Zacks Investment Research Upgrades TE Connectivity (TEL) to Buy

Zacks Investment Research upgraded shares of TE Connectivity (NYSE:TEL) from a hold rating to a buy rating in a report issued on Monday. Zacks Investment Research currently has $112.00 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. Moreover, the stock has outperformed the industry average in a year. It expects transportation business to experience significant organic growth, fueled by rise in global auto production and impressive heavy truck business in key end markets. Further, its Communications and Industrial segments are witnessing strong performance, thus stoking growth. However on the negative side, sluggish industrial markets and derivative impact of lower oil prices are posing as major headwinds, thwarting growth. This apart, adverse currency fluctuations and high restructuring expenses might hurt the company’s performance.”

Several other brokerages also recently issued reports on TEL. Stifel Nicolaus reissued a buy rating and issued a $98.00 price objective on shares of TE Connectivity in a research note on Friday, November 3rd. Royal Bank of Canada decreased their price objective on shares of TE Connectivity from $100.00 to $95.00 and set an outperform rating for the company in a research note on Thursday, November 2nd. Robert W. Baird began coverage on shares of TE Connectivity in a research note on Friday, November 3rd. They issued an outperform rating and a $105.00 price objective for the company. ValuEngine raised shares of TE Connectivity from a hold rating to a buy rating in a research note on Sunday, December 31st. Finally, Wells Fargo & Co began coverage on shares of TE Connectivity in a research note on Friday, November 10th. They set an outperform rating and a $105.00 price target for the company. One research analyst has rated the stock with a sell rating, three have given a hold rating and thirteen have given a buy rating to the stock. TE Connectivity presently has an average rating of Buy and an average price target of $159.38.

TE Connectivity (TEL) traded down $0.30 on Monday, reaching $98.52. The company had a trading volume of 2,254,100 shares, compared to its average volume of 1,832,686. The stock has a market capitalization of $34,640.00, a price-to-earnings ratio of 21.05, a P/E/G ratio of 1.73 and a beta of 1.08. TE Connectivity has a 12 month low of $67.47 and a 12 month high of $99.94. The company has a current ratio of 1.54, a quick ratio of 1.07 and a debt-to-equity ratio of 0.37.

TE Connectivity (NYSE:TEL) last announced its quarterly earnings data on Wednesday, November 1st. The electronics maker reported $1.25 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $1.16 by $0.09. The business had revenue of $3.46 billion during the quarter, compared to the consensus estimate of $3.28 billion. TE Connectivity had a net margin of 12.84% and a return on equity of 18.97%. The firm’s quarterly revenue was up 3.7% compared to the same quarter last year. During the same quarter last year, the firm earned $1.22 earnings per share. analysts predict that TE Connectivity will post 5.27 earnings per share for the current year.

TE Connectivity declared that its Board of Directors has approved a share repurchase program on Friday, December 8th that allows the company to repurchase $1.50 billion in shares. This repurchase authorization allows the electronics maker to reacquire shares of its stock through open market purchases. Shares repurchase programs are typically a sign that the company’s leadership believes its stock is undervalued.

In other TE Connectivity news, CFO Heath A. Mitts sold 10,736 shares of TE Connectivity stock in a transaction on Wednesday, November 8th. The shares were sold at an average price of $93.14, for a total value of $999,951.04. The transaction was disclosed in a document filed with the SEC, which is available through this link. Also, SVP Robert J. Ott sold 20,000 shares of TE Connectivity stock in a transaction on Tuesday, November 21st. The stock was sold at an average price of $95.78, for a total transaction of $1,915,600.00. Following the completion of the transaction, the senior vice president now directly owns 31,390 shares in the company, valued at $3,006,534.20. The disclosure for this sale can be found here. Insiders sold 705,373 shares of company stock valued at $65,870,755 in the last three months. 1.49% of the stock is currently owned by insiders.

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Moors & Cabot Inc. grew its holdings in TE Connectivity by 0.8% in the second quarter. Moors & Cabot Inc. now owns 2,813 shares of the electronics maker’s stock worth $222,000 after purchasing an additional 21 shares during the last quarter. Veritable L.P. grew its holdings in shares of TE Connectivity by 1.1% during the second quarter. Veritable L.P. now owns 8,027 shares of the electronics maker’s stock valued at $632,000 after buying an additional 87 shares during the last quarter. Bahl & Gaynor Inc. grew its holdings in shares of TE Connectivity by 1.9% during the second quarter. Bahl & Gaynor Inc. now owns 6,517 shares of the electronics maker’s stock valued at $452,000 after buying an additional 120 shares during the last quarter. Thrivent Financial For Lutherans grew its holdings in shares of TE Connectivity by 2.3% during the second quarter. Thrivent Financial For Lutherans now owns 13,520 shares of the electronics maker’s stock valued at $1,064,000 after buying an additional 310 shares during the last quarter. Finally, Quadrant Capital Group LLC grew its holdings in shares of TE Connectivity by 9.1% during the second quarter. Quadrant Capital Group LLC now owns 4,575 shares of the electronics maker’s stock valued at $356,000 after buying an additional 380 shares during the last quarter. 90.02% of the stock is currently owned by institutional investors and hedge funds.

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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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