TE Connectivity (NYSE:TEL) Cut to Hold at Zacks Research

Key Points

• TE Connectivity has been downgraded by Zacks Research from a strong-buy rating to a hold rating, reflecting changes in analyst outlook.
• Despite the downgrade, the stock has seen various target price increases from other analysts, with a consensus target price of $202.91 and an average rating of Moderate Buy.
• Insider trading activity showed significant sales, with executives selling over 124,000 shares in the last three months, indicating a potential shift in sentiment among insiders.

TE Connectivity (NYSE:TEL - Get Free Report) was downgraded by equities research analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a report released on Wednesday,Zacks.com reports.

Several other research analysts also recently weighed in on TEL. Robert W. Baird set a $232.00 target price on shares of TE Connectivity in a report on Wednesday, September 3rd. Wells Fargo & Company increased their price objective on shares of TE Connectivity from $198.00 to $215.00 and gave the company an "equal weight" rating in a report on Thursday. Bank of America increased their price objective on shares of TE Connectivity from $168.00 to $190.00 and gave the company a "buy" rating in a report on Thursday, July 10th. UBS Group increased their price objective on shares of TE Connectivity from $185.00 to $201.00 and gave the company a "buy" rating in a report on Monday, July 14th. Finally, Evercore ISI increased their price objective on shares of TE Connectivity from $200.00 to $225.00 and gave the company an "outperform" rating in a report on Tuesday, August 12th. One research analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating and five have assigned a Hold rating to the company's stock. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $202.91.

TE Connectivity Trading Down 0.7%

NYSE:TEL opened at $214.15 on Wednesday. The company has a debt-to-equity ratio of 0.39, a current ratio of 1.52 and a quick ratio of 0.96. The firm has a market capitalization of $63.28 billion, a price-to-earnings ratio of 44.34, a price-to-earnings-growth ratio of 2.56 and a beta of 1.23. TE Connectivity has a one year low of $116.30 and a one year high of $221.00. The business has a fifty day moving average price of $205.64 and a 200-day moving average price of $171.44.

TE Connectivity (NYSE:TEL - Get Free Report) last posted its quarterly earnings data on Wednesday, July 23rd. The electronics maker reported $2.27 EPS for the quarter, topping the consensus estimate of $2.08 by $0.19. The firm had revenue of $4.53 billion during the quarter, compared to analyst estimates of $4.30 billion. TE Connectivity had a return on equity of 20.22% and a net margin of 8.78%.TE Connectivity's revenue was up 13.9% on a year-over-year basis. During the same period in the prior year, the business posted $1.91 EPS. TE Connectivity has set its Q4 2025 guidance at 2.270-2.270 EPS. Sell-side analysts forecast that TE Connectivity will post 8.05 EPS for the current year.

Insider Activity at TE Connectivity

In other news, SVP Malavika Sagar sold 1,945 shares of the firm's stock in a transaction that occurred on Monday, July 28th. The shares were sold at an average price of $207.20, for a total transaction of $403,004.00. Following the transaction, the senior vice president directly owned 4,716 shares of the company's stock, valued at approximately $977,155.20. This trade represents a 29.20% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider Shadrak W. Kroeger sold 23,850 shares of the firm's stock in a transaction that occurred on Tuesday, September 2nd. The stock was sold at an average price of $202.99, for a total transaction of $4,841,311.50. Following the transaction, the insider directly owned 25,976 shares in the company, valued at approximately $5,272,868.24. This trade represents a 47.87% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders sold 124,545 shares of company stock valued at $25,040,158. 0.90% of the stock is owned by insiders.

Hedge Funds Weigh In On TE Connectivity

Several institutional investors have recently bought and sold shares of TEL. Vanguard Group Inc. increased its holdings in TE Connectivity by 17.0% during the first quarter. Vanguard Group Inc. now owns 37,881,410 shares of the electronics maker's stock valued at $5,353,401,000 after buying an additional 5,502,415 shares during the period. Norges Bank purchased a new position in TE Connectivity during the second quarter valued at approximately $609,158,000. Valeo Financial Advisors LLC increased its holdings in TE Connectivity by 39,846.0% during the second quarter. Valeo Financial Advisors LLC now owns 1,775,598 shares of the electronics maker's stock valued at $299,490,000 after buying an additional 1,771,153 shares during the period. Bank of America Corp DE increased its holdings in TE Connectivity by 27.5% during 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 buying an additional 1,352,152 shares during the period. Finally, Nuveen LLC purchased a new position in TE Connectivity during the first quarter valued at approximately $174,700,000. 91.43% of the stock is owned by hedge funds and other institutional investors.

About TE Connectivity

TE Connectivity Ltd., together with its subsidiaries, manufactures and sells connectivity and sensor solutions in Europe, the Middle East, Africa, the AsiaPacific, and the Americas. The company operates through three segments: Transportation Solutions, Industrial Solutions, and Communications Solutions.

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