Texas Instruments, Inc. TXN Stock Analysis

Texas Instruments, Inc. stock trades under the ticker TXN & has shown recent bullish behavior that traders & investors may want to look closer into for when market volatility has subsided.

TXN stock closed at $165.26/share on 5/15/2023.

Texas Instruments, Inc. TXN Stock’s Technical Performance Broken Down

Texas Instruments, Inc. TXN Stock's Technical Performance Over The Past Year
Texas Instruments, Inc. TXN Stock’s Technical Performance Over The Past Year

TXN Stock Price: $165.26

10 Day Moving Average: $163.02

50 Day Moving Average: $172.68

200 Day Moving Average: $168.85

RSI: 44.53

MACD: -3.25

Yesterday, TXN stock completed a bullish MACD crossover, gaining +2.09% on the day’s session.

Their RSI is on the oversold end of neutral at 44.53, with recent trading volumes being below average compared to the year prior, signaling uncertainty among investors.

Traders & investors should begin to watch how TXN stock behaves around its support levels in the coming weeks ahead, in order to begin planning where to enter a position once the market becomes less volatile.

TXN stock has support at the $163.02 (10 day moving average), $161.16, $159.47 & $158.47/share price levels, with resistance at the $165.43, $166.43, $166.52 & $167.13/share price levels.

Texas Instruments, Inc. TXN Stock As A Long-Term Investment

Investors focused on longer time horizons will like TXN stock’s 18.61 P/E (ttm), but may find their 9.87 P/B (mrq) to be a bit too rich.

They recently reported -10.7% Quarterly Revenue Growth Y-o-Y, with -22.4% Quarterly Earnings Growth Y-o-Y, which investors may want to review further before entering a position.

Their balance sheet at first glance is much more appealing than many of their peers, with $9.54B of Total Cash (mrq) & $10.13B of Total Debt (mrq).

TXN stock pays a 2.95% dividend, which appears to be sustainable in the long-run, as their payout ratio is 53.7%.

87.6% of TXN stock’s outstanding share float is owned by institutional investors.

Texas Instruments, Inc. TXN Stock As A Short-Term Trade Using Options

Traders with shorter time horizons can trade options to profit from price movements in TXN stock’s price, while protecting their portfolios from broader market volatility.

I am looking at the contracts with the 6/16 expiration date.

The $155, $165 & $150 call options are all in-the-money, listed from highest to lowest level of open interest.

The $170, $175 & $180 puts are also all in-the-money, with the former being more liquid than the latter strike prices.

Tying It All Together

TXN stock has many interesting characteristics that traders & investors will find appealing.

Investors will like their dividend yield, as well as their balance sheet when compared to their peers.

Traders will like their recent technical performance, as well as how liquid their options are.

Overall, it is worth taking a closer look into how TXN stock fits into your portfolio strategy.