TE Connectivity Ltd. (TEL) Lifted to “Buy” at Zacks Investment Research
Zacks Investment Research upgraded shares of TE Connectivity Ltd. (NYSE:TEL) from a hold rating to a buy rating in a research note released on Monday morning. Zacks Investment Research currently has $88.00 price objective 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. It expects transportation business to experience high-single-digit organic growth, fuelled 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. Additionally, TE Connectivity’s solid financial health adds to its strength. 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.”
A number of other research firms also recently weighed in on TEL. BidaskClub downgraded shares of TE Connectivity from a strong-buy rating to a buy rating in a research report on Tuesday, July 25th. Cowen and Company reissued a buy rating and set a $95.00 price objective on shares of TE Connectivity in a research report on Thursday, August 10th. Finally, Royal Bank Of Canada reissued an outperform rating and set a $86.00 price objective on shares of TE Connectivity in a research report on Tuesday, June 6th. Two equities research analysts have rated the stock with a sell rating, one has issued a hold rating and six have issued a buy rating to the company. The stock presently has an average rating of Hold and a consensus target price of $83.43.
Shares of TE Connectivity (TEL) opened at 79.60 on Monday. The firm has a market capitalization of $28.13 billion, a PE ratio of 16.90 and a beta of 1.06. The firm has a 50-day moving average of $80.10 and a 200-day moving average of $77.20. TE Connectivity has a 12-month low of $60.38 and a 12-month high of $85.20.
TE Connectivity (NYSE:TEL) last released its earnings results on Wednesday, July 26th. The electronics maker reported $1.24 earnings per share for the quarter, topping the Zacks’ 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 net margin of 12.98% and a return on equity of 19.76%. The company’s revenue was up 7.9% compared to the same quarter last year. During the same period in the prior year, the firm earned $1.08 EPS. Equities analysts anticipate that TE Connectivity will post $4.74 earnings per share for the current year.
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The firm also recently disclosed a quarterly dividend, which will be paid on Friday, September 8th. Stockholders of record on Friday, August 25th will be paid a $0.40 dividend. This represents a $1.60 annualized dividend and a dividend yield of 2.01%. The ex-dividend date is Wednesday, August 23rd. TE Connectivity’s dividend payout ratio (DPR) is presently 33.97%.
In other TE Connectivity news, SVP Mario Calastri sold 6,000 shares of the firm’s stock in a transaction that occurred on Wednesday, August 2nd. The shares were sold at an average price of $80.23, for a total transaction of $481,380.00. Following the sale, the senior vice president now owns 23,078 shares in the company, valued at approximately $1,851,547.94. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, COO Joseph B. Donahue sold 52,575 shares of the firm’s stock in a transaction that occurred on Thursday, August 3rd. The stock was sold at an average price of $80.03, for a total transaction of $4,207,577.25. Following the sale, the chief operating officer now owns 93,484 shares in the company, valued at approximately $7,481,524.52. The disclosure for this sale can be found here. Insiders sold a total of 563,132 shares of company stock worth $44,771,630 in the last quarter. Company insiders own 1.30% of the company’s stock.
Large investors have recently added to or reduced their stakes in the company. Duncker Streett & Co. Inc. boosted its stake in TE Connectivity by 17.8% in the second quarter. Duncker Streett & Co. Inc. now owns 1,325 shares of the electronics maker’s stock worth $104,000 after buying an additional 200 shares during the last quarter. First Command Bank boosted its stake in TE Connectivity by 19.6% in the second quarter. First Command Bank now owns 1,348 shares of the electronics maker’s stock worth $106,000 after buying an additional 221 shares during the last quarter. Guardian Life Insurance Co. of America boosted its stake in TE Connectivity by 0.7% in the first quarter. Guardian Life Insurance Co. of America now owns 1,370 shares of the electronics maker’s stock worth $102,000 after buying an additional 9 shares during the last quarter. Northwestern Mutual Wealth Management Co. boosted its stake in 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 worth $109,000 after buying an additional 384 shares during the last quarter. Finally, Webster Bank N. A. boosted its stake in TE Connectivity by 675.0% in the first quarter. Webster Bank N. A. now owns 1,550 shares of the electronics maker’s stock worth $116,000 after buying an additional 1,350 shares during the last quarter. Institutional investors own 88.09% of the company’s stock.
TE Connectivity Company Profile
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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