Daiwa Securities Group Inc. Buys 8,825 Shares of TE Connectivity Ltd. $TEL

Key Points

• Daiwa Securities Group increased its TE Connectivity stake by 13.1% in the fourth quarter, buying 8,825 additional shares and bringing its total holding to 76,366 shares worth about $17.4 million.
• TE Connectivity reported better-than-expected quarterly results, with EPS of $2.73 and revenue of $4.74 billion, while revenue rose 14.4% year over year.
• The company also raised its dividend to $0.78 per share quarterly and authorized a $3 billion share buyback program, signaling confidence in its financial position.

Daiwa Securities Group Inc. boosted its stake in shares of TE Connectivity Ltd. (NYSE:TEL - Free Report) by 13.1% in the fourth quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 76,366 shares of the electronics maker's stock after purchasing an additional 8,825 shares during the quarter. Daiwa Securities Group Inc.'s holdings in TE Connectivity were worth $17,374,000 at the end of the most recent reporting period.

A number of other institutional investors also recently modified their holdings of the business. Vanguard Group Inc. boosted its position in shares of TE Connectivity by 0.4% in 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 acquiring an additional 168,142 shares during the period. State Street Corp boosted its position in shares of TE Connectivity by 0.8% in 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 acquiring an additional 100,194 shares during the period. Geode Capital Management LLC boosted its position in shares of TE Connectivity by 2.6% in 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 acquiring an additional 161,967 shares during the period. Bank of America Corp DE boosted its position in shares of TE Connectivity by 27.5% in 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 acquiring an additional 1,352,152 shares during the period. Finally, Bank of New York Mellon Corp boosted its position in shares of TE Connectivity by 3.4% in 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 acquiring an additional 144,353 shares during the period. Institutional investors own 91.43% of the company's stock.

TE Connectivity Stock Down 3.6%

TEL stock opened at $212.70 on Friday. The company has a market cap of $62.09 billion, a PE ratio of 21.73, a price-to-earnings-growth ratio of 1.56 and a beta of 1.16. The business has a 50-day simple moving average of $214.26 and a 200 day simple moving average of $221.29. TE Connectivity Ltd. has a 52 week low of $162.17 and a 52 week high of $252.56. The company has a quick ratio of 1.20, a current ratio of 1.89 and a debt-to-equity ratio of 0.42.

TE Connectivity (NYSE:TEL - Get Free Report) last posted its quarterly earnings results on Wednesday, April 22nd. The electronics maker reported $2.73 EPS for the quarter, beating analysts' consensus estimates of $2.70 by $0.03. The business 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%.TE Connectivity's revenue for the quarter was up 14.4% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $2.10 earnings per share. TE Connectivity has set its Q3 2026 guidance at 2.830-2.830 EPS. Sell-side analysts anticipate that TE Connectivity Ltd. will post 11.28 EPS for the current fiscal year.

TE Connectivity Increases Dividend

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

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

Analyst Upgrades and Downgrades

TEL has been the subject of a number of recent research reports. UBS Group reduced their target price on shares of TE Connectivity from $272.00 to $261.00 and set a "buy" rating for the company in a research report on Thursday, April 23rd. Oppenheimer boosted their target price 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. Barclays reduced their target price on shares of TE Connectivity from $302.00 to $297.00 and set an "overweight" rating for the company in a research report on Thursday, April 23rd. 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. Finally, Jefferies Financial Group raised TE Connectivity from a "hold" rating to a "strong-buy" rating in a research note on Wednesday, April 15th. Two equities research analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating and five have issued a Hold rating to the company. According to data from MarketBeat, TE Connectivity has an average rating of "Moderate Buy" and an average price target of $256.57.

Insider Buying and Selling

In other TE Connectivity news, insider Shadrak W. Kroeger sold 9,400 shares of the business's stock in a transaction dated Monday, June 1st. The stock was sold at an average price of $215.00, for a total transaction of $2,021,000.00. Following the completion of the transaction, the insider owned 25,976 shares of the company's stock, 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 legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 28,200 shares of company stock worth $6,140,644 over the last three months. 0.60% of the stock is currently owned by insiders.

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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