Analysts at BofA/Merrill cut their rating on shares of Texas Instruments Incorporated (NASDAQ:TXN) from Buy to Neutral in their opinion released on January 04. B. Riley FBR analysts again handed out a Neutral rating to TXN stock but they lifted target price for the shares in a flash note to investors on October 22. The price target has been raised from $123 to $110. B. Riley FBR, analysts launched coverage of TXN stock with a Neutral rating, according to their flash note to investors on October 22. Analysts at Goldman issued an upgrade from Sell to Neutral for the stock, in a research note that dated back to October 18.
Short sellers are betting against Texas Instruments Incorporated (NASDAQ:TXN). Looking at the sentiment indicator for the TXN stock we see that the short-interest ratio is at 2.383061 while the average analyst recommendations at 2.5 suggests buying these shares. Between December 14 and December 31, the total number of shorted shares amounted to 18.6 million shares. That was 16.08% more than the total of 16.03 million shares in the space of prior two weeks, which means more traders or funds betting that the stock will go down. Average daily volume for Texas Instruments Incorporated at the December 31st settlement jumped to 7,806,688, as compared to 7,096,406 at the December 14th report. That brought days to cover to a 5.52% increase from the 2.258488 days to cover recorded at the prior short interest data release.
By watching the trading activity of corporate insiders, it will become easier to get a sense of Texas Instruments Incorporated (NASDAQ:TXN)’s prospects. The earliest insider trade took place on 10/31/2018. Flessner Kyle M parted with a total of 16.09 thousand shares of company at average share price of $94. The total for the sales was set at $1.51 million. After this transaction, the Sr. Vice President account balance stood at 43.27 thousand shares. The stock grew 4.88 percent since that insider sale. On 10/25/2018, Craighead Martin S, Director, purchased 10.9 thousand shares at a price per share of $91.7. This added 999.53 thousand shares to the insider’s fortune and the stock saw a 7.51 percent rally in value since the news became public. This transaction left 13.1 thousand shares in the Director account. On 07/31/2018, Sr. Vice President Anderson Stephen A. performed a sale transaction worth $2.82 million. This sale at $111.55 each has eliminated 25.32 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded -11.62 percent decrease since the transaction was reported. The insider now is left with 105.84 thousand shares remaining in the account. Anderskouv Niels, who performs the Sr. Vice President job, sold 82.4 thousand shares for $9.07 million. The disposal occurred on 05/14/2018 was priced at $110.09 per share. The share price plunged -10.45 percent since the reporting date. Anderskouv Niels now left with a stake of 146.16 thousand TXN stock worth $14.41 million after the insider selling.
Texas Instruments Incorporated (TXN) is expected to jump by 11.64 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $139-month high price target. This represents a whopping 40.99 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $109, which represents a return potential of 10.56 percent when compared to the closing price of the stock of $98.59 on Friday, January 11. The lowest price target for the stock is $89 — slightly more than -9.73 percent from TXN’s current share price.
The shares are currently floating around the first support level of $97.24. Below this, the next support is placed in the zone of $95.9. Till the time, the TXN stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 58.92 on daily chart, which may remain a cause for concern. If the price breaks below $95.9 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $99.5 mark may result into a pull-back move towards $100.42 level.
TXN shares accumulated 0.87 points or 0.89 percent on Friday to $98.59 with a light trade volume of 4.728 million shares. After opening the session at $97.03, the shares went as high as $99.07 and as low as $96.8098, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $95.5 billion and now has 969 million shares outstanding. Texas Instruments Incorporated (TXN) stock has gained 4.28 percent of market value in 21 trading days.
TXN stock has a trailing 3-year beta of 1.19, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was $4.68 a share in the trailing twelve months. The stock’s value has surged 4.33 percent year to date (YTD) against a decline of -10.13 percent in 12 month’s time. The company’s shares still trade -18.35 percent away from its 1-year high of $120.75 and 12.42 percent up from 52-week low of $87.70. The average consensus rating on the company is 2.5, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.
Shares of Texas Instruments Incorporated (TXN) are trading at a P/E ratio of 20.59 times earnings reported for the past 12 months. The industry TXN operates in has an average P/E of 7.69. Its P/E ratio went as low as 19.42X and as high as 28.5 over the 5-year span. Further, it is sporting a 6.04 on the Price-to-Sales ratio. Compare this with the industry average P/S of 12.94. 65.2 percent is the gross profit margin for Texas Instruments Incorporated and operating margin sits at 42.7 percent. Along with this, the net profit margin is 29.4 percent.