Zacks Investment Research cut shares of TE Connectivity (NYSE:TEL) from a buy rating to a hold rating in a report published on Friday.
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 equities research analysts also recently issued research reports about the stock. Royal Bank of Canada cut their target price on shares of TE Connectivity from $100.00 to $95.00 and set an outperform rating for the company in a research report on Thursday, November 2nd. Morgan Stanley lifted their target price on shares of TE Connectivity from $89.00 to $97.00 and gave the stock an overweight rating in a research report on Thursday, November 2nd. Citigroup lifted their target price on shares of TE Connectivity from $92.00 to $106.00 and gave the stock a buy rating in a research report on Thursday, November 2nd. Robert W. Baird assumed coverage on shares of TE Connectivity in a research report on Friday, November 3rd. They issued an outperform rating and a $105.00 target price for the company. Finally, Stifel Nicolaus lifted their target price on shares of TE Connectivity from $98.00 to $105.00 and gave the stock a buy rating in a research report on Thursday, December 14th. Two 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’s stock. The stock has an average rating of Buy and a consensus target price of $151.93.
TE Connectivity (NYSE:TEL) last posted its earnings results on Wednesday, November 1st. The electronics maker reported $1.25 EPS for the quarter, topping 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 business had revenue of $3.46 billion during the quarter, compared to the consensus estimate of $3.28 billion. During the same quarter in the previous year, the firm posted $1.22 EPS. The firm’s revenue was up 3.7% on a year-over-year basis. equities analysts expect that TE Connectivity will post 5.27 earnings per share for the current year.
The firm also recently declared a quarterly dividend, which was paid on Friday, December 8th. Stockholders of record on Friday, November 24th were paid a dividend of $0.40 per share. This represents a $1.60 annualized dividend 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 presently 33.97%.
TE Connectivity declared that its Board of Directors has authorized a stock buyback program on Friday, December 8th that allows the company to buyback $1.50 billion in outstanding shares. This buyback authorization allows the electronics maker to reacquire shares of its stock through open market purchases. Stock buyback programs are often a sign that the company’s board of directors believes its stock is undervalued.
In other news, COO Joseph B. Donahue sold 1,238 shares of TE Connectivity stock in a transaction on Wednesday, November 15th. The shares were sold at an average price of $93.23, for a total transaction of $115,418.74. Following the transaction, the chief operating officer now owns 52,134 shares in the company, valued at approximately $4,860,452.82. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Thomas J. Lynch sold 130,617 shares of TE Connectivity stock in a transaction on Wednesday, November 1st. The stock was sold at an average price of $91.29, for a total transaction of $11,924,025.93. Following the transaction, the insider now owns 429,500 shares in the company, valued at approximately $39,209,055. The disclosure for this sale can be found here. Insiders have sold a total of 629,189 shares of company stock worth $58,653,083 in the last quarter. Corporate insiders own 1.49% of the company’s stock.
Several institutional investors have recently modified their holdings of TEL. Northwestern Mutual Wealth Management Co. lifted its stake in shares of TE Connectivity by 38.6% during the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 1,379 shares of the electronics maker’s stock valued at $109,000 after buying an additional 384 shares in the last quarter. AllSquare Wealth Management LLC purchased a new position in shares of TE Connectivity during the 3rd quarter valued at $113,000. Acrospire Investment Management LLC purchased a new position in shares of TE Connectivity during the 2nd quarter valued at $126,000. Harfst & Associates Inc. lifted its stake in shares of TE Connectivity by 46.2% during the 2nd quarter. Harfst & Associates Inc. now owns 1,722 shares of the electronics maker’s stock valued at $135,000 after buying an additional 544 shares in the last quarter. Finally, Robecosam AG purchased a new position in shares of TE Connectivity during the 3rd quarter valued at $155,000. Institutional investors and hedge funds own 90.02% of the company’s stock.
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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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