Last Updated: 14 Sep 2024
Executive Summary
Texas Instruments Incorporated (TXN) is a leading global semiconductor company with a strong financial performance and a positive outlook. The company's latest stock price of $199.93 reflects its solid fundamentals and growth potential.
Company Overview
Texas Instruments designs and manufactures semiconductors and integrated circuits for electronics manufacturers worldwide. It operates in the analog, embedded processing, and connectivity markets. The company has a global presence with manufacturing facilities in the United States, Europe, and Asia.
Fundamental Analysis
Revenue: TXN's revenue for the trailing twelve months (TTM) is $16.09 billion, showing a modest decline of -0.156% year-over-year.
Earnings: The company's diluted EPS TTM is $5.77, with a trailing PE ratio of 33.97.
Profitability: TXN has a gross profit margin of 0.33 and an operating margin of 0.326, indicating strong profitability.
Return on Equity: The company's return on equity (ROE) TTM is 0.32, demonstrating efficient use of shareholders' equity.
Technical Analysis
Trend: TXN's stock price has been trending sideways in recent months, with support at $190 and resistance at $210.
Moving Averages: The 50-day moving average is $200.41, indicating a neutral trend. The 200-day moving average is $180.35, providing support.
Relative Strength Index (RSI): The RSI is currently at 52.85, indicating that the stock is neither overbought nor oversold.
Short Term Outlook
In the short term, TXN's stock price is expected to remain range-bound between $190 and $210. The company's earnings report for the quarter ending September 2024 will provide key insights into its financial performance and future prospects.
Long Term Outlook
Over the long term, TXN is well-positioned for growth in the semiconductor industry. The company's strong fundamentals, global presence, and innovative products make it an attractive investment opportunity.
Analyst Recommendations
Analysts have a consensus rating of "Hold" for TXN, with 8 "Buy" and 20 "Hold" ratings. The average analyst target price is $207.14, suggesting a potential upside of 3.6%.
Conclusion
Texas Instruments Incorporated is a solid semiconductor company with a strong track record of financial performance and a positive outlook. While the stock price may face some short-term volatility, the company's fundamentals and long-term growth potential make it an attractive investment for investors seeking exposure to the semiconductor industry.
