There is no doubt that Texas Instruments Incorporated (TXN) ticks all the boxes.

Texas Instruments Incorporated (NASDAQ: TXN) stock jumped 1.03% on Thursday to $166.05 against a previous-day closing price of $164.36. With 4.07 million shares changed hands, the volume of the stock remained lighter than its average volume of 5.02 million shares. During the session, the Semiconductors company that operates in wider Technology sector, reached to the highest price of $166.64 whereas the lowest price it dropped to was $163.64. The 52-week range on TXN shows that it touched its highest point at $188.12 and its lowest point at $145.97 during that stretch. It currently has a 1-year price target of $183.94. With its current market cap of 150.81 billion, TXN has annualized dividend of $4.96 while the current yield stands at 2.99%. Beta for the stock currently stands at 1.02.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of TXN was up-trending over the past week, with a rise of 0.81%, but this was down by -1.25% over a month. Three-month performance dropped to -6.25% while six-month performance fell -4.78%. The stock gained 2.09% in the past year, while it has gained 0.50% so far this year. A look at the trailing 12-month EPS for TXN yields 8.33 with Next year EPS estimates of 7.88. For the next quarter, that number is 1.81. This implies an EPS growth rate of 13.80% for this year and 7.38% for next year. EPS is expected to grow by 10.00% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 20.80%.

Float and Shares Shorts:

At present, 908.00 million TXN shares are outstanding with a float of 906.00 million shares on hand for trading. On Aug 14, 2023, short shares totaled 15.66 million, which was 1.73% higher than short shares on Jul 13, 2023. In addition to Mr. Haviv Ilan as the firm’s CEO, Pres & Director, Mr. Rafael R. Lizardi serves as its CFO and Sr. VP of Fin. & Operations.

Institutional Ownership:

Through their ownership of 88.40% of TXN’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 52.54% of TXN, in contrast to 34.09% held by mutual funds. Shares owned by individuals account for 0.55%. As the largest shareholder in TXN with 9.31% of the stake, The Vanguard Group, Inc. holds 84,518,834 shares worth 84,518,834. A second-largest stockholder of TXN, BlackRock Fund Advisors, holds 52,977,556 shares, controlling over 5.84% of the firm’s shares. SSgA Funds Management, Inc. is the third largest shareholder in TXN, holding 37,931,129 shares or 4.18% stake. With a 3.11% stake in TXN, the Vanguard Total Stock Market ETF is the largest stakeholder. A total of 28,272,133 shares are owned by the mutual fund manager. The Vanguard 500 Index Fund, which owns about 2.39% of TXN stock, is the second-largest Mutual Fund holder. It holds 21,736,283 shares valued at 3.91 billion. Invesco QQQ Trust holds 1.71% of the stake in TXN, owning 15,500,682 shares worth 2.79 billion.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jun 29, 2023, TXN reported revenue of $5.21B and operating income of $2.79B. The EBITDA in the recently reported quarter was $3.04B and diluted EPS was $2.45.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for TXN since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With TXN analysts setting a high price target of $230.00 and a low target of $130.00, the average target price over the next 12 months is $186.38. Based on these targets, TXN could surge 38.51% to reach the target high and fall by -21.71% to reach the target low. Reaching the average price target will result in a growth of 12.24% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.

Dividends & Yield:

In terms of dividends, TXN has a current ratio of $4.96, which is $4.96 over the trailing 12-months, while a dividend of $3.83 is likely to be paid on average over the next five years. Dividend yield is another indicator that appeals to many investors, and TXN currently yields $2.99. In the past year, TXN’s dividend yield has been $2.99, but when looking at the stock over the past five years, its yield has been $2.57. Accordingly, TXN has a current buyback yield of $1.16. This was $1.16 for the TTM, and it was $2.25 for the past five years.

Summary of Insider Activity:

Insiders traded TXN stock several times over the past three months with 3 Buys and 2 Sells. In these transactions, 26,594 shares were bought while 26,594 shares were sold. The number of buy transactions has increased to 31 while that of sell transactions has risen to 23 over the past year. The total number of shares bought during that period was 237,423 while 118,879 shares were sold.

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