One Factor Moving Texas Instruments (TXN) Stock Higher

NEW YORK (TheStreet) -- Shares of Texas Instruments (TXN) are gaining 1.4% to $55.25 on Monday afternoon after the chipmaker announced the availability of its new C2000 Delfino F28377S microcontroller (MCU) LaunchPad development kit.

The new development kit is the first LaunchPad for the company's Delfino line of MCU. The LaunchPas offers 200 MHz of 32-point floating-point performance, newly integrated accelerators, and high-intensity analog and control peripherals for $29.99, the company said.

Texas Instruments said the new Delfino LaunchPad "dramatically reduces the barriers of entry for development of high-performance control systems in digital power, solar, motor control and industrial drives applications."

About 4.1 million shares of Texas Instruments were traded by 12:55 p.m. Monday, compared to the company's average trading volume of about 5.5 million shares a day.

TheStreet Ratings team rates TEXAS INSTRUMENTS INC as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:

"We rate TEXAS INSTRUMENTS INC (TXN) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, reasonable valuation levels and expanding profit margins. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • TXN's revenue growth has slightly outpaced the industry average of 0.7%. Since the same quarter one year prior, revenues slightly increased by 5.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The current debt-to-equity ratio, 0.45, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, TXN has a quick ratio of 2.06, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Semiconductors & Semiconductor Equipment industry and the overall market, TEXAS INSTRUMENTS INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • The gross profit margin for TEXAS INSTRUMENTS INC is rather high; currently it is at 64.51%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 20.82% is above that of the industry average.
  • You can view the full analysis from the report here: TXN Ratings Report

More from Markets

Week Ahead: Trade Fears and Stress Tests Signal More Volatility To Come

Week Ahead: Trade Fears and Stress Tests Signal More Volatility To Come

Trump Takes Aim at Auto Imports; Markets End Mixed -- ICYMI

Trump Takes Aim at Auto Imports; Markets End Mixed -- ICYMI

Video: What Oprah's Content Partnership With Apple Means for the Rest of Tech

Video: What Oprah's Content Partnership With Apple Means for the Rest of Tech

REPLAY: Jim Cramer on the Markets, Oil, Starbucks, Tesla, Okta and Red Hat

REPLAY: Jim Cramer on the Markets, Oil, Starbucks, Tesla, Okta and Red Hat

Flashback Friday: The Market Movers

Flashback Friday: The Market Movers