TE Connectivity (TEL) Rating Increased to Buy at Zacks Investment Research
Zacks Investment Research upgraded shares of TE Connectivity (NYSE:TEL) from a hold rating to a buy rating in a research report sent to investors on Monday. They currently have $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.”
A number of other research analysts also recently issued reports on TEL. Morgan Stanley reiterated an overweight rating and set a $89.00 target price on shares of TE Connectivity in a research report on Wednesday, September 20th. Stifel Nicolaus reiterated a buy rating and set a $87.00 target price on shares of TE Connectivity in a research report on Tuesday, October 17th. Royal Bank of Canada reiterated a buy rating and set a $95.00 target price (up previously from $90.00) on shares of TE Connectivity in a research report on Monday, October 30th. SunTrust Banks boosted their target price on shares of TE Connectivity to $90.00 and gave the company a hold rating in a research report on Thursday, November 2nd. They noted that the move was a valuation call. Finally, Citigroup boosted their target price on shares of TE Connectivity from $92.00 to $106.00 and gave the company a buy rating in a research report on Thursday, November 2nd. One investment analyst has rated the stock with a sell rating, three have assigned a hold rating and thirteen have given a buy rating to the stock. TE Connectivity currently has an average rating of Buy and a consensus target price of $159.38.
TE Connectivity (NYSE:TEL) last released its earnings results on Wednesday, November 1st. The electronics maker reported $1.25 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $1.16 by $0.09. TE Connectivity had a net margin of 12.84% and a return on equity of 18.97%. The company had revenue of $3.46 billion for the quarter, compared to the consensus estimate of $3.28 billion. During the same quarter in the previous year, the company earned $1.22 EPS. TE Connectivity’s quarterly revenue was up 3.7% compared to the same quarter last year. analysts anticipate that TE Connectivity will post 5.27 earnings per share for the current fiscal year.
TE Connectivity declared that its board has authorized a stock buyback program on Friday, December 8th that allows the company to buyback $1.50 billion in outstanding shares. This buyback authorization allows the electronics maker to reacquire shares of its stock through open market purchases. Stock buyback programs are usually an indication that the company’s management believes its stock is undervalued.
In other TE Connectivity news, SVP Mario Calastri sold 8,539 shares of the company’s stock in a transaction on Monday, November 6th. The shares were sold at an average price of $93.27, for a total transaction of $796,432.53. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, CFO Heath A. Mitts sold 10,736 shares of the company’s stock in a transaction on Wednesday, November 8th. The stock was sold at an average price of $93.14, for a total transaction of $999,951.04. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 705,373 shares of company stock worth $65,870,755. Corporate insiders own 1.49% of the company’s stock.
Hedge funds have recently made changes to their positions in the company. Northwestern Mutual Wealth Management Co. raised its holdings in shares of TE Connectivity by 38.6% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 1,379 shares of the electronics maker’s stock valued at $109,000 after purchasing an additional 384 shares during the last quarter. AllSquare Wealth Management LLC purchased a new stake in shares of TE Connectivity in the third quarter valued at about $113,000. Acrospire Investment Management LLC purchased a new stake in shares of TE Connectivity in the second quarter valued at about $126,000. Harfst & Associates Inc. raised its holdings in shares of TE Connectivity by 46.2% in the second quarter. Harfst & Associates Inc. now owns 1,722 shares of the electronics maker’s stock valued at $135,000 after purchasing an additional 544 shares during the last quarter. Finally, Robecosam AG purchased a new stake in shares of TE Connectivity in the third quarter valued at about $155,000. Institutional investors own 90.02% of the company’s stock.
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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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