Zacks Investment Research cut shares of TE Connectivity Ltd. (NYSE:TEL) from a buy rating to a hold rating in a research report sent to investors on Friday.
According to Zacks, “TE Connectivity’s third-quarter fiscal 2017 adjusted earnings beat the Zacks Consensus Estimate by 6% and also went up 14.8% year over year. The impressive earnings were driven by continued progress on strategic priorities, solid execution and impressive rise in the top line. TE Connectivity expects transportation business to experience high-single-digit organic increase, fuelled by rise in global auto production and impressive heavy truck business in key end markets. However, on the flip side, TE Connectivity expects seasonal declines in the upcoming quarters. Also supply chain inefficiencies are likely to have a negative impact on growth. 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. The stock has also underperformed the industry average over the past year.”
Several other research firms have also recently weighed in on TEL. BidaskClub cut TE Connectivity from a strong-buy rating to a buy rating in a research note on Tuesday, July 25th. Cowen and Company reaffirmed a buy rating and set a $95.00 target price on shares of TE Connectivity in a research note on Thursday, August 10th. Royal Bank Of Canada reaffirmed an outperform rating and set a $86.00 target price on shares of TE Connectivity in a research note on Tuesday, June 6th. Morgan Stanley lifted their target price on TE Connectivity from $85.00 to $87.00 and gave the company an overweight rating in a research note on Friday, April 28th. Finally, Deutsche Bank AG lifted their target price on TE Connectivity from $75.00 to $82.00 and gave the company a hold rating in a research note on Friday, April 28th. Two analysts have rated the stock with a sell rating, two have issued a hold rating and five have issued a buy rating to the company. The company currently has a consensus rating of Hold and a consensus price target of $83.43.
Shares of TE Connectivity (NYSE TEL) traded up 0.33% during trading on Friday, reaching $78.49. 941,510 shares of the company’s stock were exchanged. The stock has a 50 day moving average price of $80.21 and a 200-day moving average price of $77.10. The stock has a market capitalization of $27.74 billion, a price-to-earnings ratio of 16.66 and a beta of 1.06. TE Connectivity has a 52 week low of $60.38 and a 52 week 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, beating the Thomson Reuters’ consensus estimate of $1.17 by $0.07. TE Connectivity had a return on equity of 19.76% and a net margin of 12.98%. The company had revenue of $3.37 billion for the quarter, compared to analysts’ expectations of $3.28 billion. During the same quarter in the previous year, the business posted $1.08 EPS. The business’s revenue for the quarter was up 7.9% on a year-over-year basis. Analysts predict that TE Connectivity will post $4.75 earnings per share for the current year.
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The company also recently declared a quarterly dividend, which will be paid on Friday, September 8th. Investors of record on Friday, August 25th will be paid a $0.40 dividend. The ex-dividend date is Wednesday, August 23rd. This represents a $1.60 annualized dividend and a dividend yield of 2.04%. TE Connectivity’s payout ratio is 33.97%.
In related news, COO Joseph B. Donahue sold 52,575 shares of the business’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 value of $4,207,577.25. Following the completion of the sale, the chief operating officer now owns 93,484 shares of the company’s stock, valued at approximately $7,481,524.52. The sale was disclosed in a document filed with the SEC, which is available at this link. Also, SVP Robert J. Ott sold 31,400 shares of the business’s stock in a transaction that occurred on Wednesday, May 31st. The shares were sold at an average price of $79.14, for a total value of $2,484,996.00. Following the completion of the sale, the senior vice president now directly owns 42,371 shares of the company’s stock, valued at approximately $3,353,240.94. The disclosure for this sale can be found here. In the last three months, insiders sold 726,407 shares of company stock valued at $57,751,239. 1.30% of the stock is currently owned by company insiders.
Several large investors have recently made changes to their positions in the stock. Morgan Stanley raised its stake in TE Connectivity by 55.6% in the first quarter. Morgan Stanley now owns 1,552,290 shares of the electronics maker’s stock valued at $115,724,000 after buying an additional 554,403 shares during the period. Eqis Capital Management Inc. raised its stake in TE Connectivity by 116.7% in the second quarter. Eqis Capital Management Inc. now owns 7,086 shares of the electronics maker’s stock valued at $558,000 after buying an additional 3,816 shares during the period. First Manhattan Co. raised its stake in TE Connectivity by 18.1% in the first quarter. First Manhattan Co. now owns 3,918 shares of the electronics maker’s stock valued at $252,000 after buying an additional 600 shares during the period. Toronto Dominion Bank raised its stake in TE Connectivity by 56.5% in the first quarter. Toronto Dominion Bank now owns 95,909 shares of the electronics maker’s stock valued at $7,149,000 after buying an additional 34,630 shares during the period. Finally, Fiduciary Management Inc. WI raised its stake in TE Connectivity by 3.6% in the first quarter. Fiduciary Management Inc. WI now owns 9,616,782 shares of the electronics maker’s stock valued at $716,931,000 after buying an additional 331,080 shares during the period. 90.37% of the stock is owned by institutional investors and hedge funds.
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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