Barclays Upgrades TE Connectivity (NYSE:TEL) to "Strong-Buy"

Key Points

• Barclays has upgraded TE Connectivity to a "strong-buy" rating, signaling strong confidence in the company's future performance.
• TE Connectivity's stock saw price target increases from several analysts, with Truist Financial raising it from $156 to $200 and UBS Group from $240 to $260.
• Despite a positive earnings report, where TE Connectivity surpassed EPS and revenue expectations, significant insider selling occurred, with executives selling over 124,000 shares in the past 90 days.

TE Connectivity (NYSE:TEL - Get Free Report) was upgraded by stock analysts at Barclays to a "strong-buy" rating in a research note issued to investors on Tuesday,Zacks.com reports.

A number of other equities research analysts have also recently issued reports on the stock. Truist Financial upped their price objective on shares of TE Connectivity from $156.00 to $200.00 and gave the company a "hold" rating in a research note on Thursday, July 24th. UBS Group upped their price target on shares of TE Connectivity from $240.00 to $260.00 and gave the company a "buy" rating in a research report on Monday. KGI Securities raised TE Connectivity to a "hold" rating in a research note on Thursday, July 24th. Bank of America lifted their price target on TE Connectivity from $168.00 to $190.00 and gave the stock a "buy" rating in a research note on Thursday, July 10th. Finally, Citigroup raised their price target on shares of TE Connectivity from $230.00 to $250.00 and gave the stock a "buy" rating in a report on Wednesday, September 24th. Two investment analysts have rated the stock with a Strong Buy rating, eight have given a Buy rating and six have given a Hold rating to the company. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $219.42.

TE Connectivity Price Performance

TEL opened at $224.43 on Tuesday. The company has a current ratio of 1.52, a quick ratio of 0.96 and a debt-to-equity ratio of 0.39. The stock has a market capitalization of $66.31 billion, a P/E ratio of 46.47, a PEG ratio of 2.40 and a beta of 1.26. The stock has a 50-day moving average price of $209.81 and a 200-day moving average price of $176.12. TE Connectivity has a 12-month low of $116.30 and a 12-month high of $225.27.

TE Connectivity (NYSE:TEL - Get Free Report) last released its earnings results on Wednesday, July 23rd. The electronics maker reported $2.27 earnings per share for the quarter, topping analysts' consensus estimates of $2.08 by $0.19. The company had revenue of $4.53 billion during the quarter, compared to the consensus estimate of $4.30 billion. TE Connectivity had a return on equity of 20.22% and a net margin of 8.78%.TE Connectivity's quarterly revenue was up 13.9% compared to the same quarter last year. During the same quarter in the previous year, the company posted $1.91 EPS. TE Connectivity has set its Q4 2025 guidance at 2.270-2.270 EPS. Equities analysts predict that TE Connectivity will post 8.05 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, insider Shadrak W. Kroeger sold 23,850 shares of the company's stock in a transaction dated Tuesday, September 2nd. The shares were sold at an average price of $202.99, for a total value of $4,841,311.50. Following the transaction, the insider owned 25,976 shares in the company, valued at $5,272,868.24. The trade was a 47.87% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, EVP John S. Jenkins sold 45,850 shares of the firm's stock in a transaction dated Monday, July 28th. The shares were sold at an average price of $209.33, for a total transaction of $9,597,780.50. Following the sale, the executive vice president owned 24,625 shares of the company's stock, valued at approximately $5,154,751.25. This represents a 65.06% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 124,545 shares of company stock worth $25,040,158 in the last 90 days. 0.90% of the stock is owned by company insiders.

Hedge Funds Weigh In On TE Connectivity

A number of hedge funds have recently bought and sold shares of TEL. Foresight Group Ltd Liability Partnership purchased a new stake in TE Connectivity in the first quarter worth approximately $31,983,000. Cambridge Investment Research Advisors Inc. lifted its holdings in TE Connectivity by 1.1% in the first quarter. Cambridge Investment Research Advisors Inc. now owns 17,540 shares of the electronics maker's stock valued at $2,479,000 after acquiring an additional 192 shares during the period. Ascent Group LLC purchased a new position in TE Connectivity in the first quarter worth about $364,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its position in shares of TE Connectivity by 7.7% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 2,719,610 shares of the electronics maker's stock valued at $384,335,000 after purchasing an additional 193,580 shares during the last quarter. Finally, Modern Wealth Management LLC bought a new position in shares of TE Connectivity in the 1st quarter worth approximately $310,000. Hedge funds and other institutional investors own 91.43% of the company's stock.

About TE Connectivity

TE Connectivity Ltd., together with its subsidiaries, manufactures and sells connectivity and sensor 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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