4. Texas Instruments Incorporated (NASDAQ:TXN)
Number of Hedge Fund Holders: 46
YTD Loss: 15.77%
On July 15, Goldman Sachs analyst Toshiya Hari slashed his price target on Texas Instruments Incorporated (NASDAQ:TXN) to $148 from $162 and reiterated a Sell rating on the shares. On July 5, DZ Bank analyst Ingo Wermann downgraded Texas Instruments Incorporated (NASDAQ:TXN) to Hold from Buy and reiterated his $150 price target on the shares. Texas Instruments Incorporated (NASDAQ:TXN) is at risk of tumbling from declining demand in the automotive and personal electronics markets, both of which are its key end markets.
Over the past 3 months, 21 Wall Street analysts have shared their ratings and price targets on Texas Instruments Incorporated (NASDAQ:TXN). The stock has received 8 Buy ratings, 10 Hold ratings, and 3 Sell ratings. The average price target for the stock is roughly $183, which implies a 13.77% upside from its closing price on July 15 which sits at $160.54. The stock has a high price target of $230 and on the low end is expected to reach $148.
In the second quarter of 2022, Heathbridge Capital Management reduced its stakes in Texas Instruments Incorporated by 3%, bringing them to $10.36 million. Heathbridge Capital Management is the most prominent shareholder in the company.
At the end of Q1 2022, 46 hedge funds were long Texas Instruments Incorporated (NASDAQ:TXN) with stakes worth $1.96 billion. This is compared to 53 positions in the previous quarter with stakes worth $2.91 billion. The hedge fund sentiment for the stock is negative.
Here is what Davis Funds, an investment management firm, had to say about Texas Instruments Incorporated (NASDAQ:TXN) in its “Davis Opportunity Fund” fourth-quarter 2021 investor letter:
“Within technology and communication services, we own a number of online businesses and semiconductor related companies, including Alphabet, Amazon, Intel, Applied Materials and Texas Instruments. Within the realm of high technology, we believe that leadership positions reflect enduring and widening competitive advantages over smaller competitors, with few exceptions. This is because online businesses, as well as semiconductor companies, benefit from economies of scale. An online search and advertising engine will, in general, be more profitable per unit of cost as it grows larger in terms of users and advertising dollars. It is a hub-and-spoke model, in other words, where it is generally not necessary to grow expenses at the same rate that revenues grow beyond a certain threshold. Therefore, returns on capital tend to be higher, the larger and more dominant the online search company is.”
