TE Connectivity (NYSE:TEL) Sets New 52-Week High - Should You Buy?

Key Points

• TE Connectivity's stock reached a new 52-week high at $225.26, closing at $223.25 with a substantial trading volume of 1,694,590 shares.
• Analysts have varying outlooks on the stock, with Citigroup and UBS giving "buy" ratings and increasing their price targets to $250.00 and $260.00 respectively, while Zacks downgraded their rating to "hold."
• The company announced a quarterly dividend of $0.71, set to be paid on December 12, 2023, which reflects an annualized yield of 1.3% based on its payout ratio of 58.80%.

TE Connectivity Ltd. (NYSE:TEL - Get Free Report)'s stock price reached a new 52-week high on Tuesday . The company traded as high as $225.26 and last traded at $223.25, with a volume of 1694590 shares trading hands. The stock had previously closed at $220.84.

Wall Street Analyst Weigh In

TEL has been the subject of a number of recent analyst reports. Citigroup raised their price objective on shares of TE Connectivity from $230.00 to $250.00 and gave the stock a "buy" rating in a research note on Wednesday, September 24th. Wells Fargo & Company upped their price objective on shares of TE Connectivity from $198.00 to $215.00 and gave the company an "equal weight" rating in a research note on Thursday, September 25th. Zacks Research downgraded shares of TE Connectivity from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, September 24th. Weiss Ratings restated a "hold (c+)" rating on shares of TE Connectivity in a report on Saturday, September 27th. Finally, UBS Group increased their price objective on TE Connectivity from $240.00 to $260.00 and gave the stock a "buy" rating in a report on Monday. One analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating and six have assigned 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 $216.73.

TE Connectivity Stock Up 1.1%

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 $65.97 billion, a P/E ratio of 46.22, a price-to-earnings-growth ratio of 2.39 and a beta of 1.26. The business has a 50 day moving average price of $209.19 and a 200 day moving average price of $175.46.

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 (EPS) for the quarter, topping the consensus estimate of $2.08 by $0.19. The company had revenue of $4.53 billion for the quarter, compared to the consensus estimate of $4.30 billion. TE Connectivity had a net margin of 8.78% and a return on equity of 20.22%. The business's revenue was up 13.9% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $1.91 EPS. TE Connectivity has set its Q4 2025 guidance at 2.270-2.270 EPS. On average, analysts predict that TE Connectivity Ltd. will post 8.05 earnings per share for the current year.

TE Connectivity Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, December 12th. Shareholders of record on Friday, November 21st will be given a $0.71 dividend. The ex-dividend date is Friday, November 21st. This represents a $2.84 dividend on an annualized basis and a yield of 1.3%. TE Connectivity's payout ratio is 58.80%.

Insider Activity at TE Connectivity

In related news, insider Aaron Kyle Stucki sold 52,900 shares of the firm's stock in a transaction dated Wednesday, July 23rd. The stock was sold at an average price of $192.78, for a total value of $10,198,062.00. Following the transaction, the insider owned 23,667 shares in the company, valued at $4,562,524.26. This trade represents a 69.09% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, SVP Malavika Sagar sold 1,945 shares of the 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 completion of the transaction, the senior vice president owned 4,716 shares in the company, valued at $977,155.20. This represents a 29.20% 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. Insiders own 0.90% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of TEL. Vanguard Group Inc. boosted 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 worth $5,353,401,000 after purchasing an additional 5,502,415 shares during the last quarter. Norges Bank acquired a new position in TE Connectivity during the second quarter valued at approximately $609,158,000. Valeo Financial Advisors LLC grew its stake in TE Connectivity by 39,846.0% in 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 purchasing an additional 1,771,153 shares in the last quarter. Bank of America Corp DE raised its stake in shares of TE Connectivity by 27.5% during 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 first quarter valued at approximately $174,700,000. Institutional investors own 91.43% of the company's stock.

TE Connectivity Company Profile

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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