TE Connectivity Ltd. (TEL) Lowered to Hold at Zacks Investment Research
Zacks Investment Research lowered shares of TE Connectivity Ltd. (NYSE:TEL) from a buy rating to a hold rating in a report issued on Tuesday morning.
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.”
Several other research analysts also recently commented on the company. Royal Bank Of Canada reaffirmed an outperform rating and set a $86.00 target price on shares of TE Connectivity in a report on Tuesday, June 6th. BidaskClub downgraded TE Connectivity from a strong-buy rating to a buy rating in a report on Tuesday, July 25th. Finally, Cowen and Company reaffirmed an outperform rating and set a $95.00 target price (up from $90.00) on shares of TE Connectivity in a report on Monday, June 5th. Two analysts have rated the stock with a sell rating, two have assigned a hold rating and five have given a buy rating to the company’s stock. The company currently has a consensus rating of Hold and a consensus target price of $84.14.
Shares of TE Connectivity (TEL) opened at 82.36 on Tuesday. The firm has a 50 day moving average price of $79.70 and a 200 day moving average price of $77.71. TE Connectivity has a one year low of $60.59 and a one year high of $85.20. The company has a market capitalization of $29.10 billion, a P/E ratio of 17.49 and a beta of 1.05.
TE Connectivity (NYSE:TEL) last announced its earnings results on Wednesday, July 26th. The electronics maker reported $1.24 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $1.17 by $0.07. The firm had revenue of $3.37 billion for the quarter, compared to the consensus estimate of $3.28 billion. TE Connectivity had a return on equity of 19.76% and a net margin of 12.98%. The business’s quarterly revenue was up 7.9% compared to the same quarter last year. During the same period in the previous year, the business earned $1.08 EPS. On average, equities research analysts predict that TE Connectivity will post $4.75 EPS for the current fiscal year.
The firm also recently disclosed a quarterly dividend, which was paid on Friday, September 8th. Stockholders of record on Friday, August 25th were given a $0.40 dividend. This represents a $1.60 annualized dividend and a dividend yield of 1.94%. The ex-dividend date was Wednesday, August 23rd. TE Connectivity’s dividend payout ratio (DPR) is presently 33.97%.
In other news, SVP Mario Calastri sold 6,000 shares of TE Connectivity stock in a transaction dated Wednesday, August 2nd. The stock was sold at an average price of $80.23, for a total value of $481,380.00. Following the completion of the transaction, the senior vice president now directly owns 23,078 shares of the company’s stock, valued at approximately $1,851,547.94. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, COO Joseph B. Donahue sold 6,300 shares of TE Connectivity stock in a transaction dated Monday, August 7th. The stock was sold at an average price of $80.70, for a total value of $508,410.00. Following the completion of the transaction, the chief operating officer now directly owns 34,609 shares of the company’s stock, valued at $2,792,946.30. The disclosure for this sale can be found here. Over the last three months, insiders sold 749,165 shares of company stock valued at $59,522,187. Corporate insiders own 1.30% of the company’s stock.
Several hedge funds have recently bought and sold shares of TEL. Duncker Streett & Co. Inc. increased its position in TE Connectivity by 17.8% in the 2nd quarter. Duncker Streett & Co. Inc. now owns 1,325 shares of the electronics maker’s stock valued at $104,000 after buying an additional 200 shares in the last quarter. First Command Bank increased its position in TE Connectivity by 19.6% in the 2nd quarter. First Command Bank now owns 1,348 shares of the electronics maker’s stock valued at $106,000 after buying an additional 221 shares in the last quarter. Guardian Life Insurance Co. of America increased its position in TE Connectivity by 0.7% in the 1st quarter. Guardian Life Insurance Co. of America now owns 1,370 shares of the electronics maker’s stock valued at $102,000 after buying an additional 9 shares in the last quarter. Northwestern Mutual Wealth Management Co. increased its position in TE Connectivity by 38.6% in 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. Finally, Acrospire Investment Management LLC bought a new stake in TE Connectivity in the 2nd quarter valued at about $126,000. 90.08% of the stock is owned by hedge funds and other institutional investors.
About TE Connectivity
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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