Texas Instruments, Inc. stock trades under the ticker TXN & has shown recent bullishness that traders & investors should take a closer look at.
TXN stock closed at $193.47/share on 11/18/2021 & looks set to continue it’s most recent bullish run.
Texas Instruments, Inc. TXN Stock’s Technicals Broken Down
TXN Stock Price: $193.47
10 Day Moving Average: $190.30
50 Day Moving Average: $192.43
200 Day Moving Average: $185.18
RSI: 55.01
MACD: -0.54
TXN stock completed a bullish MACD crossover yesterday & has been trading at about average volume for the past year this month.
Their share price also broke out above their 50 Day Moving Average, with the 10 Day MA ~1% behind it.
This should provide additional bullish momentum in the near-term, especially with a neutral RSI.
Texas Instruments, Inc. TXN Stock As A Long-Term Investment
Investors will find TXN’s P/E(ttm) appealing at 24.34, although their P/B is a bit rich at 14.4.
With a Beta of 0.94, they move slightly less aggressively than the broader market indexes.
TXN stock saw Quarterly Revenue Growth Y-o-Y of 21.6%, and their balance sheet also looks appealing.
Texas Instruments Inc. stock’s Total Cash (mrq) is $9.78B, with Total Debt (mrq) of only $7.74B.
They offer a 2.15% annual dividend yield, which looks safe with a payout ratio of 52%.
These reasons contribute to why they have 85.6% of their share float owned by institutional investors.
Texas Instruments, Inc. TXN Stock As A Short-Term Trade Using Options
Traders can take advantage of TXN’s current momentum by trading options.
I am looking at the 12/17 expiration dated contracts.
The $190 & $195 strike price call options look appealing, with the latter having better liquidity, despite being <1% out of the money.
For puts, the $195 & $200 look appealing, although lacking liquidity with very low levels of open interest.
This signals that the options market thinks that there is more bullish energy to carry TXN’s share price higher in that time period.
Tying It All Together
Traders & investors will both find TXN stock appealing.
Their strong balance sheet, safe dividend yield & valuation will all appeal to long-term oriented investors.
Traders will like their current momentum & the liquidity of their options contracts.
Overall, it is worth taking a closer look at Texas Instruments Inc.’s stock.
*** I DO NOT OWN SHARES OF TXN STOCK ***