TE Connectivity (TEL) Downgraded by Zacks Investment Research

TE Connectivity (NYSE:TEL) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a note issued to investors on Wednesday.

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 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 over the past year. The company is currently experiencing inefficiencies in its supply chain.”

Several other equities research analysts have also recently weighed in on the company. ValuEngine upgraded TE Connectivity from a “hold” rating to a “buy” rating in a research note on Sunday, December 31st. Stifel Nicolaus upped their target price on TE Connectivity from $98.00 to $105.00 and gave the stock a “buy” rating in a research note on Thursday, December 14th. Morgan Stanley upped their target price on TE Connectivity from $97.00 to $102.00 and gave the stock an “overweight” rating in a research note on Wednesday, December 13th. Cross Research upgraded TE Connectivity from a “hold” rating to a “buy” rating in a research note on Friday, December 8th. Finally, Cowen restated an “outperform” rating and set a $110.00 target price (up from $95.00) on shares of TE Connectivity in a research note on Thursday, December 7th. One research analyst has rated the stock with a sell rating, three have given a hold rating and thirteen have assigned a buy rating to the company. The stock has an average rating of “Buy” and an average price target of $159.38.

Shares of TE Connectivity (NYSE:TEL) traded down $0.61 during mid-day trading on Wednesday, hitting $98.21. The company had a trading volume of 1,493,900 shares, compared to its average volume of 1,762,450. The company has a current ratio of 1.54, a quick ratio of 1.07 and a debt-to-equity ratio of 0.37. The company has a market capitalization of $35,100.00, a PE ratio of 20.99, a P/E/G ratio of 1.73 and a beta of 1.08. TE Connectivity has a fifty-two week low of $67.46 and a fifty-two week high of $99.94.

TE Connectivity (NYSE:TEL) last issued its quarterly earnings results on Wednesday, November 1st. The electronics maker reported $1.25 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.16 by $0.09. The business had revenue of $3.46 billion during the quarter, compared to analysts’ expectations of $3.28 billion. TE Connectivity had a return on equity of 18.97% and a net margin of 12.84%. The firm’s revenue for the quarter was up 3.7% compared to the same quarter last year. During the same period in the previous year, the company posted $1.22 earnings per share. equities research analysts predict that TE Connectivity will post 5.27 earnings per share for the current fiscal year.

TE Connectivity declared that its Board of Directors has initiated a stock repurchase program on Friday, December 8th that authorizes the company to buyback $1.50 billion in shares. This buyback authorization authorizes the electronics maker to purchase shares of its stock through open market purchases. Stock buyback programs are usually a sign that the company’s board believes its shares are undervalued.

In other news, SVP Eric Resch sold 48,950 shares of the company’s stock in a transaction on Tuesday, November 14th. The shares were sold at an average price of $93.75, for a total transaction of $4,589,062.50. Following the completion of the transaction, the senior vice president now directly owns 78,129 shares in the company, valued at $7,324,593.75. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Thomas J. Lynch sold 130,617 shares of the company’s 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 of the company’s stock, valued at $39,209,055. The disclosure for this sale can be found here. Insiders have sold 705,373 shares of company stock valued at $65,870,755 over the last quarter. Company insiders own 1.49% of the company’s stock.

Large investors have recently made changes to their positions in the company. Vanguard Group Inc. increased its holdings in TE Connectivity by 2.3% in the second quarter. Vanguard Group Inc. now owns 23,312,100 shares of the electronics maker’s stock valued at $1,834,196,000 after purchasing an additional 521,884 shares during the period. Russell Investments Group Ltd. increased its holdings in TE Connectivity by 10.9% in the third quarter. Russell Investments Group Ltd. now owns 227,441 shares of the electronics maker’s stock valued at $18,890,000 after purchasing an additional 22,345 shares during the period. PNC Financial Services Group Inc. increased its holdings in TE Connectivity by 499.5% in the second quarter. PNC Financial Services Group Inc. now owns 1,386,610 shares of the electronics maker’s stock valued at $109,098,000 after purchasing an additional 1,155,316 shares during the period. U S Global Investors Inc. increased its holdings in TE Connectivity by 21.1% in the second quarter. U S Global Investors Inc. now owns 6,540 shares of the electronics maker’s stock valued at $515,000 after purchasing an additional 1,140 shares during the period. Finally, Meag Munich Ergo Kapitalanlagegesellschaft MBH increased its holdings in TE Connectivity by 55.2% in the third quarter. Meag Munich Ergo Kapitalanlagegesellschaft MBH now owns 315,263 shares of the electronics maker’s stock valued at $26,131,000 after purchasing an additional 112,161 shares during the period. Institutional investors 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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