2 buy setups work for Texas Instruments stock right now:

Buy setupElegible
New all-time highYes
New 52 week highYes
Price crossing up 200d MANo
100d MA crossing up 200d MANo

Is Texas Instruments stock a buy?

Financial institutions and banks publish stock ratings everyday. At Stocks2.com, we collected 15 ratings published for TXN stock in the last month.

The general sentiment of these ratings is bullish for TXN stock, with 9 positive ratings.
Is TXN a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-9-27Bank of AmericaNeutralBuy
2019-8-29Stifel Nicolausn/aHold
2019-8-22UBS Groupn/aSell
2019-7-24SunTrust Banksn/aHold
2019-7-24Oppenheimern/aOutperform
2019-7-24Morgan Stanleyn/aEqual Weight
2019-7-24Loop Capitaln/aBuy
2019-7-24JPMorgan Chase & Co.n/aOverweight
2019-7-24Jefferies Financial Groupn/aBuy
2019-7-24Deutsche Bankn/aNeutral
2019-7-24Credit Suisse Groupn/aOutperform
2019-7-24CIBCOutperformOutperform
2019-7-24Charter EquityMarket PerformBuy
2019-7-24BMO Capital Marketsn/aOutperform
2019-7-24Barclaysn/aEqual Weight

TXN stock analysis

Daily outlook

Texas Instruments closed yesterday at $131.70 after topping to a new all time high ($132.04) and gained a beatiful 1.18%.

Texas Instruments closed yesterday at $131.70 after reaching a new all time high ($132.04) and gained a beatiful 1.18%. TXN is retaking the upward trend marking a new rising bottom heading to break out over $131.86. In the last 38 days when TXN stock price broke up the SMA100d line, it gained $10.33 (8.51%).

TXN stock chart (daily)

Weekly outlook

Texas Instruments set new all time highs again this week, setting highs to $132.04. Shares ended at $131.70 and stepped up 1.31% during the week.

Price pattern shows an uptrend with two rising tops and bottoms, and now finally trading above the $129.61 resistance. Since mid April 2019 when SMA20w and SMA40w crossed up, TXN price gained $17.26 per share (15.08%). Since early February 2019 when TXN stock price broke up the SMA40w line, it gained $31.73 (31.74%).

TXN stock chart (weekly)

TXN stock price history

TXN stock historical price chart

TXN stock reached all-time highs yesterday with a price of $132.04.

TXN stock price target is $131.30

Nobody can reliably foresee how stock prices may evolve in the future. However, many stock price predictions are published every day by banks, financial institutions and independent analysts. The accuracy of these stock price predictions is not very high, and you should not blindly believe and make decisions only based on what this ratings or price target predictions say. We detected 14 price predictions for TXN stock published in the last month:
TXN stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-9-27Bank of AmericaUpgradesn/a$150.00-
2019-8-29Stifel NicolausLowers Target$122.00$117.00-4.1%
2019-8-22UBS GroupRaises Target$93.00$100.007.5%
2019-7-24SunTrust BanksRaises Targetn/a$133.00-
2019-7-24OppenheimerRaises Target$120.00$130.008.3%
2019-7-24Morgan StanleyRaises Target$106.00$110.003.8%
2019-7-24Loop CapitalRaises Targetn/a$140.00-
2019-7-24JPMorgan Chase & Co.Raises Target$130.00$138.006.2%
2019-7-24Jefferies Financial GroupRaises Target$137.00$170.0024.1%
2019-7-24Deutsche BankSet Price Targetn/a$120.00-
2019-7-24Credit Suisse GroupReiterates$140.00$130.00-7.1%
2019-7-24CIBCReiterates$120.00$130.008.3%
2019-7-24BMO Capital MarketsRaises Target$130.00$150.0015.4%
2019-7-24BarclaysRaises Target$105.00$120.0014.3%
(in average)$120.30$131.309.0%
The price prediction for Texas Instruments stock is $131.30, moving in a range between $170.00 and $100.00. In average, analysts' outlook on TXN price forecast is positive, improving the forecast by a 9.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

After presenting its last earnings report on April, Texas Instruments . As soon as we get its posted EPS from the earnings report, we will update this review.
TXN earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q2-n/a1.09n/a
2017-Q32017-10-241.121.2612.5%
2017-Q42018-01-231.091.090.0%
2018-Q12018-04-241.111.219.0%
2018-Q22018-07-241.371.370.0%
2018-Q32018-10-231.531.583.3%
2018-Q42019-01-231.241.272.4%
2019-Q12019-04-221.13n/an/a
2019-Q2-n/an/an/a
2019-Q3-n/an/an/a

Annual financial results

In 2018, Texas Instruments annual sales jumped a nice 5.50% to $15,784.00 million dollars from $14,961.00 marked in 2017. When comparing 2018 vs 2017, instead, profit margin (that is, the net income divided by revenues) boosted a 10.74% to 35.35%.

To have an updated view of the financial situation of Texas Instruments, we have calculated the trailing twelve month (TTM) sales and income figures. TTM values are the sum of the last 4 quarters and aproximate to an annual fiscal report ending in 2019-Q1 that can be compared to 2018 fiscal year results. Annual Texas Instruments TTM sales up to March 2019 were $15,589.00 and earnings were $5,431.00 M dollars. If we compare this TTM figures with the last reported annuality, we can review Texas Instruments business evolution since December 2018: Annual turnover up to March, compared to lastest yearly report, slightly fell a disappointing -1.24%. Regarding profit margin, Texas Instruments stayed stable -0.51% to 35.35%

TXN annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$12,210 M-$2,130 M17.4%-
2014$13,045 M6.84%$2,821 M21.6%32.44%
2015$13,000 M-0.34%$2,986 M23.0%5.85%
2016$13,370 M2.85%$3,595 M26.9%20.40%
2017$14,961 M11.90%$3,682 M24.6%2.42%
2018$15,784 M5.50%$5,580 M35.4%51.55%
TTM $15,589 M-1.24%$5,431 M34.8%-2.67%

Quarterly financial results

Texas Instruments posted $3,594.00 million in sales for 2019-Q1, a -3.31% decline compared to previous quarter. Reported quarter income marked $1,217.00 million with a profit margin of 33.86%. Profit margin stayed constant a 0.53% compared to previous quarter when profit margin was 33.33%. When comparing sales to same quarter last year, Texas Instruments sales marked a fatal decrease and eased a -5.15%. Looking back to recent quarterly results, Texas Instruments posted 2 positive quarters in a row.
TXN quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q2$3,690 M-$1,050 M28.5%-
2017-Q3$4,120 M11.65%$1,270 M30.8%20.95%
2017-Q4$3,750 M-8.98%$344 M9.2%-72.91%
2018-Q1$3,789 M1.04%$1,366 M36.1%297.09%
2018-Q2$4,017 M6.02%$1,405 M35.0%2.86%
2018-Q3$4,261 M6.07%$1,570 M36.8%11.74%
2018-Q4$3,717 M-12.77%$1,239 M33.3%-21.08%
2019-Q1$3,594 M-3.31%$1,217 M33.9%-1.78%

Texas Instruments ownership

When you are planning to buy a stock, it's always worth to check its ownership structure.

Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For Texas Instruments, 0.28% of all outstanding shares are owned by its staff.

Bearish positions for TXN stock account 0.00%, no big difference from last month.

For a better context understanding, the next table shows ownership data compared to other related companies:

TXN
Market cap$123.1 B
Total shares934.8 M
Float shares932.6 M
  - Institutional holdings (%)88.2%
  - Insider holdings (%)0.3%
Shares in short selling0.0%

TXN summary

Friday, January 17th, 2020
Open$130.76
Close$131.70
Day range$130.44 - $132.04
Previous close$130.16
Session gain1.18%
Average true range$1.87
50d mov avg$123.98
100d mov avg$124.56
200d mov avg$119.28
Daily patternlb02a
Weekly pattern lb02c

Texas Instruments performance

Stocks performance is always measured in comparision to the market or competitors and related stocks in the same industry. For Texas Instruments, the benchmark is made against .
Stock3m6m12m
TXNTexas Instruments2.50%13.84%36.18%

Texas Instruments competitors

Unfortunately, we could not find any public company that could be defined as Texas Instruments competitor. This doesn't mean Texas Instruments does not have any competitor in the market, it's just we could not detected it.

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