Texas Instruments (NASDAQ:TXN) Shares Gap Down Following Analyst Downgrade

Texas Instruments Incorporated (NASDAQ:TXN) gapped down before the market opened on Thursday after TD Cowen lowered their price target on the stock from $360.00 to $340.00. The stock had previously closed at $294.19, but opened at $277.30. TD Cowen currently has a buy rating on the stock. Texas Instruments shares last traded at $284.4690, with a volume of 2,285,128 shares trading hands.

TXN has been the topic of a number of other research reports. KeyCorp increased their price objective on Texas Instruments from $390.00 to $400.00 and gave the company an “overweight” rating in a report on Thursday. Jefferies Financial Group upgraded Texas Instruments from a “hold” rating to a “buy” rating in a report on Friday, May 22nd. Benchmark upped their target price on Texas Instruments from $315.00 to $360.00 and gave the stock a “buy” rating in a research report on Thursday. Susquehanna increased their price target on Texas Instruments from $300.00 to $340.00 and gave the company a “positive” rating in a report on Tuesday. Finally, Wall Street Zen raised shares of Texas Instruments from a “hold” rating to a “buy” rating in a research report on Saturday, July 18th. Fourteen analysts have rated the stock with a Buy rating, ten have issued a Hold rating and four have assigned a Sell rating to the company. According to data from MarketBeat.com, Texas Instruments presently has a consensus rating of “Hold” and an average target price of $308.40.

Insider Activity at Texas Instruments

In related news, CEO Haviv Ilan sold 20,000 shares of the business’s stock in a transaction dated Monday, May 4th. The stock was sold at an average price of $280.32, for a total transaction of $5,606,400.00. Following the completion of the transaction, the chief executive officer owned 204,339 shares of the company’s stock, valued at approximately $57,280,308.48. The trade was a 8.92% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, VP Ahmad Bahai sold 5,000 shares of the stock in a transaction that occurred on Thursday, May 14th. The shares were sold at an average price of $309.13, for a total value of $1,545,650.00. Following the sale, the vice president owned 42,519 shares of the company’s stock, valued at approximately $13,143,898.47. The trade was a 10.52% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 199,143 shares of company stock valued at $56,959,010. 0.60% of the stock is owned by corporate insiders.

Key Headlines Impacting Texas Instruments

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

• Positive Sentiment: Rosenblatt Securities raised its price target to $350 and kept a buy rating, while JPMorgan, TD Cowen, and KeyCorp also reiterated bullish views and lifted targets, suggesting analysts see further upside after the earnings beat. Article
• Positive Sentiment: Texas Instruments reported Q2 earnings of $2.14 per share on revenue of $5.46 billion, both above estimates, with revenue up 22.8% year over year and management issuing stronger forward guidance tied to industrial, data center, and automotive demand.
• Positive Sentiment: Commentary highlighted improving inventory levels, broad demand recovery, and strong free cash flow, all of which support the long-term investment case for TXN.
• Neutral Sentiment: Several articles framed TXN as a strong growth, wide-moat, or undervalued stock, reinforcing a constructive but largely unchanged fundamental outlook.
• Negative Sentiment: The broader semiconductor group has pulled back as investors rotate out of AI chip winners, unwind leveraged trades, and take profits after a powerful run, pressuring TXN along with the rest of the sector.
• Negative Sentiment: Despite the earnings beat and raised outlook, the stock sold off after the report, suggesting expectations were already very high and leaving little room for short-term disappointment.

Institutional Investors Weigh In On Texas Instruments

Several hedge funds have recently modified their holdings of the business. High Point Wealth Management LLC acquired a new stake in shares of Texas Instruments in the fourth quarter worth $25,000. Strategic Wealth Investment Group LLC acquired a new position in Texas Instruments during the 2nd quarter valued at $25,000. Advocate Investing Services LLC acquired a new position in Texas Instruments during the 4th quarter valued at $25,000. Ares Financial Consulting LLC bought a new stake in Texas Instruments in the 4th quarter valued at $26,000. Finally, Cornerstone Financial Management LLC bought a new stake in Texas Instruments in the 4th quarter valued at $27,000. 84.99% of the stock is owned by institutional investors.

Texas Instruments Stock Down 1.9%

The company has a debt-to-equity ratio of 0.72, a quick ratio of 2.94 and a current ratio of 4.86. The company has a market capitalization of $254.44 billion, a price-to-earnings ratio of 42.55, a price-to-earnings-growth ratio of 1.44 and a beta of 1.32. The firm’s 50-day simple moving average is $301.06 and its 200-day simple moving average is $247.37.

Texas Instruments (NASDAQ:TXN) last announced its quarterly earnings data 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 net margin of 31.11% and a return on equity of 35.77%. The business had revenue of $5.46 billion during the quarter, compared to analyst estimates of $5.26 billion. During the same quarter in the prior year, the business earned $1.41 earnings per share. The firm’s revenue for the quarter was up 22.8% on a year-over-year basis. Texas Instruments has set its Q3 2026 guidance at 2.230-2.570 EPS. Sell-side analysts forecast that Texas Instruments Incorporated will post 7.78 earnings per share for the current year.

Texas Instruments Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Tuesday, August 11th. Shareholders of record on Friday, July 31st will be issued a $1.42 dividend. The ex-dividend date of this dividend is Friday, July 31st. This represents a $5.68 annualized dividend and a yield of 2.0%. Texas Instruments’s dividend payout ratio is 86.45%.

Texas Instruments Company Profile

Texas Instruments Inc (NASDAQ: TXN) is a global semiconductor company headquartered in Dallas, Texas, that designs and manufactures analog and embedded processing chips. The company’s products are used across a wide range of end markets, including industrial, automotive, personal electronics, communications and enterprise equipment. TI’s business emphasizes components that condition, convert, manage and move electrical signals—capabilities that are foundational to modern electronic systems.

TI’s product portfolio includes a broad array of analog integrated circuits—such as power management, amplifiers, data converters and interface devices—as well as embedded processors and microcontrollers used to control systems and run real-time applications.