TXN stock: buy or sell?
Dec 1st, 2020
TXN stock brief
- Counting on Tuesday, it's been 3 consecutive sessions in positive for Texas Instruments. Price closed on Tuesday at $163.49 after moving up a 1.39%.
- The price is currently over the upper Bollinger band, which is usually an indicator of a near-term correction
- Texas Instruments Incorporated designs, manufactures, and sells semiconductors to electronics designers and manufacturers worldwide. It operates in two segments, Analog and Embedded Processing.
Should I buy Texas Instruments stock?
All successful traders recommend adhering to a trading strategy and not make decisions based on subjective opinions, rumors or feelings. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best
Is $TXN stock a buy?
In the current situation of Texas Instruments there is just one buy setup eligible:
ATH buy setup
One of the most recommended trading strategies is to buy on All-time Highs (ATH) breakouts. The good point of buying at all-time highs is that price doesn't have upper resistances, and usually it scales rapidly. However, there's the risk of a bulls trap that may trigger your buy order and then drops sharply. That's why a stop loss is always important. Price is now at 0.70% of all-time highs and it can breakout at any time, so if you want to trade this setup it's recommended to setup your order at $164.63. Place your stop-loss at $148.17
|Buy setup||Buy point||Stop loss||Risk|
|ATH buy setup||$164.63||$148.17||10.00%|
Should I sell Texas Instruments stock?
Knowing when to sell a stock is even harder than knowing when to buy it. In the same way as when we have to buy shares, choosing when is the best time to sell is not a haphazard decision, and we must follow our own trading style. When selling, as well as buying, detailed setups are very easy to follow but are only valid for selling shares you already own, not for selling short $TXN stock
As a golden rule, you should never keep an investment that yields higher than expected losses upon purchase. The timing to sell your stock should always be dictated by the stop-loss (automatic or manual)
Is it time to sell Texas Instruments stock?
In the current situation of Texas Instruments there is not any eligible sell setup, so Texas Instruments stock holders with operations in green can keep their positions
Texas Instruments ratings
We don't have any rating published in the last 30 days for Texas Instruments
Texas Instruments stock analysis
Texas Instruments stock started an uptrend last March, and gained an amazing 79.50%. The price shows higher highs and higher lows, and along the way gave some buy points for those who wanted to invest. Latest low was last October, when price bounced at $140.75. On November 19, Texas Instruments broke out above its last top ($154.77) offering a good buy point
Supports and resistances
Price is at all-time highs and there are not upper resistance levels.
The current supports are:
Price readings both above or below the Bollinger Bands tell us that the price has followed a strong trend that has led to extreme highs or lows. In this case, the price is above the upper band, which should mean a short-term adjustment (at least) until it is below the band
Relative strength index
The RSI dropped below the overbought level of 70 last October after just crossing to the overbough zone for 1 day (weak signal). The RSI value on Tuesday was 65.78
Texas Instruments stock price history
Texas Instruments IPO was on Jun 1st, 1972 priced at $0.00 per share1. Since then, TXN stock surged by -, with an average of 0.00% per year. If you had invested $1,000USD in Texas Instruments stock on Jun 1972, it would have a value of $inf today.
1: Adjusted price after possible price splits or reverse-splits
Price target for Texas Instruments stock
Nobody can predict how much a share will be priced tomorrow. However, many stock price predictions are posted every day by banks, financial institutions and independent analysts.
The following table shows the price target released by analysts for the last 30 days. If you are a small trader you don't have to buy or sell based on these forecasts.
We don't have any target price published in the previous month for Texas Instruments.
Earnings and financials
Texas Instruments Incorporated ($TXN) released earnings of $1.45 per share last October, beating the analysts consensus estimate of $1.27 per share. This quarterly report means an earnings surprise of 14.17%. Forecasted turnover was $3.4 billion but Texas Instruments uplifted by 11.28%, posting $3.8 billion.This compares to Earnings of $1.49 per share same quarter last year, so current EPS means a drop of -2.68%. Looking at sales, figures scarcely moved compared to $37.7B same quarter a year ago.
TXN ($TXN) is posting Q4 financial report mid next January. Forecasted for this quarter is $1.32, compared to $1.45 that was reported for Q3.
Texas Instruments competitors
Texas Instruments is part of the Technology sector and the Semiconductors industry, which contain 47 industry peers.
The following are some of Texas Instruments biggest competitors:
|Company||Market cap||Rating||Bullish ratings1|
|Texas Instruments ($TXN)||$145.5B|
|Taiwan Semiconductor ($TSM)||$419.8B||Neutral||0|
1 In the last 30 days.
Texas Instruments performance
To better understand Texas Instruments stock performance you must compare its gains with other related stocks in same sector or industry.. For Texas Instruments, the benchmark is made against Taiwan Semiconductor, NVIDIA, Intel, Qualcomm, Broadcom and AMD.
|Texas Instruments ($TXN)||11.60%||12.40%||31.20%|
|Taiwan Semiconductor ($TSM)||14.90%||21.70%||86.60%|
Please read:The comments given in this article are personal and should not be followed as recommendations for you to buy or sell stocks. The author of this article does not have an understanding of the individual conditions of the reader, his or her finances or what is in his or her best interest at any given time. All users should speak with their financial advisor before buying or selling any securities Viewpoints are provided for education motives only
|Tuesday, December 1st, 2020|
|Day range||$161.63 - $164.31|
|Average true range||$3.71|
|50d mov avg||$149.31|
|100d mov avg||$142.23|
|200d mov avg||$127.74|
|Earnings date||January 20th, 2021|