Zacks Investment Research upgraded shares of TE Connectivity (NYSE:TEL) from a sell rating to a hold rating in a research report sent to investors on Wednesday morning.
According to Zacks, “TE Connectivity’s robust solutions portfolio continues to be the key driver of its top-line growth. Well-performing Industrial and communications solutions are major positives. Further, solid organic growth in TE Connectivity’s automotive, commercial transportation and sensor transportation businesses are aiding the performance of its transportation solutions. We believe the company’s strong progress on its strategic priorities is expected to benefit its business in the long run. Estimates have been stable lately ahead of the company’s Q1 earnings release. The company has positive record of earnings surprises in recent quarters. However, intensifying competition in the electronic components market poses a severe pricing pressure and risk to its market share. Also, sluggish auto production in Europe and China is a concern. Notably, the stock has underperformed the industry it belongs to over a year.”
TEL has been the subject of several other research reports. Macquarie assumed coverage on shares of TE Connectivity in a research report on Monday, October 8th. They set an outperform rating for the company. Royal Bank of Canada set a $114.00 price objective on shares of TE Connectivity and gave the stock a buy rating in a research report on Tuesday, September 25th. Robert W. Baird reaffirmed a hold rating and set a $79.00 price objective on shares of TE Connectivity in a research report on Sunday, January 6th. Jefferies Financial Group initiated coverage on shares of TE Connectivity in a research report on Tuesday, December 4th. They set a hold rating and a $84.00 price objective for the company. Finally, ValuEngine upgraded TE Connectivity from a sell rating to a hold rating in a report on Tuesday, December 18th. Six equities research analysts have rated the stock with a hold rating and seven have issued a buy rating to the company’s stock. TE Connectivity currently has an average rating of Buy and a consensus price target of $101.27.
NYSE:TEL opened at $81.25 on Wednesday. The company has a market cap of $26.92 billion, a price-to-earnings ratio of 14.48, a PEG ratio of 1.23 and a beta of 1.01. The company has a debt-to-equity ratio of 0.28, a current ratio of 1.41 and a quick ratio of 0.98. TE Connectivity has a fifty-two week low of $69.84 and a fifty-two week high of $108.23.
TE Connectivity (NYSE:TEL) last released its earnings results on Wednesday, October 31st. The electronics maker reported $1.35 earnings per share for the quarter, beating analysts’ consensus estimates of $1.33 by $0.02. The business had revenue of $3.51 billion during the quarter, compared to the consensus estimate of $3.65 billion. TE Connectivity had a net margin of 17.69% and a return on equity of 20.06%. The company’s revenue for the quarter was up 8.5% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $1.25 EPS. On average, sell-side analysts expect that TE Connectivity will post 5.7 EPS for the current year.
TE Connectivity declared that its Board of Directors has initiated a share repurchase plan on Friday, December 14th that allows the company to buyback $1.50 billion in outstanding shares. This buyback authorization allows the electronics maker to purchase up to 5.9% of its shares through open market purchases. Shares buyback plans are typically an indication that the company’s board of directors believes its stock is undervalued.
A number of hedge funds have recently bought and sold shares of the business. HPM Partners LLC increased its position in TE Connectivity by 43.5% in the second quarter. HPM Partners LLC now owns 5,697 shares of the electronics maker’s stock worth $513,000 after buying an additional 1,728 shares in the last quarter. AMP Capital Investors Ltd lifted its stake in shares of TE Connectivity by 6.4% in the 3rd quarter. AMP Capital Investors Ltd now owns 180,245 shares of the electronics maker’s stock valued at $15,879,000 after purchasing an additional 10,882 shares during the last quarter. Jefferies Group LLC lifted its stake in shares of TE Connectivity by 14.6% in the 3rd quarter. Jefferies Group LLC now owns 176,367 shares of the electronics maker’s stock valued at $15,508,000 after purchasing an additional 22,499 shares during the last quarter. Advisors Asset Management Inc. lifted its stake in shares of TE Connectivity by 1,066.6% during the 2nd quarter. Advisors Asset Management Inc. now owns 7,233 shares of the electronics maker’s stock worth $498,000 after acquiring an additional 6,613 shares during the last quarter. Finally, Laurion Capital Management LP bought a new stake in shares of TE Connectivity during the 3rd quarter worth approximately $660,000. 91.51% of the stock is currently owned by institutional investors.
About TE Connectivity
TE Connectivity Ltd., together with its subsidiaries, manufactures and sells connectivity and sensors solutions in Europe, the Middle East, Africa, the AsiaPacific, and the Americas. The company operates through three segments: Transportation Solutions, Industrial Solutions, and Communications Solutions.
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