Norges Bank Invests $938.71 Million in TE Connectivity Ltd. $TEL

Key Points

• Norges Bank disclosed a new position in TE Connectivity, buying 4.126 million shares valued at about $938.7 million and ending with 1.41% ownership of the company.
• TE Connectivity reported better-than-expected quarterly results, with EPS of $2.73 versus $2.70 expected and revenue of $4.74 billion, up 14.4% year over year. The company also raised its quarterly dividend to $0.78 per share from $0.71.
• The company announced a $3 billion share repurchase program, while analysts remain generally positive with a consensus Moderate Buy rating and an average price target of $256.57.

Norges Bank purchased a new position in shares of TE Connectivity Ltd. (NYSE:TEL - Free Report) during the fourth quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund purchased 4,126,000 shares of the electronics maker's stock, valued at approximately $938,706,000. Norges Bank owned 1.41% of TE Connectivity as of its most recent SEC filing.

A number of other institutional investors and hedge funds have also made changes to their positions in TEL. Brighton Jones LLC acquired a new position in shares of TE Connectivity during the fourth quarter worth about $820,000. Sivia Capital Partners LLC increased its stake in shares of TE Connectivity by 66.7% during the second quarter. Sivia Capital Partners LLC now owns 2,517 shares of the electronics maker's stock worth $425,000 after acquiring an additional 1,007 shares during the period. Walleye Capital LLC increased its stake in shares of TE Connectivity by 14.6% during the second quarter. Walleye Capital LLC now owns 2,688 shares of the electronics maker's stock worth $453,000 after acquiring an additional 343 shares during the period. Squarepoint Ops LLC increased its stake in shares of TE Connectivity by 1,214.0% during the second quarter. Squarepoint Ops LLC now owns 105,267 shares of the electronics maker's stock worth $17,755,000 after acquiring an additional 97,256 shares during the period. Finally, Ieq Capital LLC increased its stake in shares of TE Connectivity by 75.0% during the second quarter. Ieq Capital LLC now owns 23,284 shares of the electronics maker's stock worth $3,927,000 after acquiring an additional 9,980 shares during the period. 91.43% of the stock is currently owned by institutional investors and hedge funds.

TE Connectivity Stock Up 1.4%

Shares of NYSE TEL opened at $213.24 on Friday. TE Connectivity Ltd. has a 12-month low of $158.09 and a 12-month high of $252.56. The company has a market capitalization of $62.24 billion, a PE ratio of 21.78, a price-to-earnings-growth ratio of 1.51 and a beta of 1.18. The company has a debt-to-equity ratio of 0.42, a current ratio of 1.89 and a quick ratio of 1.20. The firm's 50-day moving average is $212.91 and its two-hundred day moving average is $222.25.

TE Connectivity (NYSE:TEL - Get Free Report) last announced its quarterly 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. TE Connectivity had a net margin of 15.54% and a return on equity of 23.56%. The company had revenue of $4.74 billion for the quarter, compared to the consensus estimate of $4.72 billion. During the same quarter in the prior year, the firm earned $2.10 earnings per share. The company's revenue for the quarter was up 14.4% compared to the same quarter last year. TE Connectivity has set its Q3 2026 guidance at 2.830-2.830 EPS. Equities analysts anticipate that TE Connectivity Ltd. will post 11.28 EPS for the current fiscal year.

TE Connectivity Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, June 12th. Shareholders of record on Friday, May 22nd will be issued a $0.78 dividend. This represents a $3.12 annualized dividend 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 of this dividend is Friday, May 22nd. TE Connectivity's payout ratio is currently 31.87%.

TE Connectivity declared that its Board of Directors has initiated a stock repurchase plan on Wednesday, March 11th that permits the company to buyback $3.00 billion in outstanding shares. This buyback authorization permits the electronics maker to reacquire up to 5% of its shares through open market purchases. Shares buyback plans are typically a sign that the company's board believes its stock is undervalued.

Analysts Set New Price Targets

A number of brokerages have recently issued reports on TEL. Wells Fargo & Company boosted their price target 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. Jefferies Financial Group upgraded shares of TE Connectivity from a "hold" rating to a "strong-buy" rating in a research report on Wednesday, April 15th. The Goldman Sachs Group set a $286.00 target price on shares of TE Connectivity in a research report on Wednesday, April 22nd. Oppenheimer upped their target price on shares of TE Connectivity from $270.00 to $285.00 and gave the stock an "outperform" rating in a research report on Friday, February 13th. Finally, Wall Street Zen lowered shares of TE Connectivity from a "strong-buy" rating to a "buy" rating in a research report on Saturday, May 2nd. Two investment 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 company's stock. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average price target of $256.57.

Insider Activity

In other TE Connectivity news, insider Shadrak W. Kroeger sold 9,400 shares of the company's stock in a transaction dated Wednesday, May 6th. The shares were sold at an average price of $215.00, for a total value of $2,021,000.00. Following the sale, the insider 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 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 valued at $6,211,332 over the last quarter. 0.60% of the stock is owned by corporate 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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