Zacks Investment Research upgraded shares of TE Connectivity (NYSE:TEL) from a hold rating to a buy rating in a research note released on Friday. The brokerage currently has $113.00 price target on the electronics maker’s stock.
According to Zacks, “TE Connectivity has a striking earnings surprise history over the four trailing quarters, beating estimates all through. Strong progress on strategic priorities, solid execution and impressive top-line growth are proving conducive to the company’s profitability. The company expects its transportation business to experience significant organic growth, fueled by rise in global auto production. In recent times, Transportation and Industrial Solutions segments of the company are contributing significantly to the operating margin expansion, consequently adding to the company’s strength. Further, the stock has outperformed the industry average over the past six months. However, TE Connectivity is experiencing inefficiencies in its supply chain as it is struggling to meet the demands of its customers. Adverse currency fluctuations and high restructuring expenses might also hurt the company’s performance.”
TEL has been the subject of a number of other reports. Morgan Stanley upped their price target on TE Connectivity from $102.00 to $111.00 and gave the company an overweight rating in a research note on Thursday, January 25th. ValuEngine raised TE Connectivity from a hold rating to a buy rating in a research note on Sunday, December 31st. Wells Fargo increased their target price on TE Connectivity from $112.00 to $120.00 and gave the stock an outperform rating in a research note on Thursday, January 25th. Royal Bank of Canada reissued a buy rating and set a $116.00 target price on shares of TE Connectivity in a research note on Wednesday, January 24th. Finally, Cross Research raised TE Connectivity from a hold rating to a buy rating in a research note on Friday, December 8th. One investment analyst has rated the stock with a sell rating, two have issued a hold rating and twelve have given a buy rating to the stock. The company currently has an average rating of Buy and a consensus price target of $135.67.
TE Connectivity (NYSE:TEL) last announced its quarterly earnings results on Wednesday, January 24th. The electronics maker reported $1.40 EPS for the quarter, beating analysts’ consensus estimates of $1.25 by $0.15. The company had revenue of $3.48 billion during the quarter, compared to analysts’ expectations of $3.39 billion. TE Connectivity had a return on equity of 19.49% and a net margin of 9.12%. TE Connectivity’s revenue was up 13.6% on a year-over-year basis. During the same period in the prior year, the business posted $1.15 EPS. sell-side analysts predict that TE Connectivity will post 5.49 earnings per share for the current year.
TE Connectivity announced that its board has initiated a share repurchase program on Friday, December 8th that allows the company to buyback $1.50 billion in shares. This buyback authorization allows the electronics maker to repurchase shares of its stock through open market purchases. Shares buyback programs are often an indication that the company’s board believes its shares are undervalued.
The firm also recently announced a quarterly dividend, which was paid on Friday, March 9th. Investors of record on Friday, February 23rd were paid a dividend of $0.40 per share. The ex-dividend date of this dividend was Thursday, February 22nd. This represents a $1.60 dividend on an annualized basis and a yield of 1.62%. TE Connectivity’s payout ratio is 46.24%.
In other TE Connectivity news, SVP Robert J. Ott sold 10,700 shares of the company’s stock in a transaction that occurred on Wednesday, February 28th. The stock was sold at an average price of $105.14, for a total transaction of $1,124,998.00. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Thomas J. Lynch sold 76,183 shares of the company’s stock in a transaction that occurred on Thursday, March 1st. The stock was sold at an average price of $101.48, for a total value of $7,731,050.84. Following the transaction, the insider now directly owns 254,715 shares of the company’s stock, valued at approximately $25,848,478.20. The disclosure for this sale can be found here. Over the last three months, insiders have sold 428,934 shares of company stock valued at $43,693,283. 0.70% of the stock is owned by company insiders.
A number of large investors have recently added to or reduced their stakes in TEL. Janus Henderson Group PLC boosted its position in TE Connectivity by 17.7% during the 3rd quarter. Janus Henderson Group PLC now owns 8,247,518 shares of the electronics maker’s stock worth $685,033,000 after acquiring an additional 1,239,920 shares during the last quarter. TIAA CREF Investment Management LLC boosted its position in TE Connectivity by 279.9% during the 4th quarter. TIAA CREF Investment Management LLC now owns 1,647,497 shares of the electronics maker’s stock worth $156,578,000 after acquiring an additional 1,213,860 shares during the last quarter. BlackRock Inc. boosted its position in TE Connectivity by 4.2% during the 4th quarter. BlackRock Inc. now owns 17,425,074 shares of the electronics maker’s stock worth $1,656,081,000 after acquiring an additional 694,901 shares during the last quarter. Asset Management One Co. Ltd. boosted its position in TE Connectivity by 1,777.2% during the 3rd quarter. Asset Management One Co. Ltd. now owns 545,390 shares of the electronics maker’s stock worth $45,300,000 after acquiring an additional 516,337 shares during the last quarter. Finally, Allianz Asset Management GmbH boosted its position in TE Connectivity by 56.0% during the 3rd quarter. Allianz Asset Management GmbH now owns 1,181,469 shares of the electronics maker’s stock worth $98,132,000 after acquiring an additional 424,335 shares during the last quarter. 91.76% of the stock is owned by hedge funds and other institutional investors.
TE Connectivity Company Profile
TE Connectivity Ltd. is a technology company. The Company designs and manufactures connectivity and sensors solutions. It operates through three segments: Transportation Solutions, Industrial Solutions and Communications Solutions. The Transportation Solutions segment offers connectivity and sensor technologies.
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