Did This Semiconductor Stock Just Find its Bottom?

TXN is down 11% year-to-date

Feb 25, 2022 at 12:19 PM
facebook X logo linkedin

The shares of Texas Instruments Incorporated (NASDAQ:TXN) have had a hard time staging a rebound since a bear note from Raymond James early last week put the equity at an annual low of $161.04. Yesterday's broad-market dip put TXN back within a few cents of this low at one point during the session, though the stock pulled in a win by end of day. Texas Instruments stock was last seen up 0.5% at $170.48 as it tests a recent ceiling at the $170 level, though it's still down 9.7% this year. 

txn chart feb 25

Despite this tepid price action, short sellers have been hitting the exits in droves. Short interest fell 21.9% in the last reporting period and now makes up a slim 1.6% of the stock's available float, or a little under three days' worth of pent-up buying power at TXN's average pace of trading. 

Analysts have yet to come around on the stock. Of the 17 analysts in coverage, just five say "strong buy," compared to 12 "hold" or worse ratings. 

Moreover, Texas Instruments looks to be an incredibly safe option for dividend investors. TXN provides a strong dividend yield of 2.78% with forward dividend of $4.60, as well as decently well-rounded fundamentals.

TXN currently holds a manageable balance sheet with $9.74 billion in cash and $8.21 billion in total debt. Texas Instruments has grown its annual revenues and net income 27% and 38%, respectively, since fiscal 2020. TXN is also expected to increase revenues by 3.9% and earnings by 3.1% for fiscal 2022, too. In addition, Texas Instruments stock has a forward price-earnings ratio 18.15, which is an intriguing valuation for a semiconductor company valued at $153.99 billion. However, TXN also trades at a price-sales ratio of 8.51, making its valuation less attractive but still offering a great long-term opportunity.


Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI