Texas Instruments Incorporated Stock Buy Hold or Sell Recommendation

TXN Stock  USD 172.87  4.96  2.95%   
Considering the 90-day investment horizon and your above-average risk tolerance, our recommendation regarding Texas Instruments Incorporated is 'Strong Hold'. Macroaxis provides Texas Instruments buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding TXN positions. The advice algorithm takes into account all of Texas Instruments' available fundamental, technical, and predictive indicators you will find on this site. Key drivers impacting Texas Instruments' buy or sell advice are summarized below:
Real Value
159.82
Target Price
179.61
Hype Value
172.86
Market Value
172.87
Naive Value
165.85
A buy or sell recommendation provided by Macroaxis is an automated directive regarding whether to purchase or sell Texas Instruments Incorporated given historical horizon and risk tolerance towards Texas Instruments. When Macroaxis issues a 'buy' or 'sell' recommendation for Texas Instruments Incorporated, the advice is generated through an automated system that utilizes algorithms and statistical models.
  
Check out Texas Instruments Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
In addition, we conduct extensive research on individual companies such as Texas and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards Texas Instruments Incorporated. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in interest.

Execute Texas Instruments Buy or Sell Advice

The Texas recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Texas Instruments Incorporated. Macroaxis does not own or have any residual interests in Texas Instruments Incorporated or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Texas Instruments' advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell Texas InstrumentsBuy Texas Instruments
Strong Hold

Market Performance

Very WeakDetails

Volatility

Very steadyDetails

Hype Condition

Low keyDetails

Current Valuation

OvervaluedDetails

Odds Of Distress

Very LowDetails

Economic Sensitivity

Responds to the marketDetails

Investor Sentiment

InterestedDetails

Analyst Consensus

BuyDetails

Financial Strenth (F Score)

PoorDetails

Financial Leverage

Not RatedDetails

Reporting Quality (M-Score)

Unlikely ManipulatorDetails
For the selected time horizon Texas Instruments Incorporated has a Risk Adjusted Performance of 0.036, Jensen Alpha of (0.09), Total Risk Alpha of (0.25), Sortino Ratio of (0.05) and Treynor Ratio of 0.051
Macroaxis provides recommendation on Texas Instruments to complement and cross-verify current analyst consensus on Texas Instruments Incorporated. Our trade recommendation engine determines the firm's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon. To make sure Texas Instruments is not overpriced, please validate all Texas Instruments fundamentals, including its short ratio, and the relationship between the cash per share and market capitalization . Given that Texas Instruments has a price to book of 9.31 X, we advise you to double-check Texas Instruments Incorporated market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your current risk tolerance and investing horizon.

Texas Instruments Trading Alerts and Improvement Suggestions

Texas Instruments has a poor financial position based on the latest SEC disclosures
Over 89.0% of the company shares are owned by institutional investors
On 13th of February 2024 Texas Instruments paid $ 1.3 per share dividend to its current shareholders
Latest headline from benzinga.com: If You Invested 1000 In This Stock 20 Years Ago, You Would Have 5,600 Today

Texas Instruments Returns Distribution Density

The distribution of Texas Instruments' historical returns is an attempt to chart the uncertainty of Texas Instruments' future price movements. The chart of the probability distribution of Texas Instruments daily returns describes the distribution of returns around its average expected value. We use Texas Instruments Incorporated price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Texas Instruments returns is essential to provide solid investment advice for Texas Instruments.
Mean Return
0.08
Value At Risk
-1.92
Potential Upside
2.63
Standard Deviation
1.40
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Texas Instruments historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Texas Stock Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Texas Instruments is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Texas Instruments Incorporated backward and forwards among themselves. Texas Instruments' institutional investor refers to the entity that pools money to purchase Texas Instruments' securities or originates loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Shares
Bank Of New York Mellon Corp2023-12-31
15.3 M
Morgan Stanley - Brokerage Accounts2023-12-31
13.3 M
T. Rowe Price Associates, Inc.2023-12-31
13.2 M
Franklin Resources Inc2023-12-31
11.9 M
Northern Trust Corp2023-12-31
10.2 M
Norges Bank2023-12-31
9.7 M
Amvescap Plc.2023-12-31
9.4 M
Royal Bank Of Canada2023-12-31
9.3 M
Massachusetts Financial Services Company2023-12-31
8.8 M
Vanguard Group Inc2023-12-31
90 M
Blackrock Inc2023-12-31
76.8 M
Note, although Texas Instruments' institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Texas Instruments Cash Flow Accounts

201920202021202220232024 (projected)
Change To Inventory216M46M45M(847M)(1.2B)(1.2B)
Change In Cash(1M)670M1.5B(1.6B)(86M)(81.7M)
Free Cash Flow5.8B5.5B6.3B5.9B1.3B2.3B
Depreciation954M1.1B992M979M1.2B1.2B
Other Non Cash Items(29M)(107M)(47M)(293M)(292M)(277.4M)
Dividends Paid3.0B3.4B3.9B4.3B(4.6B)(4.3B)
Capital Expenditures847M649M2.5B2.8B5.1B5.3B
Net Income5.0B5.6B7.8B8.7B6.5B6.8B
End Period Cash Flow2.4B3.1B4.6B3.1B3.0B1.5B
Change To Netincome275M83M198M95M109.3M178.9M
Investments(1.1B)(241M)(1.6B)(3.6B)(4.4B)(4.1B)
Change Receivables133M(340M)(287M)(194M)(174.6M)(165.9M)
Net Borrowings741M998M945M994M1.1B1.2B

Texas Instruments Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Texas Instruments or Semiconductors & Semiconductor Equipment sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Texas Instruments' price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Texas stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over NYSE Composite
-0.09
β
Beta against NYSE Composite1.29
σ
Overall volatility
1.44
Ir
Information ratio -0.04

Texas Instruments Volatility Alert

Texas Instruments Incorporated has relatively low volatility with skewness of 0.44 and kurtosis of -0.1. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Texas Instruments' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Texas Instruments' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.

Texas Instruments Implied Volatility

Texas Instruments' implied volatility exposes the market's sentiment of Texas Instruments Incorporated stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Texas Instruments' implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Texas Instruments stock will not fluctuate a lot when Texas Instruments' options are near their expiration.

Texas Instruments Fundamentals Vs Peers

Comparing Texas Instruments' fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Texas Instruments' direct or indirect competition across all of the common fundamentals between Texas Instruments and the related equities. This way, we can detect undervalued stocks with similar characteristics as Texas Instruments or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Texas Instruments' fundamental indicators could also be used in its relative valuation, which is a method of valuing Texas Instruments by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Texas Instruments to competition
FundamentalsTexas InstrumentsPeer Average
Return On Equity0.41-0.31
Return On Asset0.15-0.14
Profit Margin0.37 %(1.27) %
Operating Margin0.38 %(5.51) %
Current Valuation159.97 B16.62 B
Shares Outstanding910.06 M571.82 M
Shares Owned By Insiders0.23 %10.09 %
Shares Owned By Institutions89.10 %39.21 %
Number Of Shares Shorted17.87 M4.71 M
Price To Earning18.13 X28.72 X
Price To Book9.31 X9.51 X
Price To Sales8.98 X11.42 X
Revenue17.52 B9.43 B
Gross Profit13.77 B27.38 B
EBITDA8.49 B3.9 B
Net Income6.51 B570.98 M
Cash And Equivalents9.09 B2.7 B
Cash Per Share10.02 X5.01 X
Total Debt11.22 B5.32 B
Debt To Equity0.55 %48.70 %
Current Ratio4.92 X2.16 X
Book Value Per Share18.59 X1.93 K
Cash Flow From Operations6.42 B971.22 M
Short Ratio3.17 X4.00 X
Earnings Per Share7.07 X3.12 X
Price To Earnings To Growth3.33 X4.89 X
Target Price169.12
Number Of Employees34 K18.84 K
Beta1.03-0.15
Market Capitalization157.32 B19.03 B
Total Asset32.35 B29.47 B
Retained Earnings52.28 B9.33 B
Working Capital11.8 B1.48 B
Note: Payment of 684 shares by Yunus Mohammad of Texas Instruments subject to Rule 16b-3 [view details]

Texas Instruments Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Texas . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.

About Texas Instruments Buy or Sell Advice

When is the right time to buy or sell Texas Instruments Incorporated? Buying financial instruments such as Texas Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
 2021 2022 2023 2024 (projected)
Short and Long Term Debt Total7.7B8.7B11.2B11.8B
Total Assets24.7B27.2B32.3B34.0B

Use Investing Ideas to Build Portfolios

In addition to having Texas Instruments in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Trading
Trading Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Trading theme has 61 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Trading Theme or any other thematic opportunities.
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When determining whether Texas Instruments offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Texas Instruments' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Texas Instruments Incorporated Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Texas Instruments Incorporated Stock:
Check out Texas Instruments Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
You can also try the Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.

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When running Texas Instruments' price analysis, check to measure Texas Instruments' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Texas Instruments is operating at the current time. Most of Texas Instruments' value examination focuses on studying past and present price action to predict the probability of Texas Instruments' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Texas Instruments' price. Additionally, you may evaluate how the addition of Texas Instruments to your portfolios can decrease your overall portfolio volatility.
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Is Texas Instruments' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Texas Instruments. If investors know Texas will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Texas Instruments listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.30)
Dividend Share
5.02
Earnings Share
7.07
Revenue Per Share
19.294
Quarterly Revenue Growth
(0.13)
The market value of Texas Instruments is measured differently than its book value, which is the value of Texas that is recorded on the company's balance sheet. Investors also form their own opinion of Texas Instruments' value that differs from its market value or its book value, called intrinsic value, which is Texas Instruments' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Texas Instruments' market value can be influenced by many factors that don't directly affect Texas Instruments' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Texas Instruments' value and its price as these two are different measures arrived at by different means. Investors typically determine if Texas Instruments is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Texas Instruments' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.