Capital World Investors Sells 535,168 Shares of TE Connectivity Ltd. $TEL

Key Points

• Capital World Investors cut its TE Connectivity stake by 45.3% in the fourth quarter, selling 535,168 shares and leaving it with 645,745 shares valued at about $146.9 million.
• TE Connectivity reported solid quarterly results, with EPS of $2.73 and revenue of $4.74 billion, both slightly ahead of estimates; revenue also rose 14.4% year over year.
• The company boosted its dividend to $0.78 per share and authorized a $3 billion share repurchase plan, while analysts currently maintain a consensus Moderate Buy rating.

Capital World Investors trimmed its position in TE Connectivity Ltd. (NYSE:TEL - Free Report) by 45.3% in the fourth quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 645,745 shares of the electronics maker's stock after selling 535,168 shares during the period. Capital World Investors owned approximately 0.22% of TE Connectivity worth $146,913,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also added to or reduced their stakes in TEL. Kohmann Bosshard Financial Services LLC bought a new stake in TE Connectivity in the 4th quarter valued at about $25,000. Caitlin John LLC bought a new stake in TE Connectivity during the 3rd quarter worth approximately $28,000. Aster Capital Management DIFC Ltd bought a new stake in TE Connectivity during the 3rd quarter worth approximately $29,000. Geneos Wealth Management Inc. increased its holdings in TE Connectivity by 189.6% during the 2nd quarter. Geneos Wealth Management Inc. now owns 194 shares of the electronics maker's stock worth $33,000 after purchasing an additional 127 shares in the last quarter. Finally, JFS Wealth Advisors LLC increased its holdings in TE Connectivity by 54.6% during the 4th quarter. JFS Wealth Advisors LLC now owns 184 shares of the electronics maker's stock worth $42,000 after purchasing an additional 65 shares in the last quarter. 91.43% of the stock is owned by institutional investors.

Insider Activity

In other news, insider Shadrak W. Kroeger sold 9,400 shares of the company's stock in a transaction that occurred on Monday, June 1st. The stock was sold at an average price of $215.00, for a total value of $2,021,000.00. Following the completion of the transaction, the insider directly owned 25,976 shares of the company's stock, valued at $5,584,840. This represents a 26.57% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 28,200 shares of company stock valued at $6,140,644 over the last three months. Corporate insiders own 0.60% of the company's stock.

TE Connectivity Stock Performance

TEL stock opened at $205.54 on Tuesday. The firm has a market cap of $60.00 billion, a PE ratio of 20.99, a P/E/G ratio of 1.51 and a beta of 1.16. The company has a quick ratio of 1.20, a current ratio of 1.89 and a debt-to-equity ratio of 0.42. The business has a 50 day moving average of $214.31 and a 200-day moving average of $221.02. TE Connectivity Ltd. has a 12-month low of $162.17 and a 12-month high of $252.56.

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

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

TE Connectivity Increases Dividend

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

Analyst Ratings Changes

A number of analysts have commented on the company. Oppenheimer boosted their price objective on TE Connectivity from $270.00 to $285.00 and gave the stock an "outperform" rating in a report on Friday, February 13th. UBS Group decreased their price objective on TE Connectivity from $272.00 to $261.00 and set a "buy" rating for the company in a report on Thursday, April 23rd. Wall Street Zen lowered TE Connectivity from a "strong-buy" rating to a "buy" rating in a report on Saturday, May 2nd. Weiss Ratings raised TE Connectivity from a "buy (b-)" rating to a "buy (b)" rating in a report on Wednesday, April 29th. Finally, Jefferies Financial Group raised TE Connectivity from a "hold" rating to a "strong-buy" rating in a report on Wednesday, April 15th. Two equities research analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating and five have assigned a Hold rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $256.57.

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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