TE Connectivity Ltd. (TEL) Downgraded by Zacks Investment Research to Sell
According to Zacks, “TE Connectivity has been suffering from sluggishness in industrial markets. Further, weakness in oil & gas markets and the derivative impact of lower oil prices hurt the company’s operations and are expected to remain formidable headwinds, going forward. Also, adverse currency fluctuations and high restructuring expenses have been straining the company’s results. Going forward, TE Connectivity believes that its industrial, data & devices, and communications businesses will continue to be marred by softness in the Chinese economy. The company also expects weakness in Communication segment to continue. However, TE Connectivity has a decent earnings surprise history, beating estimates thrice in the trailing four quarters. Strong performance of the sensors & harsh environments business and a rebound in transportation business remain strong growth drivers for the company.”
A number of other research analysts have also recently weighed in on TEL. Deutsche Bank AG restated a hold rating and issued a $65.00 price objective on shares of TE Connectivity in a report on Wednesday, June 15th. Royal Bank Of Canada restated a buy rating and issued a $66.00 price objective on shares of TE Connectivity in a report on Friday, June 17th. Morgan Stanley reiterated a buy rating on shares of TE Connectivity in a report on Tuesday. Finally, RBC Capital Markets reiterated an outperform rating and set a $65.00 price target (up previously from $63.00) on shares of TE Connectivity in a report on Thursday, July 21st. One equities research analyst has rated the stock with a sell rating, one has assigned a hold rating and three have given a buy rating to the stock. TE Connectivity presently has a consensus rating of Hold and a consensus price target of $64.33.
TE Connectivity (NYSE:TEL) opened at 62.95 on Tuesday. The stock’s 50 day moving average is $61.57 and its 200 day moving average is $60.46. The stock has a market capitalization of $22.38 billion, a price-to-earnings ratio of 9.19 and a beta of 1.39. TE Connectivity has a 12-month low of $51.70 and a 12-month high of $67.99.
TE Connectivity (NYSE:TEL) last announced its quarterly earnings data on Wednesday, July 20th. The company reported $1.08 earnings per share for the quarter, beating analysts’ consensus estimates of $1.03 by $0.05. The firm earned $3.12 billion during the quarter, compared to analysts’ expectations of $3.13 billion. TE Connectivity had a net margin of 21.97% and a return on equity of 16.72%. The business’s quarterly revenue was up .1% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.90 earnings per share. Equities analysts predict that TE Connectivity will post $4.01 earnings per share for the current fiscal year.
The company also recently declared a quarterly dividend, which was paid on Friday, September 9th. Shareholders of record on Friday, August 26th were issued a dividend of $0.37 per share. This represents a $1.48 annualized dividend and a yield of 2.35%. The ex-dividend date of this dividend was Wednesday, August 24th. TE Connectivity’s dividend payout ratio (DPR) is presently 21.67%.
In other TE Connectivity news, EVP Robert N. Shaddock sold 11,800 shares of the business’s stock in a transaction that occurred on Monday, August 15th. The shares were sold at an average price of $61.25, for a total transaction of $722,750.00. Following the completion of the transaction, the executive vice president now owns 46,274 shares in the company, valued at approximately $2,834,282.50. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Thomas J. Lynch sold 123,635 shares of the business’s stock in a transaction that occurred on Tuesday, September 6th. The stock was sold at an average price of $62.78, for a total transaction of $7,761,805.30. Following the transaction, the chief executive officer now owns 507,776 shares of the company’s stock, valued at approximately $31,878,177.28. The disclosure for this sale can be found here. Company insiders own 1.49% of the company’s stock.
Hedge funds and other institutional investors have recently bought and sold shares of the company. Franklin Resources Inc. boosted its position in TE Connectivity by 3.0% in the first quarter. Franklin Resources Inc. now owns 1,675,728 shares of the company’s stock valued at $103,761,000 after buying an additional 49,475 shares during the period. Wrapmanager Inc. boosted its position in shares of TE Connectivity by 7.7% in the first quarter. Wrapmanager Inc. now owns 15,491 shares of the company’s stock valued at $959,000 after buying an additional 1,113 shares during the last quarter. Ngam Advisors L.P. boosted its position in shares of TE Connectivity by 5.0% in the first quarter. Ngam Advisors L.P. now owns 184,403 shares of the company’s stock valued at $11,418,000 after buying an additional 8,790 shares during the last quarter. Icon Advisers Inc. Co. boosted its position in shares of TE Connectivity by 8.3% in the first quarter. Icon Advisers Inc. Co. now owns 127,900 shares of the company’s stock valued at $7,920,000 after buying an additional 9,800 shares during the last quarter. Finally, CIBC World Markets Inc. bought a new position in shares of TE Connectivity during the first quarter valued at about $268,000. Institutional investors own 91.54% of the company’s stock.
TE Connectivity Company Profile
TE Connectivity Ltd. (TE Connectivity) is a technology company. The Company designs and manufactures connectivity and sensors solutions. It operates its business through three segments: Transportation Solutions, which offers various products, including terminals and connector systems and components, relays, circuit protection devices, sensors, and application tooling, among others; Industrial Solutions, which include terminals and connector systems and components, heat shrink tubing, relays, wire and cable, and Communications Solutions, which include terminals and connector systems and components, circuit protection devices, antennas, relays and heat shrink tubing.
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