Capital International Investors Has $705.84 Million Stock Position in TE Connectivity Ltd. $TEL

Key Points

• Capital International Investors increased its TE Connectivity stake by 18% in the fourth quarter, buying 473,690 more shares and ending with 3.1 million shares valued at about $705.8 million.
• TE Connectivity reported better-than-expected quarterly results, with EPS of $2.73 beating estimates and revenue of $4.74 billion topping forecasts, while sales rose 14.4% year over year.
• The company boosted its quarterly dividend to $0.78 per share and authorized a $3 billion share repurchase program, signaling confidence in its valuation and cash generation.

Capital International Investors raised its position in shares of TE Connectivity Ltd. (NYSE:TEL - Free Report) by 18.0% in the 4th quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 3,100,444 shares of the electronics maker's stock after purchasing an additional 473,690 shares during the period. Capital International Investors owned approximately 1.06% of TE Connectivity worth $705,835,000 at the end of the most recent reporting period.

Several other institutional investors have also added to or reduced their stakes in the company. Vanguard Group Inc. raised its position in TE Connectivity by 0.4% during the fourth quarter. Vanguard Group Inc. now owns 38,421,283 shares of the electronics maker's stock valued at $8,741,226,000 after purchasing an additional 168,142 shares in the last quarter. State Street Corp raised its position in TE Connectivity by 0.8% during the third quarter. State Street Corp now owns 13,028,927 shares of the electronics maker's stock valued at $2,860,244,000 after purchasing an additional 100,194 shares in the last quarter. Geode Capital Management LLC raised its position in TE Connectivity by 2.6% during the fourth quarter. Geode Capital Management LLC now owns 6,284,933 shares of the electronics maker's stock valued at $1,425,669,000 after purchasing an additional 161,967 shares in the last quarter. Bank of America Corp DE raised its position in TE Connectivity by 27.5% during the second quarter. Bank of America Corp DE now owns 6,274,917 shares of the electronics maker's stock valued at $1,058,390,000 after purchasing an additional 1,352,152 shares in the last quarter. Finally, Bank of New York Mellon Corp raised its position in TE Connectivity by 3.4% during the fourth quarter. Bank of New York Mellon Corp now owns 4,403,794 shares of the electronics maker's stock valued at $1,001,907,000 after purchasing an additional 144,353 shares in the last quarter. 91.43% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

Several research analysts have commented on TEL shares. Oppenheimer boosted their price objective on shares of TE Connectivity from $270.00 to $285.00 and gave the company an "outperform" rating in a research report on Friday, February 13th. UBS Group decreased their target price on shares of TE Connectivity from $272.00 to $261.00 and set a "buy" rating on the stock in a research note on Thursday, April 23rd. Zacks Research raised shares of TE Connectivity from a "hold" rating to a "strong-buy" rating in a research note on Monday, April 27th. Barclays decreased their target price on shares of TE Connectivity from $302.00 to $297.00 and set an "overweight" rating on the stock in a research note on Thursday, April 23rd. Finally, Wells Fargo & Company boosted their target price on shares of TE Connectivity from $214.00 to $226.00 and gave the stock an "equal weight" rating in a research note on Thursday, April 23rd. Two analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating and five have assigned a Hold rating to the stock. According to MarketBeat, TE Connectivity presently has an average rating of "Moderate Buy" and a consensus target price of $256.57.

TE Connectivity Price Performance

Shares of NYSE:TEL opened at $212.70 on Monday. The firm has a market cap of $62.09 billion, a PE ratio of 21.73, a price-to-earnings-growth ratio of 1.51 and a beta of 1.16. The firm's fifty day moving average is $214.26 and its 200-day moving average is $221.20. The company has a debt-to-equity ratio of 0.42, a quick ratio of 1.20 and a current ratio of 1.89. TE Connectivity Ltd. has a 52 week low of $162.17 and a 52 week high of $252.56.

TE Connectivity (NYSE:TEL - Get Free Report) last issued its quarterly earnings results on Wednesday, April 22nd. The electronics maker reported $2.73 EPS for the quarter, topping analysts' consensus estimates of $2.70 by $0.03. The company had revenue of $4.74 billion for the quarter, compared to analyst estimates of $4.72 billion. TE Connectivity had a net margin of 15.54% and a return on equity of 23.56%. TE Connectivity's revenue was up 14.4% compared to the same quarter last year. During the same quarter in the previous year, the business earned $2.10 earnings per share. TE Connectivity has set its Q3 2026 guidance at 2.830-2.830 EPS. Sell-side analysts predict that TE Connectivity Ltd. will post 11.28 earnings per share for the current year.

TE Connectivity Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, June 12th. Stockholders of record on Friday, May 22nd will be issued a dividend of $0.78 per share. This represents a $3.12 dividend on an annualized basis and a dividend yield of 1.5%. This is a boost from TE Connectivity's previous quarterly dividend of $0.71. The ex-dividend date is Friday, May 22nd. TE Connectivity's dividend payout ratio (DPR) is presently 31.87%.

TE Connectivity declared that its Board of Directors has approved a share repurchase program on Wednesday, March 11th that allows the company to buyback $3.00 billion in outstanding shares. This buyback authorization allows the electronics maker to reacquire up to 5% of its stock through open market purchases. Stock buyback programs are usually an indication that the company's board believes its shares are undervalued.

Insider Activity at TE Connectivity

In other news, insider Shadrak W. Kroeger sold 9,400 shares of TE Connectivity stock in a transaction on 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 transaction, the insider owned 25,976 shares in the company, valued at approximately $5,584,840. The trade was a 26.57% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 28,200 shares of company stock worth $6,140,644 in the last quarter. 0.60% of the stock is currently owned by insiders.

TE Connectivity 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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