Texas Instruments (NASDAQ:TXN) Lowered to Hold Rating by Zacks Research

Zacks Research downgraded shares of Texas Instruments (NASDAQ:TXN) from a strong-buy rating to a hold rating in a report issued on Monday,Zacks reports.

Other analysts have also recently issued research reports about the company. Evercore reissued an “outperform” rating and set a $330.00 price objective on shares of Texas Instruments in a report on Thursday, July 23rd. Stifel Nicolaus upped their price target on Texas Instruments from $340.00 to $360.00 and gave the company a “buy” rating in a research report on Wednesday, June 24th. Susquehanna increased their price target on shares of Texas Instruments from $300.00 to $340.00 and gave the stock a “positive” rating in a report on Tuesday, July 21st. Robert W. Baird raised their price objective on shares of Texas Instruments from $300.00 to $385.00 and gave the company an “outperform” rating in a research report on Thursday, July 23rd. Finally, Arete Research set a $405.00 price objective on shares of Texas Instruments and gave the company a “buy” rating in a research note on Wednesday, July 29th. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating, nine have issued a Hold rating and four have given a Sell rating to the company. According to data from MarketBeat, Texas Instruments has an average rating of “Hold” and an average target price of $312.12.

Texas Instruments Stock Up 0.2%

Texas Instruments stock opened at $271.41 on Monday. The firm has a 50 day simple moving average of $271.60 and a 200 day simple moving average of $265.61. The company has a current ratio of 4.86, a quick ratio of 3.44 and a debt-to-equity ratio of 0.72. Texas Instruments has a 1-year low of $152.73 and a 1-year high of $334.03. The firm has a market capitalization of $247.87 billion, a price-to-earnings 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 earnings per share (EPS) for the quarter, topping the consensus estimate 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 for the quarter, compared to the consensus estimate of $5.26 billion. During the same quarter in the prior year, the business posted $1.41 earnings per share. The business’s quarterly revenue was up 22.8% on a year-over-year basis. Texas Instruments has set its Q3 2026 guidance at 2.230-2.570 EPS. On average, analysts predict that Texas Instruments will post 8.45 earnings per share for the current year.

Texas Instruments Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, November 10th. Shareholders of record on Friday, October 30th will be paid a $1.52 dividend. The ex-dividend date is Friday, October 30th. This represents a $6.08 dividend on an annualized basis and a yield of 2.2%. This is an increase from Texas Instruments’s previous quarterly dividend of $1.42. Texas Instruments’s dividend payout ratio is currently 86.45%.

Insider Buying and Selling at Texas Instruments

In other news, VP Tsedeniya Abraham sold 7,000 shares of Texas Instruments stock in a transaction dated Thursday, August 27th. The stock was sold at an average price of $264.63, for a total transaction 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 sale was disclosed in a legal filing with the SEC, which can be accessed through this link. 0.60% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Texas Instruments

Several hedge funds have recently bought and sold shares of the stock. HBW Advisory Services LLC boosted its stake in shares of Texas Instruments by 2.2% in the 1st quarter. HBW Advisory Services LLC now owns 1,730 shares of the semiconductor company’s stock valued at $336,000 after purchasing an additional 37 shares during the last quarter. Montz Harcus Wealth Management LLC increased its stake in Texas Instruments by 2.9% in the first 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 in the last quarter. Livforsakringsbolaget Skandia Omsesidigt increased its position in Texas Instruments by 0.6% in the 1st quarter. Livforsakringsbolaget Skandia Omsesidigt now owns 5,960 shares of the semiconductor company’s stock valued at $1,157,000 after buying an additional 38 shares in the last quarter. Absher Wealth Management LLC raised its position in shares of Texas Instruments by 1.0% during the first 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 increased its stake in Texas Instruments by 3.3% during the 1st quarter. Severin Investments LLC now owns 1,349 shares of the semiconductor company’s stock valued at $262,000 after purchasing an additional 43 shares in the last quarter. 84.99% of the stock is currently owned by institutional investors.

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?

About Texas Instruments

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.