Hsbc Holdings PLC Acquires 885,658 Shares of TE Connectivity Ltd. $TEL

Key Points

• HSBC Holdings PLC significantly increased its stake in TE Connectivity, buying 885,658 additional shares in Q1 and lifting its holdings by 385% to 1,115,692 shares worth about $232.7 million.
• TE Connectivity reported better-than-expected quarterly results, with EPS of $2.73 and revenue of $4.74 billion, both slightly ahead of analyst estimates, while revenue rose 14.4% year over year.
• The company also announced a quarterly dividend of $0.78 per share, implying an annualized payout of $3.12 and a dividend yield of about 1.5%.

Hsbc Holdings PLC boosted its holdings in TE Connectivity Ltd. (NYSE:TEL - Free Report) by 385.0% in the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 1,115,692 shares of the electronics maker's stock after buying an additional 885,658 shares during the period. Hsbc Holdings PLC owned approximately 0.38% of TE Connectivity worth $232,677,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds and other institutional investors have also bought and sold shares of TEL. Norges Bank bought a new position in shares of TE Connectivity in the fourth quarter worth $938,706,000. J. Stern & Co. LLP purchased a new stake in TE Connectivity during the 4th quarter worth about $445,402,000. Arrowstreet Capital Limited Partnership lifted its holdings in TE Connectivity by 124.4% during the 4th quarter. Arrowstreet Capital Limited Partnership now owns 3,105,167 shares of the electronics maker's stock worth $706,457,000 after purchasing an additional 1,721,235 shares in the last quarter. Bank of America Corp DE boosted its stake in TE Connectivity by 27.5% in the 2nd quarter. Bank of America Corp DE now owns 6,274,917 shares of the electronics maker's stock worth $1,058,390,000 after purchasing an additional 1,352,152 shares during the period. Finally, Robeco Institutional Asset Management B.V. boosted its stake in TE Connectivity by 183.6% in the 4th quarter. Robeco Institutional Asset Management B.V. now owns 1,530,414 shares of the electronics maker's stock worth $348,184,000 after purchasing an additional 990,703 shares during the period. Institutional investors own 91.43% of the company's stock.

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 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 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. Company insiders own 0.60% of the company's stock.

TE Connectivity Stock Performance

NYSE:TEL opened at $203.22 on Friday. TE Connectivity Ltd. has a twelve month low of $177.21 and a twelve month 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. The stock has a market cap of $59.32 billion, a P/E ratio of 20.76, a PEG ratio of 1.43 and a beta of 1.17. The business's 50-day moving average price is $205.86 and its two-hundred day moving average price is $215.96.

TE Connectivity (NYSE:TEL - Get Free Report) last posted its quarterly earnings data on Wednesday, April 22nd. The electronics maker reported $2.73 earnings per share for the quarter, topping the consensus estimate of $2.70 by $0.03. The company had revenue of $4.74 billion for the quarter, compared to analysts' expectations 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 for the quarter was up 14.4% compared to the same quarter last year. During the same period in the prior year, the business earned $2.10 earnings per share. TE Connectivity has set its Q3 2026 guidance at 2.830-2.830 EPS. As a group, equities analysts predict that TE Connectivity Ltd. will post 11.31 EPS for the current fiscal year.

TE Connectivity Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, September 11th. Stockholders of record on Friday, August 21st will be issued a $0.78 dividend. The ex-dividend date of this dividend is Friday, August 21st. This represents a $3.12 dividend on an annualized basis and a dividend yield of 1.5%. TE Connectivity's dividend payout ratio is presently 31.87%.

Wall Street Analyst Weigh In

TEL has been the topic of several analyst reports. Jefferies Financial Group upgraded TE Connectivity from a "hold" rating to a "strong-buy" rating in a research report on Wednesday, April 15th. Wall Street Zen cut shares of TE Connectivity from a "buy" rating to a "hold" rating in a research note on Sunday, July 12th. Zacks Research lowered shares of TE Connectivity from a "strong-buy" rating to a "hold" rating in a report on Monday, June 8th. Barclays increased their target price 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. Finally, Weiss Ratings raised shares of TE Connectivity from a "buy (b-)" rating to a "buy (b)" rating in a report on Wednesday, April 29th. One equities research analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating and seven have assigned a Hold rating to the company. According to data from MarketBeat.com, TE Connectivity currently has a consensus rating of "Moderate Buy" and an average price target of $255.31.

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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