TE Connectivity (NYSE:TEL) Upgraded by Zacks Research to Strong-Buy Rating

Zacks Research upgraded shares of TE Connectivity (NYSE:TEL) from a hold rating to a strong-buy rating in a research report report published on Monday morning,Zacks.com reports.

Other equities analysts have also issued research reports about the stock. Jefferies Financial Group upgraded shares of TE Connectivity from a “hold” rating to a “strong-buy” rating in a research report on Wednesday, April 15th. Wells Fargo & Company increased their target price on shares of TE Connectivity from $214.00 to $226.00 and gave the stock an “equal weight” rating in a research report on Thursday, April 23rd. Truist Financial cut their target price on shares of TE Connectivity from $244.00 to $240.00 and set a “hold” rating for the company in a research report on Thursday, April 23rd. The Goldman Sachs Group set a $286.00 target price on shares of TE Connectivity in a research report on Wednesday, April 22nd. Finally, Oppenheimer increased their target price on shares of TE Connectivity from $270.00 to $285.00 and gave the stock an “outperform” rating in a research report on Friday, February 13th. Two research analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating and five have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average target price of $256.57.

TE Connectivity Stock Performance

TEL traded down $1.32 during midday trading on Monday, reaching $202.98. The company had a trading volume of 669,124 shares, compared to its average volume of 2,313,148. The company has a debt-to-equity ratio of 0.42, a quick ratio of 1.20 and a current ratio of 1.89. The stock has a market cap of $59.56 billion, a PE ratio of 20.71, a P/E/G ratio of 1.48 and a beta of 1.26. TE Connectivity has a 12-month low of $142.45 and a 12-month high of $252.56. The business has a 50-day moving average price of $216.88 and a two-hundred day moving average price of $226.27.

TE Connectivity (NYSE:TEL) last released its earnings results on Wednesday, April 22nd. The electronics maker reported $2.73 earnings per share for the quarter, beating analysts’ consensus estimates of $2.70 by $0.03. The firm had revenue of $4.74 billion for the quarter, compared to analysts’ expectations of $4.72 billion. TE Connectivity had a net margin of 15.54% and a return on equity of 23.56%. The company’s quarterly revenue was up 14.4% on a year-over-year basis. During the same period in the previous year, the company earned $2.10 earnings per share. TE Connectivity has set its Q3 2026 guidance at 2.830-2.830 EPS. On average, sell-side analysts expect that TE Connectivity will post 11.28 earnings per share for the current fiscal year.

TE Connectivity declared that its board has approved a share repurchase plan on Wednesday, March 11th that permits the company to repurchase $3.00 billion in shares. This repurchase authorization permits the electronics maker to purchase up to 5% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company’s management believes its shares are undervalued.

TE Connectivity Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, June 12th. Stockholders of record on Friday, May 22nd will be given a $0.78 dividend. This represents a $3.12 dividend on an annualized basis and a dividend yield of 1.5%. This is an increase from TE Connectivity’s previous quarterly dividend of $0.71. The ex-dividend date is Friday, May 22nd. TE Connectivity’s dividend payout ratio (DPR) is 31.87%.

Insider Activity

In related news, EVP John S. Jenkins sold 6,155 shares of the firm’s stock in a transaction that occurred on Monday, February 9th. The shares were sold at an average price of $222.81, for a total value of $1,371,395.55. Following the sale, the executive vice president directly owned 21,810 shares of the company’s stock, valued at $4,859,486.10. This trade represents a 22.01% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, SVP Reuben M. Shaffer sold 1,425 shares of the firm’s stock in a transaction that occurred on Friday, February 13th. The shares were sold at an average price of $234.23, for a total transaction of $333,777.75. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 42,345 shares of company stock worth $9,627,260. 0.60% of the stock is owned by company insiders.

Institutional Investors Weigh In On TE Connectivity

A number of institutional investors and hedge funds have recently bought and sold shares of TEL. Norges Bank purchased a new stake in TE Connectivity in the fourth quarter valued at approximately $938,706,000. J. Stern & Co. LLP purchased a new stake in TE Connectivity in the fourth quarter valued at approximately $445,402,000. Arrowstreet Capital Limited Partnership raised its stake in TE Connectivity by 124.4% in the fourth quarter. Arrowstreet Capital Limited Partnership now owns 3,105,167 shares of the electronics maker’s stock valued at $706,457,000 after purchasing an additional 1,721,235 shares in the last quarter. Bank of America Corp DE raised its stake in TE Connectivity by 27.5% in the second quarter. Bank of America Corp DE now owns 6,274,917 shares of the electronics maker’s stock valued at $1,058,390,000 after purchasing an additional 1,352,152 shares in the last quarter. Finally, Robeco Institutional Asset Management B.V. raised its stake in TE Connectivity by 183.6% in the fourth quarter. Robeco Institutional Asset Management B.V. now owns 1,530,414 shares of the electronics maker’s stock valued at $348,184,000 after purchasing an additional 990,703 shares in the last quarter. 91.43% of the stock is owned by hedge funds and other institutional investors.

About TE Connectivity

TE Connectivity (NYSE: TEL) is a global industrial technology company that designs and manufactures connectivity and sensor solutions used to enable the flow of power and data in a wide range of applications. Its product portfolio includes electrical connectors, cable and wire harness assemblies, sensors, relays and switches, fiber-optic and coaxial interconnects, and other passive and active components that provide mechanical and electrical connections in complex systems.

The company’s products and engineered solutions serve diverse end markets such as automotive and transportation, industrial equipment, data communications and networks, aerospace and defense, medical devices, and energy.