TE Connectivity Ltd. (TEL) Stock Rating Upgraded by Zacks Investment Research
TE Connectivity Ltd. (NYSE:TEL) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research report issued to clients and investors on Wednesday.
According to Zacks, “TE Connectivity has a decent earnings surprise history, beating estimates thrice in the trailing four quarters. Robust growth in harsh environment and SubCom businesses, along with productivity improvements, boosted growth in the last reported quarter. Strong traction in the connectivity and sensor business, sales growth and design-wins in automotive & integrated multiple components, and rebound in transportation business were key growth drivers. However, sluggish industrial markets, weakness in oil & gas 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. Going forward, industrial, data & devices, and communications businesses are expected to be impacted by the weakness in Chinese economy. “
Other equities analysts have also issued reports about the stock. Morgan Stanley reiterated a “buy” rating on shares of TE Connectivity in a research report on Tuesday, September 20th. Royal Bank Of Canada reiterated a “buy” rating and issued a $66.00 price objective on shares of TE Connectivity in a research report on Friday, June 17th. Deutsche Bank AG reiterated a “hold” rating and issued a $65.00 price objective on shares of TE Connectivity in a research report on Wednesday, June 15th. Finally, RBC Capital Markets reissued an “outperform” rating and issued a $65.00 target price (up previously from $63.00) on shares of TE Connectivity in a report on Thursday, July 21st. Two equities research analysts have rated the stock with a hold rating and three have assigned a buy rating to the stock. The stock presently has a consensus rating of “Buy” and an average target price of $64.33.
Shares of TE Connectivity (NYSE:TEL) opened at 61.35 on Wednesday. The stock has a market cap of $21.81 billion, a price-to-earnings ratio of 8.96 and a beta of 1.41. TE Connectivity has a one year low of $51.70 and a one year high of $67.99. The company has a 50 day moving average of $63.11 and a 200-day moving average of $60.86.
TE Connectivity (NYSE:TEL) last posted 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. TE Connectivity had a net margin of 21.97% and a return on equity of 16.72%. The firm had revenue of $3.12 billion for the quarter, compared to analyst estimates of $3.13 billion. During the same period last year, the firm posted $0.90 EPS. TE Connectivity’s quarterly revenue was up .1% on a year-over-year basis. On average, analysts anticipate that TE Connectivity will post $4.01 earnings per share for the current year.
In other news, CEO Thomas J. Lynch sold 123,635 shares of TE Connectivity stock in a transaction 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 completion of the transaction, the chief executive officer now owns 507,776 shares of the company’s stock, valued at approximately $31,878,177.28. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, COO Joseph B. Donahue sold 10,000 shares of TE Connectivity stock in a transaction on Tuesday, August 30th. The stock was sold at an average price of $63.78, for a total value of $637,800.00. Following the transaction, the chief operating officer now directly owns 38,825 shares of the company’s stock, valued at approximately $2,476,258.50. The disclosure for this sale can be found here. 1.49% of the stock is owned by company insiders.
Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Adage Capital Partners GP L.L.C. increased its position in TE Connectivity by 67.6% in the first quarter. Adage Capital Partners GP L.L.C. now owns 466,068 shares of the company’s stock valued at $28,859,000 after buying an additional 188,022 shares during the period. HL Financial Services LLC increased its position in TE Connectivity by 4.1% in the second quarter. HL Financial Services LLC now owns 1,257,346 shares of the company’s stock valued at $71,807,000 after buying an additional 49,697 shares during the period. AMP Capital Investors Ltd increased its position in TE Connectivity by 33.9% in the first quarter. AMP Capital Investors Ltd now owns 151,820 shares of the company’s stock valued at $9,289,000 after buying an additional 38,443 shares during the period. Clark Capital Management Group Inc. purchased a new position in TE Connectivity during the first quarter valued at about $294,000. Finally, PGGM Investments increased its position in TE Connectivity by 76.3% in the second quarter. PGGM Investments now owns 751,144 shares of the company’s stock valued at $42,898,000 after buying an additional 325,170 shares during the period. 91.55% of the stock is owned by institutional investors and hedge funds.
About TE Connectivity
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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