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

Key Points

• Analyst sentiment is positive overall: TE Connectivity has an average rating of “Moderate Buy” from 17 brokerages, with 10 buy ratings and one strong buy. The average 1-year price target is about $256.79.
• Recent earnings topped expectations: The company reported $2.73 EPS versus the $2.70 consensus and revenue of $4.74 billion, both slightly ahead of estimates. Revenue also rose 14.4% from the same quarter last year.
• TE Connectivity is rewarding shareholders: The board approved a $3 billion share buyback plan, and the company announced a quarterly dividend of $0.78 per share for a 1.5% annualized yield.

Shares of TE Connectivity Ltd. (NYSE:TEL - Get Free Report) have received an average recommendation of "Moderate Buy" from the seventeen research firms that are presently covering the firm, MarketBeat.com reports. Six analysts have rated the stock with a hold rating, ten have assigned a buy rating and one has assigned a strong buy rating to the company. The average 1 year target price among brokerages that have issued a report on the stock in the last year is $256.7857.

TEL has been the topic of a number of recent analyst reports. Wells Fargo & Company increased their price objective on TE Connectivity from $214.00 to $226.00 and gave the stock an "equal weight" rating in a research report on Thursday, April 23rd. Weiss Ratings upgraded TE Connectivity from a "buy (b-)" rating to a "buy (b)" rating in a research report on Wednesday, April 29th. Jefferies Financial Group upgraded TE Connectivity from a "hold" rating to a "strong-buy" rating in a research report on Wednesday, April 15th. UBS Group lowered their price objective on TE Connectivity from $272.00 to $261.00 and set a "buy" rating on the stock in a research report on Thursday, April 23rd. Finally, HSBC cut 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.

TE Connectivity Trading Down 2.4%

Shares of TEL stock opened at $211.73 on Thursday. 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 has a 52-week low of $162.17 and a 52-week high of $252.56. The company has a market capitalization of $61.80 billion, a PE ratio of 21.63, a price-to-earnings-growth ratio of 1.54 and a beta of 1.16. The business's fifty day moving average is $214.83 and its 200 day moving average is $220.44.

TE Connectivity (NYSE:TEL - Get Free Report) last issued its quarterly earnings data on Wednesday, April 22nd. The electronics maker reported $2.73 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.70 by $0.03. TE Connectivity had a return on equity of 23.56% and a net margin of 15.54%.The company had revenue of $4.74 billion for the quarter, compared to the consensus estimate of $4.72 billion. During the same quarter last year, the business posted $2.10 earnings per share. The firm's revenue 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. On average, equities research analysts anticipate that TE Connectivity will post 11.28 EPS for the current fiscal year.

TE Connectivity Announces Dividend

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

TE Connectivity declared that its board 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 reacquire up to 5% of its shares through open market purchases. Shares repurchase plans are usually an indication that the company's leadership believes its shares are undervalued.

Insider Buying and Selling

In related news, insider Shadrak W. Kroeger sold 9,400 shares of the stock in a transaction on Monday, June 1st. The stock was sold at an average price of $215.00, for a total value of $2,021,000.00. Following the transaction, 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 transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available 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 valued at $6,140,644 over the last quarter. 0.60% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of the stock. Gulf International Bank UK Ltd grew its stake in shares of TE Connectivity by 0.3% during the fourth quarter. Gulf International Bank UK Ltd now owns 14,999 shares of the electronics maker's stock valued at $3,412,000 after buying an additional 44 shares during the last quarter. MCF Advisors LLC grew its stake in shares of TE Connectivity by 14.1% in the fourth quarter. MCF Advisors LLC now owns 364 shares of the electronics maker's stock worth $83,000 after purchasing an additional 45 shares during the last quarter. Webster Bank N. A. grew its stake in shares of TE Connectivity by 19.1% in the fourth quarter. Webster Bank N. A. now owns 287 shares of the electronics maker's stock worth $65,000 after purchasing an additional 46 shares during the last quarter. CYBER HORNET ETFs LLC grew its stake in shares of TE Connectivity by 5.6% in the fourth quarter. CYBER HORNET ETFs LLC now owns 887 shares of the electronics maker's stock worth $202,000 after purchasing an additional 47 shares during the last quarter. Finally, Harbour Investments Inc. grew its stake in shares of TE Connectivity by 4.2% in the fourth quarter. Harbour Investments Inc. now owns 1,193 shares of the electronics maker's stock worth $271,000 after purchasing an additional 48 shares during the last quarter. 91.43% of the stock is owned by institutional investors.

About TE Connectivity

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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