Texas Instruments Inc (NASDAQ:TXN) stock is 4.7% lower to trade at $172.31 at last glance, brushing off better-than-expected revenue for the third quarter. In addition to a quarterly profit miss, the company also issued a dismal fourth-quarter outlook.
At least 11 analysts chimed in with price-target cuts, including Mizuho to $145 from $150. Analysts lean pessimistic on TXN, with 21 of the 35 in coverage sporting a tepid "hold" or worse rating. The 12-month consensus target price of $187.04 is still a 9.8% premium to current levels, though, indicating the security looks ripe for additional bear notes.
Should today's losses hold, Texas Instruments stock will snap a five-day win streak with its worst single-day percentage drop since July. The shares already carry an 11.3% year-over-year deficit, and earlier fell to their lowest level since May amid pressure from the 20-day moving average.
An unwinding of optimism in the options pits could pressure TXN even lower. Over at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the security's 10-day call/put volume ratio of 1.62 ranks higher than 95% of annual readings.
Drilling down to today's options activity, 40,000 calls and 39,000 puts have traded hands already -- 9 times the volume typically seen at this point. The most active contract is the November 180 call, where positions are being opened.
TXN tends to outperform these volatility expectations, too. This is evidenced by its Schaeffer's Volatility Scorecard (SVS) of 94 out of 100.
