Zacks Investment Research upgraded shares of TE Connectivity Ltd (NYSE:TEL) from a hold rating to a buy rating in a report published on Friday. They currently have $86.00 price objective on the electronics maker’s stock.
According to Zacks, “TE Connectivity reported second-quarter fiscal 2017 adjusted earnings of $1.19 per share, which beat the Zacks Consensus Estimate by 10.2% and was up 32% year over year. The impressive earnings were driven by continued progress on strategic priorities, solid execution and impressive top-line growth. The company expects transportation business to grow in mid-single digits organically, fuelled by growth in global auto production and impressive heavy truck business in key end markets. Going forward, other two segments, namely, Communications and Industrial are expected to stoke growth. Additionally, TE Connectivity’s solid financial health adds to its strength. However, the stock has also underperformed the Zacks categorized Electronics-Miscellaneous Components industry average over the past six months. Sluggish industrial markets and derivative impact of lower oil prices are posing as major headwinds, thwarting growth.”
A number of other research analysts also recently issued reports on the company. Stifel Nicolaus increased their price objective on TE Connectivity from $75.00 to $81.00 and gave the stock a buy rating in a report on Thursday, January 26th. Royal Bank of Canada reiterated an outperform rating and set a $82.00 price objective on shares of TE Connectivity in a report on Tuesday, March 28th. Cowen and Company initiated coverage on TE Connectivity in a report on Tuesday, March 21st. They set an outperform rating and a $90.00 price objective for the company. Morgan Stanley increased their price objective on TE Connectivity from $85.00 to $87.00 and gave the stock an overweight rating in a report on Friday, April 28th. Finally, Deutsche Bank AG increased their price objective on TE Connectivity from $75.00 to $82.00 and gave the stock a hold rating in a report on Friday, April 28th. One analyst has rated the stock with a sell rating, one has assigned a hold rating and six have given a buy rating to the stock. TE Connectivity presently has a consensus rating of Buy and an average price target of $82.29.
Shares of TE Connectivity (NYSE:TEL) opened at 73.95 on Friday. TE Connectivity has a one year low of $54.54 and a one year high of $79.69. The stock’s 50 day moving average price is $74.71 and its 200 day moving average price is $72.06. The firm has a market capitalization of $26.25 billion, a price-to-earnings ratio of 12.70 and a beta of 1.16.
TE Connectivity (NYSE:TEL) last posted its quarterly earnings data on Wednesday, April 26th. The electronics maker reported $1.19 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $1.08 by $0.11. The business had revenue of $3.23 billion during the quarter, compared to the consensus estimate of $3.10 billion. TE Connectivity had a return on equity of 19.26% and a net margin of 16.56%. TE Connectivity’s quarterly revenue was up 9.3% on a year-over-year basis. During the same period last year, the company earned $0.90 earnings per share. Analysts expect that TE Connectivity will post $4.64 EPS for the current fiscal year.
The business also recently declared a quarterly dividend, which will be paid on Friday, June 9th. Investors of record on Friday, May 26th will be given a dividend of $0.40 per share. The ex-dividend date of this dividend is Wednesday, May 24th. This is a boost from TE Connectivity’s previous quarterly dividend of $0.37. This represents a $1.60 annualized dividend and a yield of 2.16%. TE Connectivity’s dividend payout ratio is 25.92%.
In related news, insider Thomas J. Lynch sold 131,875 shares of the stock in a transaction that occurred on Monday, April 3rd. The stock was sold at an average price of $73.60, for a total transaction of $9,706,000.00. Following the completion of the transaction, the insider now directly owns 450,662 shares of the company’s stock, valued at $33,168,723.20. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, COO Joseph B. Donahue sold 6,832 shares of the stock in a transaction that occurred on Wednesday, February 22nd. The shares were sold at an average price of $74.87, for a total value of $511,511.84. Following the transaction, the chief operating officer now directly owns 47,509 shares of the company’s stock, valued at $3,556,998.83. The disclosure for this sale can be found here. Insiders have sold 437,209 shares of company stock valued at $33,006,586 over the last three months. Insiders own 1.49% of the company’s stock.
A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Daiwa SB Investments Ltd. bought a new position in shares of TE Connectivity during the first quarter valued at approximately $101,000. Guardian Life Insurance Co. of America boosted its position in shares of TE Connectivity by 0.7% in the first quarter. Guardian Life Insurance Co. of America now owns 1,370 shares of the electronics maker’s stock valued at $102,000 after buying an additional 9 shares during the period. Portfolio Solutions LLC bought a new position in shares of TE Connectivity during the first quarter valued at approximately $104,000. Intellectus Partners LLC bought a new position in shares of TE Connectivity during the fourth quarter valued at approximately $107,000. Finally, Webster Bank N. A. boosted its position in shares of TE Connectivity by 675.0% in the first quarter. Webster Bank N. A. now owns 1,550 shares of the electronics maker’s stock valued at $116,000 after buying an additional 1,350 shares during the period. 91.08% 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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