This company combines impressive quality with a generous valuation: Texas Instruments Incorporated (TXN)

As of close of business last night, Texas Instruments Incorporated’s stock clocked out at $175.73, up 1.06% from its previous closing price of $173.89. In other words, the price has increased by $+1.84 from its previous closing price. On the day, 4909343 shares were traded. TXN stock price reached its highest trading level at $176.19 during the session, while it also had its lowest trading level at $172.83.

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To gain a deeper understanding of TXN’s stock, we examine its different ratios. It provided that stocks Price–to–Cash (P/C) ratio for the trailing twelve months (TTM) is standing at 17.75 whereas its Price-to-Free Cash Flow (P/FCF) for the term is 98.97. For the most recent quarter (mrq), Quick Ratio is recorded 3.80 and its Current Ratio is at 4.70. In the meantime, Its Debt-to-Equity ratio is 0.60 whereas as Long-Term Debt/Eq ratio is at 0.56.

Upgrades & Downgrades

In addition, analysts’ ratings and any changes thereto give investors an idea of the stock’s future direction. In the most recent recommendation for this company, Truist on January 23, 2023, Reiterated its Hold rating but revised its target price to $177 from $158 previously.

On November 16, 2022, Credit Suisse Downgraded its rating to Neutral which previously was Outperform and also upped its target price recommendation from $185 to $205.

Barclays Upgraded its Underweight to Equal Weight on October 24, 2022, while the target price for the stock was maintained at $150.

Insider Transactions:

Investing in insider trades can also provide an investor with insight into how management views future stock prices. A recent insider transaction in this stock occurred on Feb 13 when BAHAI AHMAD sold 1,200 shares for $176.67 per share. The transaction valued at 212,003 led to the insider holds 30,357 shares of the business.

BLINN MARK A sold 3,068 shares of TXN for $557,425 on Feb 03. The Director now owns 11,773 shares after completing the transaction at $181.69 per share. On Nov 16, another insider, CLARK JANET F, who serves as the Director of the company, sold 9,990 shares for $175.16 each. As a result, the insider received 1,749,851 and left with 8,942 shares of the company.

Valuation Measures:

As of this moment, Texas’s Price-to-Earnings (P/E) ratio for their current fiscal year is 18.69, and their Forward P/E ratio for the next fiscal year is 20.82. The expected Price-to-Earnings-to-Growth (PEG) calculation for the next 5 years is 1.87. For the stock, the TTM Price-to-Sale (P/S) ratio is 8.03 while its Price-to-Book (P/B) ratio in mrq is 10.94.

Stock Price History:

Over the past 52 weeks, TXN has reached a high of $191.34, while it has fallen to a 52-week low of $144.46. The 50-Day Moving Average of the stock is 174.79, while the 200-Day Moving Average is calculated to be 168.41.

Shares Statistics:

It appears that TXN traded 5.21M shares on average per day over the past three months and 4.64M shares per day over the past ten days. A total of 907.00M shares are outstanding, with a floating share count of 905.72M. Insiders hold about 0.21% of the company’s shares, while institutions hold 86.70% stake in the company. Shares short for TXN as of Jan 12, 2023 were 19.52M with a Short Ratio of 16.16M, compared to 21.05M on Dec 14, 2022. Therefore, it implies a Short% of Shares Outstanding of 2.15% and a Short% of Float of 2.16%.

Dividends & Splits

With its trailing 12-month dividend rate of 3.84, TXN has a forward annual dividend rate of 4.96. Against a Trailing Annual Dividend Yield of 2.21%, it implies a Forward Annual Dividend Yield of 2.81%. The stock’s 5-year Average Dividend Yield is 2.50. The current Payout Ratio is 49.30% for TXN, which recently paid a dividend on Feb 13, 2023 with an ex-dividend date of Jan 29, 2023. Stock splits for the company last occurred on May 22, 2000 when the company split stock in a 2:1 ratio.

Earnings Estimates

As of right now, 25 analysts gave their recommendation on the stock of the company. On average, analysts expect EPS of $1.78 for the current quarter, with a high estimate of $1.88 and a low estimate of $1.67, while EPS last year was $2.35. The consensus estimate for the next quarter is $1.82, with high estimates of $1.93 and low estimates of $1.7.

Analysts are recommending an EPS of between $9.03 and $6.88 for the fiscal current year, implying an average EPS of $7.59. EPS for the following year is $8.41, with 26 analysts recommending between $10.11 and $7.16.

Revenue Estimates

In the current quarter, 24 analysts expect revenue to total $4.37B. It ranges from a high estimate of $4.53B to a low estimate of $4.28B. As of the current estimate, Texas Instruments Incorporated’s year-ago sales were $4.91B, an estimated decrease of -10.90% from the year-ago figure. For the next quarter, 24 analysts are estimating revenue of $4.44B, a decrease of -14.70% less than the figure of -$10.90% in the same quarter last year. There is a high estimate of $4.63B for the next quarter, whereas the lowest estimate is $4.29B.

A total of 29 analysts have provided revenue estimates for TXN’s current fiscal year. The highest revenue estimate was $18.8B, while the lowest revenue estimate was $17.08B, resulting in an average revenue estimate of $18.14B. In the same quarter a year ago, actual revenue was $20.03B, down -9.40% from the average estimate. Based on 27 analysts’ estimates, the company’s revenue will be $19.56B in the next fiscal year. The high estimate is $21.93B and the low estimate is $18.33B. The average revenue growth estimate for next year is up 7.80% from the average revenue estimate for this year.