According to Zacks, “TE Connectivity has a decent earnings surprise history, beating estimates thrice over the trailing four quarters, largely driven by strength of the SubCom businesses, along with other productivity improvements. However, sluggishness in industrial markets, oil & gas weakness and the derivative impact of lower oil prices hurt the company’s operations and are expected to remain formidable headwinds, going forward. Also, adverse currency fluctuations and high restructuring expenses have been straining the company’s results. Going forward, TE Connectivity believes that its industrial, data & devices, and communications businesses will continue to be impacted by the weakness in Chinese economy. The company also expects weakness in Communication segment to continue. Nevertheless, strong performance of the sensors & harsh environments business and a rebound in transportation business are expected to act as catalysts.”
A number of other equities research analysts have also recently issued reports on TEL. Deutsche Bank AG restated a hold rating and set a $65.00 price target on shares of TE Connectivity in a report on Wednesday, June 15th. Royal Bank Of Canada reiterated a buy rating and issued a $66.00 target price on shares of TE Connectivity in a research note on Friday, June 17th. Morgan Stanley reiterated a buy rating on shares of TE Connectivity in a research note on Tuesday, September 20th. Finally, RBC Capital Markets reiterated an outperform rating and issued a $65.00 target price (up previously from $63.00) on shares of TE Connectivity in a research note on Thursday, July 21st. One investment analyst has rated the stock with a sell rating, one has given a hold rating and three have assigned a buy rating to the company’s stock. The company has a consensus rating of Hold and an average price target of $64.33.
TE Connectivity (NYSE:TEL) opened at 64.31 on Monday. TE Connectivity has a one year low of $51.70 and a one year high of $67.99. The company has a market capitalization of $22.87 billion, a price-to-earnings ratio of 9.39 and a beta of 1.39. The company has a 50-day moving average price of $62.50 and a 200-day moving average price of $60.65.
TE Connectivity (NYSE:TEL) last released its quarterly earnings results on Wednesday, July 20th. The company reported $1.08 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $1.03 by $0.05. TE Connectivity had a net margin of 21.97% and a return on equity of 16.72%. The company earned $3.12 billion during the quarter, compared to analysts’ expectations of $3.13 billion. During the same period in the prior year, the company earned $0.90 earnings per share. The business’s quarterly revenue was up .1% compared to the same quarter last year. Equities research analysts anticipate that TE Connectivity will post $4.01 EPS for the current year.
The business also recently announced a quarterly dividend, which was paid on Friday, September 9th. Investors of record on Friday, August 26th were paid a $0.37 dividend. This represents a $1.48 annualized dividend and a dividend yield of 2.30%. The ex-dividend date of this dividend was Wednesday, August 24th. TE Connectivity’s payout ratio is presently 21.67%.
In other TE Connectivity news, CEO Thomas J. Lynch sold 123,635 shares of the firm’s stock in a transaction dated Tuesday, September 6th. The shares were sold at an average price of $62.78, for a total transaction of $7,761,805.30. Following the completion of the transaction, the chief executive officer now owns 507,776 shares in the company, valued at $31,878,177.28. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, COO Joseph B. Donahue sold 10,000 shares of the firm’s stock in a transaction dated Tuesday, August 30th. The stock was sold at an average price of $63.78, for a total transaction of $637,800.00. Following the transaction, the chief operating officer now owns 38,825 shares of the company’s stock, valued at approximately $2,476,258.50. The disclosure for this sale can be found here. 1.49% of the stock is currently owned by corporate insiders.
A number of hedge funds and other institutional investors have recently made changes to their positions in the company. JPMorgan Chase & Co. boosted its position in shares of TE Connectivity by 15.3% in the first quarter. JPMorgan Chase & Co. now owns 14,767,480 shares of the company’s stock worth $914,402,000 after buying an additional 1,959,504 shares in the last quarter. State Street Corp boosted its position in shares of TE Connectivity by 1.5% in the first quarter. State Street Corp now owns 13,705,375 shares of the company’s stock worth $848,635,000 after buying an additional 198,512 shares in the last quarter. Artisan Partners Limited Partnership boosted its position in shares of TE Connectivity by 1.6% in the second quarter. Artisan Partners Limited Partnership now owns 10,715,976 shares of the company’s stock worth $611,989,000 after buying an additional 165,600 shares in the last quarter. Boston Partners boosted its position in shares of TE Connectivity by 161.8% in the second quarter. Boston Partners now owns 8,963,462 shares of the company’s stock worth $511,903,000 after buying an additional 5,539,080 shares in the last quarter. Finally, First Pacific Advisors LLC boosted its position in shares of TE Connectivity by 5.4% in the second quarter. First Pacific Advisors LLC now owns 6,907,710 shares of the company’s stock worth $394,499,000 after buying an additional 353,300 shares in the last quarter. Hedge funds and other institutional investors own 91.55% of the company’s stock.
About TE Connectivity
TE Connectivity Ltd. (TE Connectivity) is a technology company. The Company designs and manufactures connectivity and sensors solutions. It operates its business through three segments: Transportation Solutions, which offers various products, including terminals and connector systems and components, relays, circuit protection devices, sensors, and application tooling, among others; Industrial Solutions, which include terminals and connector systems and components, heat shrink tubing, relays, wire and cable, and Communications Solutions, which include terminals and connector systems and components, circuit protection devices, antennas, relays and heat shrink tubing.
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