Evercore Downgrades TE Connectivity (NYSE:TEL) to Hold

Key Points

• Evercore downgraded TE Connectivity from “strong-buy” to “hold,” adding to a mixed analyst backdrop that still leaves the stock with a consensus rating of Moderate Buy.
• TE Connectivity recently reported better-than-expected quarterly results, posting EPS of $2.73 versus $2.70 expected and revenue of $4.74 billion versus $4.72 billion expected, with revenue up 14.4% year over year.
• The company also has a $3 billion share repurchase program in place, though recent insider selling included a June 1 sale by Shadrak W. Kroeger of 9,400 shares at $215 each.

TE Connectivity (NYSE:TEL - Get Free Report) was downgraded by equities researchers at Evercore from a "strong-buy" rating to a "hold" rating in a research report issued to clients and investors on Sunday,Zacks.com reports.

A number of other equities analysts also recently weighed in on the stock. The Goldman Sachs Group set a $286.00 target price on shares of TE Connectivity in a report on Wednesday, April 22nd. Weiss Ratings raised shares of TE Connectivity from a "buy (b-)" rating to a "buy (b)" rating in a research report on Wednesday, April 29th. Barclays boosted their price objective on shares of TE Connectivity from $297.00 to $300.00 and gave the stock an "overweight" rating in a research note on Monday, June 15th. Wall Street Zen cut shares of TE Connectivity from a "strong-buy" rating to a "buy" rating in a report on Saturday, May 2nd. Finally, HSBC downgraded shares of TE Connectivity from a "buy" rating to a "hold" rating and set a $234.00 target price for the company. in a research note on Thursday, April 23rd. One equities research analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating and seven have assigned a Hold rating to the company's stock. According to MarketBeat.com, TE Connectivity presently has a consensus rating of "Moderate Buy" and a consensus target price of $254.64.

TE Connectivity Stock Performance

Shares of NYSE TEL opened at $212.74 on Friday. The stock has a 50 day moving average price of $214.56 and a 200 day moving average price of $220.21. TE Connectivity has a 52 week low of $162.17 and a 52 week high of $252.56. 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 capitalization of $62.10 billion, a PE ratio of 21.73, a price-to-earnings-growth ratio of 1.54 and a beta of 1.16.

TE Connectivity (NYSE:TEL - Get Free Report) last posted its quarterly 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 during the quarter, compared to the consensus estimate of $4.72 billion. TE Connectivity had a return on equity of 23.56% and a net margin of 15.54%.The business's revenue was up 14.4% compared to the same quarter last year. During the same period last year, the company earned $2.10 earnings per share. TE Connectivity has set its Q3 2026 guidance at 2.830-2.830 EPS. Analysts predict that TE Connectivity will post 11.28 earnings per share for the current fiscal year.

TE Connectivity declared that its board has approved a stock buyback plan on Wednesday, March 11th that authorizes the company to repurchase $3.00 billion in outstanding shares. This repurchase authorization authorizes the electronics maker to purchase up to 5% of its stock through open market purchases. Stock repurchase plans are typically an indication that the company's board of directors believes its shares are undervalued.

Insider Buying and Selling at TE Connectivity

In other news, insider Shadrak W. Kroeger sold 9,400 shares of the firm's stock in a transaction dated Monday, June 1st. The shares were sold at an average price of $215.00, for a total transaction of $2,021,000.00. Following the completion of the sale, the insider owned 25,976 shares in the company, valued at approximately $5,584,840. This trade represents a 26.57% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 28,200 shares of company stock valued at $6,140,644 over the last 90 days. 0.60% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the stock. Man Group plc boosted its position in shares of TE Connectivity by 259.9% during the 4th quarter. Man Group plc now owns 1,252,434 shares of the electronics maker's stock worth $284,941,000 after acquiring an additional 904,468 shares in the last quarter. Darwin Wealth Management LLC bought a new stake in TE Connectivity during the fourth quarter worth $1,983,000. Northwestern Mutual Wealth Management Co. lifted its stake in TE Connectivity by 2,766.7% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 277,270 shares of the electronics maker's stock worth $63,082,000 after purchasing an additional 267,598 shares during the last quarter. Power Wealth Management LLC boosted its holdings in shares of TE Connectivity by 226.5% in the 3rd quarter. Power Wealth Management LLC now owns 8,979 shares of the electronics maker's stock valued at $1,971,000 after purchasing an additional 6,229 shares in the last quarter. Finally, NewEdge Wealth LLC boosted its holdings in shares of TE Connectivity by 20.4% in the 4th quarter. NewEdge Wealth LLC now owns 41,715 shares of the electronics maker's stock valued at $9,491,000 after purchasing an additional 7,057 shares in the last quarter. 91.43% of the stock is owned by institutional investors.

TE Connectivity Company Profile

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.

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