TE Connectivity Ltd. $TEL Holdings Lowered by Pzena Investment Management LLC

Key Points

• Pzena Investment Management cut its TE Connectivity stake by 25.6% in the first quarter, selling 207,913 shares and leaving it with 603,978 shares worth about $126.2 million.
• TE Connectivity reported better-than-expected quarterly results, posting EPS of $2.73 vs. $2.70 expected and revenue of $4.74 billion, with revenue up 14.4% year over year.
• The company announced a $3 billion share buyback and a quarterly dividend of $0.78 per share, while analysts currently rate the stock a consensus Moderate Buy with a target price of $254.93.

Pzena Investment Management LLC lowered its stake in TE Connectivity Ltd. (NYSE:TEL - Free Report) by 25.6% during the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 603,978 shares of the electronics maker's stock after selling 207,913 shares during the quarter. Pzena Investment Management LLC owned approximately 0.21% of TE Connectivity worth $126,243,000 as of its most recent filing with the Securities and Exchange Commission.

Other hedge funds also recently bought and sold shares of the company. Vanguard Group Inc. grew its position in TE Connectivity by 0.4% during the 4th quarter. Vanguard Group Inc. now owns 38,421,283 shares of the electronics maker's stock worth $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 0.6% during the fourth quarter. State Street Corp now owns 13,105,219 shares of the electronics maker's stock valued at $2,981,572,000 after acquiring an additional 76,292 shares in the last quarter. Geode Capital Management LLC lifted its stake in 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 last quarter. Bank of America Corp DE lifted its stake in 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 last quarter. Finally, Bank of New York Mellon Corp grew its position in 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 worth $1,001,907,000 after acquiring an additional 144,353 shares in the last quarter. 91.43% of the stock is owned by hedge funds and other institutional investors.

TE Connectivity Price Performance

NYSE TEL opened at $201.58 on Thursday. The stock has a 50-day simple moving average of $209.30 and a 200 day simple moving average of $218.42. TE Connectivity Ltd. has a twelve month low of $169.50 and a twelve month high of $252.56. The stock has a market capitalization of $58.84 billion, a PE ratio of 20.59, a P/E/G ratio of 1.42 and a beta of 1.16. 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 (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 analysts' consensus estimates of $2.70 by $0.03. The firm had revenue of $4.74 billion for 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%.The company's revenue was up 14.4% on a year-over-year basis. During the same quarter last year, the firm posted $2.10 EPS. TE Connectivity has set its Q3 2026 guidance at 2.830-2.830 EPS. Research analysts anticipate that TE Connectivity Ltd. will post 11.31 EPS for the current year.

TE Connectivity declared that its Board of Directors has approved a share buyback plan on Wednesday, March 11th that authorizes the company to buyback $3.00 billion in shares. This buyback authorization authorizes 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 shares are undervalued.

TE Connectivity Dividend Announcement

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

Insiders Place Their Bets

In other TE Connectivity news, insider Shadrak W. Kroeger sold 9,400 shares of the stock in a transaction on Monday, June 1st. The shares were sold at an average price of $215.00, for a total value of $2,021,000.00. Following the completion of the sale, 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 position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 28,200 shares of company stock valued at $6,140,644. 0.60% of the stock is owned by corporate insiders.

Wall Street Analyst Weigh In

TEL has been the subject of a number of recent research reports. UBS Group decreased their price objective on shares of TE Connectivity from $272.00 to $261.00 and set a "buy" rating for the company in a report on Thursday, April 23rd. Jefferies Financial Group upgraded TE Connectivity from a "hold" rating to a "strong-buy" rating in a report on Wednesday, April 15th. Evercore reaffirmed an "in-line" rating and issued a $230.00 price target on shares of TE Connectivity in a research report on Monday, June 22nd. Zacks Research lowered TE Connectivity from a "strong-buy" rating to a "hold" rating in a report on Monday, June 8th. Finally, Truist Financial cut their price objective on TE Connectivity from $244.00 to $240.00 and set a "hold" rating on the stock in a research note on Thursday, April 23rd. One investment analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating and seven have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $254.93.

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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