TE Connectivity (NYSE:TEL) Sets New 1-Year High - Here's Why

Key Points

• TE Connectivity Ltd. has reached a new 52-week high of $234.50 during recent trading, with analysts projecting significant growth potential for the stock.
• The company reported earnings of $2.27 per share for its last quarter, exceeding analysts' expectations, resulting in a 13.9% increase in year-over-year revenue.
• TE Connectivity has declared a quarterly dividend of $0.71 per share, which will be paid on December 12th, representing an annualized yield of 1.2%.

TE Connectivity Ltd. (NYSE:TEL - Get Free Report) reached a new 52-week high during trading on Wednesday . The stock traded as high as $234.50 and last traded at $228.39, with a volume of 2851691 shares traded. The stock had previously closed at $225.96.

Wall Street Analysts Forecast Growth

Several research firms recently commented on TEL. The Goldman Sachs Group lifted their price objective on TE Connectivity from $228.00 to $263.00 and gave the stock a "buy" rating in a report on Monday, September 29th. Evercore ISI lifted their price objective on TE Connectivity from $225.00 to $250.00 and gave the stock an "outperform" rating in a report on Monday. Bank of America lifted their price objective on TE Connectivity from $168.00 to $190.00 and gave the stock a "buy" rating in a report on Thursday, July 10th. Wall Street Zen cut TE Connectivity from a "strong-buy" rating to a "buy" rating in a research report on Sunday, August 31st. Finally, Barclays started coverage on TE Connectivity in a research report on Tuesday, October 7th. They issued an "overweight" rating and a $249.00 target price on the stock. Two analysts have rated the stock with a Strong Buy rating, eight have issued a Buy rating and six have issued a Hold rating to the company's stock. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $222.00.

TE Connectivity Price Performance

The firm has a market capitalization of $67.48 billion, a PE ratio of 47.29, a PEG ratio of 2.44 and a beta of 1.26. 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 50-day simple moving average of $213.47 and a 200-day simple moving average of $181.42.

TE Connectivity (NYSE:TEL - Get Free Report) last posted its quarterly earnings data on Wednesday, July 23rd. The electronics maker reported $2.27 earnings per share for the quarter, beating analysts' consensus estimates of $2.08 by $0.19. TE Connectivity had a return on equity of 20.22% and a net margin of 8.78%.The firm had revenue of $4.53 billion for the quarter, compared to analysts' expectations of $4.30 billion. During the same period in the previous year, the firm earned $1.91 EPS. The business's quarterly revenue was up 13.9% on a year-over-year basis. As a group, equities analysts forecast that TE Connectivity Ltd. will post 8.05 earnings per share for the current year.

TE Connectivity Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, December 12th. Stockholders of record on Friday, November 21st will be given a dividend of $0.71 per share. This represents a $2.84 dividend on an annualized basis and a dividend yield of 1.2%. The ex-dividend date of this dividend is Friday, November 21st. TE Connectivity's payout ratio is presently 58.80%.

Insider Activity

In other news, EVP John S. Jenkins sold 45,850 shares of TE Connectivity stock in a transaction dated Monday, July 28th. The stock was sold at an average price of $209.33, for a total transaction of $9,597,780.50. Following the transaction, the executive vice president directly owned 24,625 shares of the company's stock, valued at $5,154,751.25. The trade was a 65.06% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Shadrak W. Kroeger sold 23,850 shares of TE Connectivity stock in a transaction dated Tuesday, September 2nd. The shares were sold at an average price of $202.99, for a total value 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. The trade was a 47.87% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 71,645 shares of company stock valued at $14,842,096 in the last ninety days. Corporate insiders own 0.90% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in TEL. Vanguard Group Inc. lifted its holdings in TE Connectivity by 17.0% in the 1st quarter. Vanguard Group Inc. now owns 37,881,410 shares of the electronics maker's stock worth $5,353,401,000 after purchasing an additional 5,502,415 shares in the last quarter. Norges Bank purchased a new position in TE Connectivity in the 2nd quarter worth approximately $609,158,000. Valeo Financial Advisors LLC lifted its holdings in TE Connectivity by 39,846.0% in the 2nd quarter. Valeo Financial Advisors LLC now owns 1,775,598 shares of the electronics maker's stock worth $299,490,000 after purchasing an additional 1,771,153 shares in the last quarter. Bank of America Corp DE lifted its holdings in 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 worth $1,058,390,000 after purchasing an additional 1,352,152 shares in the last quarter. Finally, Nuveen LLC bought a new stake in TE Connectivity in the 1st quarter worth 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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