TXN stock: buy or sell?

TXN stock price: $120.29 -3.93% At close on August 23rd, 2019

Updated on:
August 23rd, 2019

5

Texas Instruments closed today at $120.29 and collapsed a scary -3.93%.

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. Trading strategies are meant for helping you in the decision process of what stocks to choose and when is the best time 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.

Currently, Texas Instruments stock doesn't match any of these trading strategies, so our recommendation is not to buy.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This is not a selling recommendation at all, just it's not the best moment to buy if you follow any of these trading strategies.

Is Texas Instruments stock a buy?

Everyday, hundreds of stock ratings are published by financial analysts to indicate a particular stock's attractiveness. At Stocks2.com, we collected 15 ratings published for TXN stock in the last 30 days.

The general sentiment of these ratings is bullish for TXN stock, with 8 positive ratings.
Is TXN a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
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
2019-4-30Wells Fargo & CoMarket PerformMarket Perform
2019-4-30Royal Bank of Canadan/aSector Perform

TXN stock analysis

Daily outlook

Shares of Texas Instruments collapsed a scary -3.93% and closed at $120.29.

Texas Instruments closed today at $120.29 and collapsed a scary -3.93%. From a daily perspective, TXN is in a short term uptrend after plotting its last bottom ($118.73, on Aug 15th) higher than the previous bottom, and its last top ($126.60, yesterday) also over the previous top. Now trading in between its last bottom and last top TXN might consolidate in a plain range, waiting to break out over $126.60 or down under $118.73. Since last April when SMA100d and SMA200d crossed up, TXN price gained $5.04 per share (4.37%). On June TXN price bounced up over the SMA of 100 days demonstrating to be a significant support for this stock. On July/29, TXN hit a new all time high, pushing higher than on Jul 24th tops. Check different trading setups that use ATHs as triggers.

TXN stock chart (daily)

Weekly outlook

Shares of Texas Instruments decreased a tragic -2.06% this week. Late July TXN rocketed an extraordinary 8.50% in just one week.

Price pattern shows an uptrend with two rising tops and bottoms, and now trading upwards to the $129.60 resistance. Not so far away is the last price record Texas Instruments marked late July. Since SMA20d and SMA40w crossed up by mid April, TXN price climbed $4.98 per share (4.32%). Early February TXN price bounced up over the SMA of 40 weeks that acted as support stopping new slides.

TXN stock chart (weekly)

TXN stock price history

TXN stock historical price chart

TXN stock reached all-time highs on Jul/29 with a price of $129.60.

TXN stock price target is $125.30

Predicting the price evolution of a stock or any financial instrument in a reliable and repeatable way is probably impossible. However, many stock price predictions are published every day by banks, financial institutions and independent analysts. We do not recommend to follow these stock price predictions without a critical thinking from your side, as their accuracy is usually low. We found 13 price targets for Texas Instruments stock published in the last month:
TXN stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
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%
2019-4-30Wells Fargo & CoLowers Target$63.00$58.00-7.9%
(in average)$114.40$125.3010.0%
Moving in a range from $170.00 and $58.00, the price target for TXN stock is $125.30. In average, analysts' outlook on TXN price forecast is positive, upgrading the prediction by a 10.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

Since April, when Texas Instruments presented its last earnings report, it raised a nice 5.96%. As soon as we get its posted EPS from the earnings report, we will extend this report.
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

Compared to 2017, last anual sales report draw a beatiful growth of 5.50% to $15,784.00 million dollars. When comparing 2018 vs 2017, slightly better, profit margin (that is, the net income divided by revenues) skyrocketed a 10.74% to 35.35%.

Texas Instruments presents anual results in December, and to evaluate its evolution since then, we estimate annual sales and income figures by adding results from the last 4 quarters. This is called TTM (or Twelve Trailing Months). So, Texas Instruments TTM sales up to March 2019 were $15,589.00 and income $5,431.00 M dollars. When comparing this TTM figures with the last reported annuality, we can esteem Texas Instruments business evolution since December 2018: Annual turnover up to March, compared to lastest yearly report, depreciated a bad -1.24%. In line, profit margin (net income/sales) remained steady at 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 reported $3,594.00 M in revenues for 2019-Q1, a -3.31% less compared to previous quarter. Reported quarter earnings marked $1,217.00 million with a profit margin of 33.86%. Profit margin stayed steady a 0.53% compared to previous quarter when profit margin was 33.33%. When comparing turnover to same quarter last year, Texas Instruments sales marked a fatal correction 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 invest in a stock, it's worth to check its ownership structure.

Texas Instruments shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 0.29% of all shares.

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

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

TXNADIINTCMXIMNVDA
Market cap$118.3 B$40.2 B$202.3 B$14.9 B$104.4 B
Total shares983.1 M369.8 M4,500.0 M272.4 M609.0 M
Float shares931.0 M368.3 M4,430.0 M270.5 M584.5 M
  - Institutional holdings (%)88.0%92.5%68.8%100.0%72.8%
  - Insider holdings (%)0.3%0.3%0.1%0.7%4.3%
Shares in short selling0.0%0.0%0.0%0.0%0.0%

TXN summary

Friday, August 23rd, 2019
Open$124.12
Close$120.29
Day range$119.84 - $125.09
Previous close$125.21
Session gain-3.93%
Average true range$3.22
50d mov avg$118.57
100d mov avg$114.75
200d mov avg$106.84
Daily patternlt06a
Weekly pattern lb02a

Texas Instruments performance

Stocks performance is always measured in comparision to the market or competitors and related stocks in the same industry. In the following table, we compare Texas Instruments to Analog Devices, Intel, Maxim Integrated Products, NVIDIA, ON Semiconductor, QUALCOMM and STMicroelectronics:
Stock3m6m12m
TXNTexas Instruments15.18%13.51%8.94%
ADIAnalog Devices10.98%3.66%12.28%
INTCIntel1.56%-13.24%-3.23%
MXIMMaxim Integrated ...3.27%-0.62%-8.60%
NVDANVIDIA18.28%7.96%-36.77%
ONON Semiconductor4.98%-18.74%-12.12%
QCOMQUALCOMM17.59%48.28%19.65%
STMSTMicroelectronic...18.84%8.09%-9.39%

Texas Instruments competitors

We picked a few stocks to conform a list of Texas Instruments competitors to watch if you are interested in investing in TXN:

Latest TXN stock news