Is it time to Buy before this week’s earning report Texas Instruments (NASDAQ:TXN)

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Earnings results for Texas Instruments (NASDAQ:TXN)

Texas Instruments Incorporated is expected* to report earnings on 10/20/2020 after market close. The report will be for the fiscal Quarter ending Sep 2020. According to Zacks Investment Research, based on 11 analysts’ forecasts, the consensus EPS forecast for the quarter is $1.26. The reported EPS for the same quarter last year was $1.49.

Texas Instruments last posted its earnings data on July 21st, 2020. The semiconductor company reported $1.48 earnings per share for the quarter, topping analysts’ consensus estimates of $0.88 by $0.60. The company had revenue of $3.24 billion for the quarter, compared to analyst estimates of $2.96 billion. Texas Instruments has generated $5.24 earnings per share over the last year and currently has a price-to-earnings ratio of 28.3. Texas Instruments has confirmed that its next quarterly earnings report will be published on Tuesday, October 20th, 2020.

Analyst Opinion on Texas Instruments (NASDAQ:TXN)

26 Wall Street analysts have issued ratings and price targets for Texas Instruments in the last 12 months. Their average twelve-month price target is $141.04, predicting that the stock has a possible downside of 6.45%. The high price target for TXN is $175.00 and the low price target for TXN is $88.00. There are currently 4 sell ratings, 11 hold ratings and 11 buy ratings for the stock, resulting in a consensus rating of “Hold.”

Texas Instruments has received a consensus rating of Hold. The company’s average rating score is 2.27, and is based on 11 buy ratings, 11 hold ratings, and 4 sell ratings. According to analysts’ consensus price target of $141.04, Texas Instruments has a forecasted downside of 6.4% from its current price of $150.76. Texas Instruments has been the subject of 16 research reports in the past 90 days, demonstrating strong analyst interest in this stock.

Dividend Strength: Texas Instruments (NASDAQ:TXN)

Texas Instruments pays a meaningful dividend of 2.35%, higher than the bottom 25% of all stocks that pay dividends. Texas Instruments has been increasing its dividend for 16 years. The dividend payout ratio of Texas Instruments is 68.70%. This payout ratio is at a healthy, sustainable level, below 75%. Based on earnings estimates, Texas Instruments will have a dividend payout ratio of 67.54% next year. This indicates that Texas Instruments will be able to sustain or increase its dividend.

Insiders buying/selling: Texas Instruments (NASDAQ:TXN)

In the past three months, Texas Instruments insiders have sold more of their company’s stock than they have bought. Specifically, they have bought $0.00 in company stock and sold $31,419,345.00 in company stock. Only 0.73% of the stock of Texas Instruments is held by insiders. 82.91% of the stock of Texas Instruments is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

Earnings and Valuation of Texas Instruments (NASDAQ:TXN

Earnings for Texas Instruments are expected to grow by 5.54% in the coming year, from $5.05 to $5.33 per share. The P/E ratio of Texas Instruments is 28.29, which means that it is trading at a more expensive P/E ratio than the market average P/E ratio of about 19.66. The P/E ratio of Texas Instruments is 28.29, which means that it is trading at a less expensive P/E ratio than the Computer and Technology sector average P/E ratio of about 65.98. Texas Instruments has a PEG Ratio of 2.89. PEG Ratios above 1 indicate that a company could be overvalued. Texas Instruments has a P/B Ratio of 15.82. P/B Ratios above 3 indicate that a company could be overvalued with respect to its assets and liabilities.

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