TXN stock: buy or sell?

TXN stock price: $126.67 -1.68% At close on September 20th, 2019

Updated on:
September 20th, 2019

5

After marking all time highs on Sep/12, Texas Instruments dropped -1.68% to $126.67. Friday was the 3rd red session in a row, sliding in full a -2.25%.

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 use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.

None of our preferred buy setups matches with Texas Instruments stock situation right now, hence this is not a suitable entry point.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This doesn't mean TXN will fall in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems.

Is Texas Instruments stock a buy?

Everyday, hundreds of stock ratings are posted by financial analysts to indicate a particular stock's attractiveness. At Stocks2.com, we gathered 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
2019-8-29Stifel 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
2019-4-30Wells Fargo & CoMarket PerformMarket Perform

TXN stock analysis

Daily outlook

Texas Instruments dropped -1.68% today to $126.67 after reaching all time highs on September 12th.

After reaching all time highs on September/12, Texas Instruments dropped -1.68% today to $126.67. On September 12th, TXN hit a new all time high, pushing higher than on July tops. Check different trading setups that use ATHs as triggers. On June TXN price bounced up over the SMA of 100 days demonstrating to be a significant support for this stock.

TXN stock chart (daily)

Weekly outlook

Shares of Texas Instruments closed this week at $126.67 and declined an awful -2.27%.

Not so far away is the last all-time high Texas Instruments marked last week. Since mid April when SMA20w and SMA40w crossed up, TXN price gained $11.36 per share (9.85%). 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 Sep 12th with a price of $130.92.

TXN stock price target is $124.70

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. For the last month we found 14 price targets for TXN stock:
TXN stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
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%
2019-4-30Wells Fargo & CoLowers Target$63.00$58.00-7.9%
(in average)$115.10$124.708.0%
The price prediction for Texas Instruments stock is $124.70, moving in a range between $170.00 and $58.00. In average, analysts' outlook on TXN price target is positive, increasing the target by a 8.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

Since last April, when Texas Instruments published its last earnings report, it . Unfortunately, reported EPS is not yet available in our database.
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 turnover jumped a nice 5.50% to $15,784.00 million USD from $14,961.00 marked in 2017. On the other hand, its profit margin (compared to revenues) boosted to 35.35%, that is $5,580.00 million.

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 income was $5,431.00 M USD. If we compare this TTM figures with the last reported annuality, we can esteem Texas Instruments business evolution since December 2018: Annual revenues up to March, compared to lastest yearly report, slightly fell an ugly -1.24%. Regarding profit margin, Texas Instruments stayed constant -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 M in sales for 2019-Q1, a -3.31% less compared to previous quarter. Reported quarter income marked $1,217.00 M with a profit margin of 33.86%. Profit margin remained constant a 0.53% compared to previous quarter when profit margin was 33.33%. When comparing revenues to same quarter last year, Texas Instruments sales marked a rough 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 company, it's always worth to have a look 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.

The following table compares ownership indicators for other stocks related to Texas Instruments:

TXNADIINTCMXIMNVDA
Market cap$118.3 B$42.8 B$224.7 B$15.9 B$107.8 B
Total shares933.6 M369.4 M4,430.0 M271.3 M609.0 M
Float shares931.0 M367.9 M4,430.0 M269.2 M584.2 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, September 20th, 2019
Open$128.30
Close$126.67
Day range$126.22 - $128.75
Previous close$128.83
Session gain-1.68%
Average true range$2.35
50d mov avg$123.62
100d mov avg$117.06
200d mov avg$109.82
Daily patternlt01c
Weekly pattern

Texas Instruments performance

To measure stock performance is always good to compare with competitors or related stocks. We compared Texas Instruments against Analog Devices, Intel, Maxim Integrated Products, NVIDIA, ON Semiconductor, QUALCOMM and STMicroelectronics in the following table:
Stock3m6m12m
TXNTexas Instruments13.45%16.94%18.46%
ADIAnalog Devices2.46%9.04%25.15%
INTCIntel7.59%-3.54%11.50%
MXIMMaxim Integrated ...1.04%9.84%1.72%
NVDANVIDIA16.71%-0.10%-32.56%
ONON Semiconductor0.41%-9.61%2.14%
QCOMQUALCOMM8.43%40.05%10.40%
STMSTMicroelectronic...17.13%22.63%6.96%

Texas Instruments competitors

One check before investing in any stock is to review a list of its competitors, in this case for Texas Instruments. We chose 7 companies as Texas Instruments competitors as they are in the same industry or have similar market objectives.

Latest TXN stock news