Zacks Investment Research downgraded shares of TE Connectivity (NYSE:TEL) from a hold rating to a sell rating in a research note published on Friday.

According to Zacks, “TE Connectivity reported mixed fourth-quarter fiscal 2018 results wherein earnings topped the estimates whereas revenues lagged. The company is currently suffering from end market fluctuations due to which the company has provided weaker guidance for the current quarter. Also, sluggish auto production in Europe and China remains a concern for the company’s transportation solutions segment. Nevertheless, the company’s strong progress on its strategic priorities is expected to benefit its business in the long run. Further, its well-performing industrial and communications solutions portfolio is a major positive. However, intensifying competition in the electronic components market poses a severe pricing pressure and risk to its market share. Notably, the stock has underperformed the industry it belongs to on a year-to-date basis.”

Several other brokerages have also recently weighed in on TEL. Royal Bank of Canada set a $114.00 target price on TE Connectivity and gave the stock a buy rating in a report on Tuesday, September 25th. SunTrust Banks reiterated a hold rating and issued a $82.00 target price on shares of TE Connectivity in a report on Wednesday, October 31st. Robert W. Baird cut TE Connectivity from an outperform rating to a neutral rating in a report on Monday, October 1st. Macquarie began coverage on TE Connectivity in a report on Monday, October 8th. They issued an outperform rating for the company. Finally, Morgan Stanley lowered their target price on TE Connectivity from $107.00 to $102.00 and set an overweight rating for the company in a report on Wednesday, October 3rd. Two analysts have rated the stock with a sell rating, three have issued a hold rating and nine have issued a buy rating to the stock. TE Connectivity has an average rating of Buy and a consensus target price of $108.00.

TEL opened at $74.62 on Friday. TE Connectivity has a 52-week low of $73.70 and a 52-week high of $108.23. The company has a debt-to-equity ratio of 0.28, a current ratio of 1.41 and a quick ratio of 0.98. The firm has a market cap of $26.64 billion, a P/E ratio of 13.29, a price-to-earnings-growth ratio of 1.23 and a beta of 1.16.

TE Connectivity (NYSE:TEL) last posted its quarterly earnings data on Wednesday, October 31st. The electronics maker reported $1.35 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $1.33 by $0.02. TE Connectivity had a return on equity of 20.06% and a net margin of 17.69%. The company had revenue of $3.51 billion during the quarter, compared to analysts’ expectations of $3.65 billion. During the same quarter in the previous year, the business earned $1.25 EPS. TE Connectivity’s revenue was up 8.5% compared to the same quarter last year. As a group, research analysts forecast that TE Connectivity will post 5.78 earnings per share for the current fiscal year.

The company also recently announced a quarterly dividend, which will be paid on Friday, December 7th. Shareholders of record on Friday, November 23rd will be issued a $0.44 dividend. This represents a $1.76 annualized dividend and a dividend yield of 2.36%. The ex-dividend date of this dividend is Wednesday, November 21st. TE Connectivity’s dividend payout ratio is 31.37%.

Several hedge funds have recently modified their holdings of the business. Principal Financial Group Inc. raised its position in shares of TE Connectivity by 4.2% in the 1st quarter. Principal Financial Group Inc. now owns 686,822 shares of the electronics maker’s stock worth $68,614,000 after acquiring an additional 27,495 shares in the last quarter. State of Alaska Department of Revenue raised its position in shares of TE Connectivity by 23.3% in the 2nd quarter. State of Alaska Department of Revenue now owns 18,200 shares of the electronics maker’s stock worth $1,638,000 after acquiring an additional 3,440 shares in the last quarter. Municipal Employees Retirement System of Michigan raised its position in shares of TE Connectivity by 169.6% in the 2nd quarter. Municipal Employees Retirement System of Michigan now owns 24,610 shares of the electronics maker’s stock worth $2,217,000 after acquiring an additional 15,480 shares in the last quarter. Cornerstone Wealth Management LLC bought a new position in shares of TE Connectivity in the 2nd quarter worth $489,000. Finally, Asset Advisors Corp raised its position in shares of TE Connectivity by 1.4% in the 2nd quarter. Asset Advisors Corp now owns 54,080 shares of the electronics maker’s stock worth $4,870,000 after acquiring an additional 760 shares in the last quarter. Institutional investors and hedge funds own 89.01% of the company’s stock.

About TE Connectivity

TE Connectivity Ltd., together with its subsidiaries, engages in the design, manufacture, and sale of connectivity and sensors solutions in the Americas, Europe, the Middle East, Africa, and the Asia–Pacific. The company operates through three segments: Transportation Solutions, Industrial Solutions, and Communications Solutions.

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