Shares of Texas Instruments Incorporated (NASDAQ:TXN) recorded -2.29% loss during trading session on June 12th, 2019. The script traded as low as $109.98 and last traded at $110.34. 3.99 million shares changed exchanged hands during trading, an increase of 19.72% from the 30-day average session volume of 4.97M shares. The firm had previously closed at $112.93. The company has $939.00M outstanding shares, a price-to-earnings ratio of 20.03, price-to-earnings-growth ratio of 6.65and a beta of 1.24. The company has a RSI of 51.41, ATR of 2.76 and a volatility of 1.96% this week. TXN has a 52 week low price of $87.70 and a 52 week high price of $119.32.
Investors have identified the tech 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 103.61B, 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 3.72 billion on their books with 477 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 0 total, with 1.74 billion as their total liabilities. This figure have given the company a good sense of viability under numerous contexts.
TXN were able to record 856 million as free cash flow during the recently reported quarter of the year, this saw their quarterly net cash flow reduce by 1.28 billion. In cash movements, the company had a total of 1.11 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 third quarter of the year, Texas Instruments Incorporated recorded a total of 3.59 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with -0.05% coming in sequential stages and their sales for the third quarter reducing by -0.03%.
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 1.33 billion trying to sell their products during the last quarter, with the result yielding a gross income of 2.26 billion. This allows shareholders to hold on to 939.00M with the revenue now reading 1300 cents per share. This is a figure that is close to analyst’s prediction for their fourth quarter (1.39 cents a share).
Is the stock of TXN attractive?
Having a look at the company’s valuation, the company is expected to record 5.70 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.
In related news, Sr. Vice President & CFO Lizardi Rafael R sold 27,675 shares of the company’s stock in a transaction that recorded on May 2nd, 2019. The sale was performed at an average price of 117.87, for a total value of 3,261,928. As the sale deal closes, the Sr. Vice President Lizardi Rafael R now sold 76,818 shares of the company’s stock, valued at 9,016,754. Also, Chairman, President & CEO TEMPLETON RICHARD K sold 155,000 shares of the company’s stock in a deal that was recorded on May 1st, 2019. The shares were sold at an average price of 117.60 per share, with a total market value of 770,287. Following this completion of acquisition, the Chairman, President & CEO now holds 160,000 shares of the company’s stock, valued at 18,843,836. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.20%.
6 out of 32 analysts covering the stock have rated it a Buy, while 20 have maintained a Hold recommendation on Texas Instruments Incorporated stock. 2 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 $116.52.