Zacks Investment Research downgraded shares of TE Connectivity (NYSE:TEL) from a buy rating to a hold rating in a report issued on Friday morning.
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. It expects transportation business to experience high-single-digit organic growth, fueled by rise in global auto production and impressive heavy truck business in key end markets. Also, its Communications and Industrial segments are witnessing strong rebound, thus stoking growth. However, sluggish industrial markets and derivative impact of lower oil prices are posing as major headwinds, thwarting growth. Also, adverse currency fluctuations and high restructuring expenses might hurt the company’s performance. The stock has also underperformed the industry average, year to date. The company is currently experiencing inefficiencies in its supply chain.”
Other analysts also recently issued reports about the stock. Royal Bank of Canada reduced their price target on shares of TE Connectivity from $100.00 to $95.00 and set an outperform rating for the company in a report on Thursday, November 2nd. Morgan Stanley increased their price target on shares of TE Connectivity from $89.00 to $97.00 and gave the company an overweight rating in a report on Thursday, November 2nd. Citigroup increased their price target on shares of TE Connectivity from $92.00 to $106.00 and gave the company a buy rating in a report on Thursday, November 2nd. Robert W. Baird began coverage on shares of TE Connectivity in a report on Friday, November 3rd. They issued an outperform rating and a $105.00 price target for the company. Finally, Stifel Nicolaus increased their price target on shares of TE Connectivity from $98.00 to $105.00 and gave the company a buy rating in a report on Thursday, December 14th. Two equities research analysts have rated the stock with a sell rating, three have given a hold rating and thirteen have given a buy rating to the company. The stock currently has a consensus rating of Buy and an average price target of $151.93.
TE Connectivity (NYSE:TEL) last issued its quarterly earnings results on Wednesday, November 1st. The electronics maker reported $1.25 earnings per share for the quarter, beating analysts’ consensus estimates of $1.16 by $0.09. TE Connectivity had a net margin of 12.84% and a return on equity of 18.97%. The firm had revenue of $3.46 billion during the quarter, compared to the consensus estimate of $3.28 billion. During the same period in the prior year, the firm earned $1.22 EPS. The business’s revenue was up 3.7% on a year-over-year basis. equities research analysts predict that TE Connectivity will post 5.27 earnings per share for the current year.
The firm also recently disclosed a quarterly dividend, which was paid on Friday, December 8th. Stockholders of record on Friday, November 24th were paid a $0.40 dividend. This represents a $1.60 dividend on an annualized basis and a dividend yield of 1.68%. The ex-dividend date of this dividend was Wednesday, November 22nd. TE Connectivity’s dividend payout ratio is 34.19%.
TE Connectivity announced that its Board of Directors has initiated a share repurchase program on Friday, December 8th that permits the company to buyback $1.50 billion in shares. This buyback authorization permits the electronics maker to buy shares of its stock through open market purchases. Stock buyback programs are generally a sign that the company’s leadership believes its stock is undervalued.
In related news, insider Thomas J. Lynch sold 130,617 shares of the stock in a transaction dated Wednesday, November 1st. The shares were sold at an average price of $91.29, for a total transaction of $11,924,025.93. Following the completion of the sale, the insider now owns 429,500 shares in the company, valued at approximately $39,209,055. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Chairman Thomas J. Lynch sold 60,000 shares of the stock in a transaction dated Wednesday, November 15th. The stock was sold at an average price of $93.05, for a total transaction of $5,583,000.00. Following the sale, the chairman now owns 167,336 shares of the company’s stock, valued at approximately $15,570,614.80. The disclosure for this sale can be found here. Insiders have sold a total of 629,189 shares of company stock valued at $58,653,083 in the last quarter. 1.30% of the stock is currently owned by corporate insiders.
Several institutional investors have recently made changes to their positions in the stock. Atlantic Trust Group LLC increased its position in shares of TE Connectivity by 0.4% during the 3rd quarter. Atlantic Trust Group LLC now owns 178,475 shares of the electronics maker’s stock worth $14,824,000 after purchasing an additional 690 shares in the last quarter. Parametric Portfolio Associates LLC increased its position in shares of TE Connectivity by 12.2% during the 3rd quarter. Parametric Portfolio Associates LLC now owns 542,983 shares of the electronics maker’s stock worth $45,100,000 after purchasing an additional 59,093 shares in the last quarter. Sage Capital Advisors llc increased its position in shares of TE Connectivity by 22.0% during the 3rd quarter. Sage Capital Advisors llc now owns 15,649 shares of the electronics maker’s stock worth $1,300,000 after purchasing an additional 2,822 shares in the last quarter. Shelton Capital Management increased its position in shares of TE Connectivity by 1,134.1% during the 3rd quarter. Shelton Capital Management now owns 39,936 shares of the electronics maker’s stock worth $3,317,000 after purchasing an additional 36,700 shares in the last quarter. Finally, Gofen & Glossberg LLC IL acquired a new stake in shares of TE Connectivity during the 3rd quarter worth about $376,000. Institutional investors and hedge funds own 90.02% of the company’s stock.
About TE Connectivity
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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