Texas Instruments Incorporated (NASDAQ:TXN) Relative Strength Index (RSI) is 56.39, with weekly volatility at 1.84% and ATR at 3.42. The TXN stock’s 52-week price range has touched low of $93.09 and a $167.24 high. Intraday shares traded counted 5.56 million, which was -36.21% lower than its 30-day average trading volume of 4.08M. Its shares traded lower over the last trading session, losing -2.35% on 12/09/20. The shares fell to a low of $161.96 before closing at $162.76. TXN’s previous close was $166.68 while the outstanding shares total 917.00M. The firm has a beta of 1.07, a 12-month trailing P/E ratio of 30.76, and a growth ratio of 3.08.
Investors have identified the Semiconductors company Texas Instruments Incorporated as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $145.33 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Texas Instruments Incorporated (TXN) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For TXN, the company has in raw cash 2.82 billion on their books with 550.0 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on a decline. In terms of their assets, the company currently has 9.26 billion total, with 2.19 billion as their total liabilities.
TXN were able to record 3.58 billion as free cash flow during the Q3 2020 quarter of the year, this saw their quarterly net cash flow reduce by 385.0 million. In cash movements, the company had a total of 4.01 billion as operating cash flow.
Potential earnings growth for Texas Instruments Incorporated (TXN)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the Q3 2020 quarter of the year, Texas Instruments Incorporated recorded a total of 3.82 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 1.21% coming in sequential stages and their sales for the Q3 2020 quarter increasing by 15.14%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 1.36 billion trying to sell their products during the last quarter, with the result yielding a gross income of 2.45 billion. This allows shareholders to hold on to 917.00M with the recently reported earning now reading 1.48 cents per share. This is a figure that compared to analyst’s prediction for their Q3 2020 (1.45 cents a share).
Having a look at the company’s valuation, the company is expected to record 5.83 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on TXN sounds very interesting.
Is the stock of TXN attractive?
In related news, Sr. Vice President, Flessner Kyle M sold 24,955 shares of the company’s stock in a transaction that recorded on Nov 09. The sale was performed at an average price of 161.63, for a total value of 4,033,494. As the sale deal closes, the Sr. Vice President, Flessner Kyle M now sold 25,000 shares of the company’s stock, valued at 3,878,613. Also, Sr. Vice President, Whitaker Darla H sold 39,928 shares of the company’s stock in a deal that was recorded on Nov 05. The shares were price at an average price of 155.00 per share, with a total market value of 6,188,840. Following this completion of acquisition, the Sr. Vice President, BAHAI AHMAD now holds 4,000 shares of the company’s stock, valued at 610,951. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.10%.
10 out of 31 analysts covering the stock have rated it a Buy, while 15 have maintained a Hold recommendation on Texas Instruments Incorporated. 5 analysts has assigned a Sell rating on the TXN stock. The 12-month mean consensus price target for the company’s shares has been set at $158.11.