TE Connectivity Ltd. (NYSE:TEL) Receives Average Rating of "Moderate Buy" from Analysts

Key Points

• TE Connectivity received an average analyst rating of “Moderate Buy” from 17 firms, with 10 Buy and 2 Strong Buy ratings. The average 12-month price target is about $256.57.
• The company reported better-than-expected quarterly results, posting EPS of $2.73 versus the $2.70 estimate and revenue of $4.74 billion, up 14.4% year over year. It also raised its quarterly dividend to $0.78 per share and authorized a $3 billion share buyback.
• Recent activity included an insider sale by Shadrak W. Kroeger and continued heavy ownership by institutions, with 91.43% of shares held by hedge funds and other institutional investors. Several brokerages also adjusted their ratings and price targets in recent weeks.

TE Connectivity Ltd. (NYSE:TEL - Get Free Report) has been assigned an average rating of "Moderate Buy" from the seventeen ratings firms that are presently covering the company, Marketbeat.com reports. Five analysts have rated the stock with a hold recommendation, ten have given a buy recommendation and two have given a strong buy recommendation to the company. The average twelve-month price target among brokers that have issued a report on the stock in the last year is $256.5714.

TEL has been the topic of several recent research reports. HSBC downgraded shares of TE Connectivity from a "buy" rating to a "hold" rating and set a $234.00 target price on the stock. in a research note on Thursday, April 23rd. Barclays dropped their price objective on shares of TE Connectivity from $302.00 to $297.00 and set an "overweight" rating on the stock in a research report on Thursday, April 23rd. Jefferies Financial Group raised shares of TE Connectivity from a "hold" rating to a "strong-buy" rating in a research report on Wednesday, April 15th. Wall Street Zen downgraded shares of TE Connectivity from a "strong-buy" rating to a "buy" rating in a research report on Saturday, May 2nd. Finally, Oppenheimer increased their price objective 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.

Insider Activity at TE Connectivity

In other TE Connectivity news, insider Shadrak W. Kroeger sold 9,400 shares of the stock in a transaction that occurred on 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 directly owned 25,976 shares of the company's stock, valued at approximately $5,584,840. This represents a 26.57% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 28,200 shares of company stock valued at $6,211,332. Corporate insiders own 0.60% of the company's stock.

Institutional Investors Weigh In On TE Connectivity

Large investors have recently modified their holdings of the company. Vanguard Group Inc. boosted its holdings in shares of TE Connectivity by 0.4% in the 4th quarter. Vanguard Group Inc. now owns 38,421,283 shares of the electronics maker's stock valued at $8,741,226,000 after buying an additional 168,142 shares in the last quarter. State Street Corp boosted its holdings in shares of TE Connectivity by 0.6% in the 4th quarter. State Street Corp now owns 13,105,219 shares of the electronics maker's stock valued at $2,981,572,000 after buying an additional 76,292 shares in the last quarter. Geode Capital Management LLC boosted its holdings in shares of TE Connectivity by 2.6% in the 4th quarter. Geode Capital Management LLC now owns 6,284,933 shares of the electronics maker's stock valued at $1,425,669,000 after buying an additional 161,967 shares in the last quarter. Bank of America Corp DE boosted its holdings in shares of 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 valued at $1,058,390,000 after buying an additional 1,352,152 shares in the last quarter. Finally, Bank of New York Mellon Corp boosted its holdings in shares of TE Connectivity by 3.4% in the 4th 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 buying 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

Shares of TEL opened at $202.83 on Friday. TE Connectivity has a fifty-two week low of $155.37 and a fifty-two week high of $252.56. The firm's 50 day moving average price is $212.04 and its 200 day moving average price is $223.50. The company has a market cap of $59.21 billion, a P/E ratio of 20.72, a PEG ratio of 1.44 and a beta of 1.18. 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 announced its earnings results 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. TE Connectivity had a net margin of 15.54% and a return on equity of 23.56%. The firm had revenue of $4.74 billion for the quarter, compared to the consensus estimate of $4.72 billion. During the same period in the prior year, the firm earned $2.10 EPS. The firm's revenue for the quarter was up 14.4% on a year-over-year basis. TE Connectivity has set its Q3 2026 guidance at 2.830-2.830 EPS. On average, research analysts forecast that TE Connectivity will post 11.28 earnings per share for the current fiscal year.

TE Connectivity announced that its Board of Directors has approved a share buyback 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 repurchase up to 5% of its shares through open market purchases. Shares repurchase plans are generally an indication that the company's management believes its stock is undervalued.

TE Connectivity Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, June 12th. Shareholders of record on Friday, May 22nd will be given a $0.78 dividend. The ex-dividend date of this dividend is Friday, May 22nd. This represents a $3.12 dividend on an annualized basis and a dividend yield of 1.5%. This is a boost from TE Connectivity's previous quarterly dividend of $0.71. TE Connectivity's payout ratio is currently 29.01%.

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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