TXN Nabs More Bull Notes After Bang-Up Earnings

The security is pulling back with the broader market today, however

Deputy Editor
Jan 27, 2021 at 9:14 AM
facebook twitter linkedin

While the broader market is keeping a lid on the shares of Texas Instruments Incorporated (NASDAQ:TXN), which was last seen down 2.7% at $166.90, the firm's fourth-quarter earnings and revenue beat is bringing in plenty of bull notes. The semiconductor name also posted a current-quarter forecast that beat Wall Street's estimates, citing a third-consecutive quarter of sales growth after two weak years, as well as a growing demand from the personal electronics market. 

No less than nine analysts have lifted their price targets so far, with the highest coming from Jefferies, which raised its estimate to $206 from $165. When we last checked in on Texas Instruments, about one week ahead of its earnings event, analysts were already starting to chime in. This barrage of bull notes might not be over just yet, of the 20 in coverage, 10 still call TXN a "hold," while three say "sell." What's more, coming into today, the 12-month consensus price target of $172.81 was just a slim 0.8% premium to last night's close. 

The options pits were more bearish than usual ahead of the event, too. While calls have still been outnumbering puts on an overall basis, per TNX's 50-day put/call volume ratio of 0.92 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), this ratio stands in the 70th percentile of its annual range, suggesting puts are being picked up at a relatively quicker-than-usual clip. 

And while TXN is pulling back today, there's still plenty of underlying support for the equity by way of its 30- and 60-day moving averages, both of which caught pullbacks as the stock chugged its way up the charts, adding over 50% in the past nine months. In fact, the security just hit an all-time high of $175.47 late last week, though it looks like TXN will need to overcome pressure near the $174 area if it wants to topple last week's record. 

Begin the New Year With Schaeffer's 7 FREE 2022 Stock Picks!



Special Offers from Schaeffer's Trading Partners