Texas Instruments (NASDAQ:TXN) Downgraded to “Hold” Rating by Zacks Research

Texas Instruments (NASDAQ:TXN) was downgraded by equities research analysts at Zacks Research from a “strong-buy” rating to a “hold” rating in a research report issued on Monday, Zacks reports.

A number of other brokerages have also recently commented on TXN. Benchmark lifted their price objective on shares of Texas Instruments from $315.00 to $360.00 and gave the stock a “buy” rating in a research note on Thursday, July 23rd. Citigroup restated a “buy” rating on shares of Texas Instruments in a research report on Tuesday, July 14th. Wells Fargo & Company increased their price target on shares of Texas Instruments from $300.00 to $310.00 and gave the company an “equal weight” rating in a report on Thursday, July 23rd. Morgan Stanley lifted their price target on Texas Instruments from $230.00 to $255.00 and gave the stock an “underweight” rating in a research report on Thursday, July 23rd. Finally, Evercore reissued an “outperform” rating and set a $330.00 price objective on shares of Texas Instruments in a research note on Thursday, July 23rd. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating, nine have assigned a Hold rating and four have assigned a Sell rating to the company. According to data from MarketBeat.com, Texas Instruments presently has an average rating of “Hold” and a consensus target price of $312.12.

Texas Instruments Stock Performance

NASDAQ TXN opened at $271.41 on Monday. The company has a debt-to-equity ratio of 0.72, a current ratio of 4.86 and a quick ratio of 3.44. Texas Instruments has a 1-year low of $152.73 and a 1-year high of $334.03. The business has a 50 day simple moving average of $271.60 and a two-hundred day simple moving average of $265.61. The stock has a market capitalization of $247.87 billion, a PE ratio of 41.31, a P/E/G ratio of 1.52 and a beta of 1.33.

Texas Instruments (NASDAQ:TXN) last posted its earnings results on Wednesday, July 22nd. The semiconductor company reported $2.14 EPS for the quarter, beating analysts’ consensus estimates of $1.91 by $0.23. Texas Instruments had a return on equity of 35.77% and a net margin of 31.11%.The firm had revenue of $5.46 billion during the quarter, compared to the consensus estimate of $5.26 billion. During the same period in the prior year, the company earned $1.41 EPS. The company’s quarterly revenue was up 22.8% compared to the same quarter last year. Texas Instruments has set its Q3 2026 guidance at 2.230-2.570 EPS. On average, research analysts predict that Texas Instruments will post 8.45 EPS for the current fiscal year.

Insider Activity

In other news, VP Tsedeniya Abraham sold 7,000 shares of the firm’s stock in a transaction dated Thursday, August 27th. The shares were sold at an average price of $264.63, for a total value of $1,852,410.00. Following the completion of the sale, the vice president owned 23,181 shares in the company, valued at approximately $6,134,388.03. This trade represents a 23.19% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Company insiders own 0.60% of the company’s stock.

Institutional Trading of Texas Instruments

Several institutional investors have recently added to or reduced their stakes in the company. HBW Advisory Services LLC boosted its position in Texas Instruments by 2.2% in the first quarter. HBW Advisory Services LLC now owns 1,730 shares of the semiconductor company’s stock worth $336,000 after purchasing an additional 37 shares during the last quarter. Montz Harcus Wealth Management LLC increased its position in shares of Texas Instruments by 2.9% during the 1st quarter. Montz Harcus Wealth Management LLC now owns 1,338 shares of the semiconductor company’s stock valued at $260,000 after purchasing an additional 38 shares during the last quarter. Livforsakringsbolaget Skandia Omsesidigt increased its position in shares of Texas Instruments by 0.6% during the 1st quarter. Livforsakringsbolaget Skandia Omsesidigt now owns 5,960 shares of the semiconductor company’s stock valued at $1,157,000 after purchasing an additional 38 shares during the last quarter. Absher Wealth Management LLC lifted its stake in shares of Texas Instruments by 1.0% in the 1st quarter. Absher Wealth Management LLC now owns 4,223 shares of the semiconductor company’s stock worth $820,000 after purchasing an additional 42 shares during the period. Finally, Severin Investments LLC boosted its holdings in shares of Texas Instruments by 3.3% in the first quarter. Severin Investments LLC now owns 1,349 shares of the semiconductor company’s stock worth $262,000 after buying an additional 43 shares during the last quarter. Institutional investors own 84.99% of the company’s stock.

Texas Instruments News Summary

Here are the key news stories impacting Texas Instruments this week:

• Positive Sentiment: AI, robotics and industrial demand support the outlook. Analysts and fund managers view Texas Instruments as a key supplier of analog and mixed-signal chips used in data centers, robotics, automotive electrification and factory automation. The company’s products regulate power and connect digital systems to the physical world, giving TXN exposure to the buildout of AI infrastructure. Don’t Sleep On Analog Semiconductors
• Positive Sentiment: Recent results showed strong operating momentum. Second-quarter revenue increased 22.8% year over year to $5.46 billion, while earnings per share of $2.14 exceeded the $1.91 consensus estimate. Management guided to third-quarter EPS of $2.23-$2.57, implying continued strength. Commentators also cited 28% trailing operating cash flow less capital expenditures margin and a stronger, more delevered balance sheet. Texas Instruments: Time For Analog To Shine
• Positive Sentiment: Analyst sentiment and shareholder returns are supportive. Brokerage recommendations average a Buy or Moderate Buy, and one comparison cited TXN’s stronger cash generation and profitability relative to loss-making Cerebras Systems. Texas Instruments also raised its quarterly dividend 7% to $1.52 per share, extending its record to 23 consecutive annual increases. Texas Instruments Receives Moderate Buy Rating
• Neutral Sentiment: Valuation leaves less room for error. TXN trades at a premium earnings multiple after its recovery, and one analysis rates the shares as Accumulate below $271, Hold from $271-$345, and Distribute above $345. This suggests investors may require further earnings growth to justify additional gains. AI Infrastructure Boom Fuels Texas Instruments’ Rally
• Negative Sentiment: Momentum signals are mixed. Despite the recent rally and above-average trading volume, Zacks noted that earnings-estimate revisions do not clearly indicate continued strength. TXN therefore remains sensitive to any slowdown in semiconductor demand, inventory normalization or AI-infrastructure spending. Texas Instruments: Is Further Upside Left?

Texas Instruments Company Profile

Texas Instruments Incorporated (NASDAQ:TXN) designs and manufactures semiconductors used in industrial, automotive, personal electronics, communications equipment and enterprise systems. The company’s portfolio is led by analog chips, which manage power, sensing and signal processing, and embedded processing products, including microcontrollers and processors that control electronic systems.

Texas Instruments also develops products such as data converters, amplifiers, interface and connectivity devices, motor drivers, power-management semiconductors and calculators.