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

Shares of 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 traded.

A number of other equities analysts have also recently weighed in on the company. Stifel Nicolaus increased their price target on Texas Instruments from $340.00 to $360.00 and gave the stock a “buy” rating in a report on Wednesday, June 24th. The Goldman Sachs Group boosted their price objective on shares of Texas Instruments from $200.00 to $225.00 and gave the company a “sell” rating in a report on Thursday. Wells Fargo & Company upped their target price on shares of Texas Instruments from $300.00 to $310.00 and gave the company an “equal weight” rating in a research report on Thursday. JPMorgan Chase & Co. increased their target price on shares of Texas Instruments from $227.00 to $280.00 and gave the stock an “overweight” rating in a research note on Thursday, April 23rd. Finally, Sanford C. Bernstein lifted their price target on shares of Texas Instruments from $250.00 to $290.00 and gave the company a “market perform” rating in a research report on Thursday. Fourteen research analysts have rated the stock with a Buy rating, ten have given a Hold rating and four have issued a Sell rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of “Hold” and an average price target of $308.40.

Insider Buying and Selling at Texas Instruments

In related news, VP Mohammad Yunus sold 51,098 shares of the business’s stock in a transaction on Wednesday, April 29th. The stock was sold at an average price of $270.44, for a total value of $13,818,943.12. Following the sale, the vice president owned 52,856 shares in the company, valued at approximately $14,294,376.64. The trade was a 49.15% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Haviv Ilan sold 20,000 shares of the stock in a transaction dated Monday, May 4th. The stock was sold at an average price of $280.32, for a total value of $5,606,400.00. Following the transaction, the chief executive officer directly owned 204,339 shares in the company, valued at approximately $57,280,308.48. The trade was a 8.92% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders sold 199,143 shares of company stock valued at $56,959,010. Corporate insiders own 0.60% of the company’s stock.

Texas Instruments News Roundup

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 Trading of Texas Instruments

Several hedge funds have recently made changes to their positions in the business. State Street Corp lifted its holdings in Texas Instruments by 0.5% during the 3rd quarter. State Street Corp now owns 43,555,112 shares of the semiconductor company’s stock worth $8,002,381,000 after buying an additional 230,098 shares in the last quarter. Charles Schwab Investment Management Inc. increased its position in shares of Texas Instruments by 6.7% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 24,288,604 shares of the semiconductor company’s stock worth $4,213,832,000 after acquiring an additional 1,517,420 shares during the period. Geode Capital Management LLC raised its stake in shares of Texas Instruments by 1.1% in the fourth quarter. Geode Capital Management LLC now owns 22,865,312 shares of the semiconductor company’s stock valued at $3,952,933,000 after acquiring an additional 248,515 shares in the last quarter. Invesco Ltd. boosted its holdings in Texas Instruments by 10.6% in the fourth quarter. Invesco Ltd. now owns 18,184,514 shares of the semiconductor company’s stock valued at $3,154,831,000 after purchasing an additional 1,749,513 shares during the period. Finally, Bank of New York Mellon Corp boosted its holdings in Texas Instruments by 33.6% in the first quarter. Bank of New York Mellon Corp now owns 16,402,834 shares of the semiconductor company’s stock valued at $3,184,446,000 after purchasing an additional 4,129,601 shares during the period. Institutional investors and hedge funds own 84.99% of the company’s stock.

Texas Instruments Stock Performance

The stock has a market capitalization of $254.44 billion, a PE ratio of 42.55, a price-to-earnings-growth ratio of 1.44 and a beta of 1.32. The company has a quick ratio of 2.94, a current ratio of 4.86 and a debt-to-equity ratio of 0.72. The stock has a fifty day moving average of $301.06 and a 200-day moving average of $247.37.

Texas Instruments (NASDAQ:TXN) last issued its quarterly earnings results on Wednesday, July 22nd. The semiconductor company reported $2.14 earnings per share for the quarter, topping the consensus estimate of $1.91 by $0.23. The company had revenue of $5.46 billion for the quarter, compared to the consensus estimate of $5.26 billion. Texas Instruments had a return on equity of 35.77% and a net margin of 31.11%.Texas Instruments’s revenue was up 22.8% on a year-over-year basis. During the same quarter in the prior year, the business earned $1.41 EPS. Texas Instruments has set its Q3 2026 guidance at 2.230-2.570 EPS. Equities analysts anticipate that Texas Instruments Incorporated will post 7.78 earnings per share for the current fiscal year.

Texas Instruments Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, August 11th. Stockholders of record on Friday, July 31st will be given a dividend of $1.42 per share. The ex-dividend date of this dividend is Friday, July 31st. This represents a $5.68 dividend on an annualized basis and a dividend yield of 2.0%. Texas Instruments’s payout ratio is currently 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.