RBC Capital Downgrades Texas Instruments As Order Trends Slow (TXN)

RBC Capital Downgrades Texas Instruments As Order Trends Slow (TXN)

RSS

RBC Capital downgraded chipmaker Texas Instruments (TXN) from Outperform to Sector Perform on Tuesday as part of a broader downgrade of its semiconductor sector outlook. RBC lowered its price target for the company from $32 to $28, which is below the recent closing price for the stock.

“TXN’s commentary during its mid-quarter update on weakening end-market health, slowing order trends, and lean customer inventory environment is concerning given TXN broad scale, ~4.5% of the total semiconductor market and ~17% of the analog market,” said analyst Doug Freedman. “We acknowledge that this cycle is an anomaly as broader demand softening is atypical through this time frame, and especially to TXN given its consumer exposure is often a catalyst to 2H revenues.”

TXN shares closed at $29.10 on Monday and were down more than 1% in pre-market trading on Tuesday.

The Bottom Line
Shares of Texas Instruments (TXN) have a 2.34% dividend yield, based on last night’s closing stock price of $29.10. The stock has technical support in the $26-$27 price area. If the shares can firm up, we see overhead resistance around the $30-$32 price levels.

Texas Instruments (TXN) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.2 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

Free Updates

Join over 100,000 investors who get the latest news from Dividend.com.

Best Dividend Stocks

Looking for stocks that are poised for growth and pay solid dividends? Visit our list of the:

Best Dividend Stocks

Partner Center

Best CD Rates

Sitting on some extra cash and looking for the most current and profitable CD Rates?

Get The Best CD Rates

14 Day Free Trial

Earn more from your dividend portfolio within the next 14 days.

Sign Up Today