TE Connectivity (NYSE:TEL) to Repurchase $3.00 billion in Shares

Key Points

• $3.00 billion share repurchase authorized by TE Connectivity's board, permitting buybacks of up to 5% of outstanding shares, a move that typically signals the board views the stock as undervalued.
• TE beat quarterly expectations with EPS of $2.72 (vs. $2.55) and revenue of $4.67B, up 21.7% year-over-year, and set Q2 2026 guidance at $2.65 EPS; analysts have raised ratings and the consensus is a "Moderate Buy" with an average price target near $251.93.
• The company declared a $0.71 quarterly dividend (1.4% yield) and the stock trades near $205 with a market cap of about $60.2B and a P/E around 29.6, while insiders have recently sold shares and collectively own ~0.6%.

TE Connectivity (NYSE:TEL - Get Free Report) announced that its Board of Directors has authorized a share repurchase plan on Wednesday, March 11th, RTT News reports. The company plans to repurchase $3.00 billion in outstanding shares. This repurchase authorization permits the electronics maker to purchase up to 5% of its stock through open market purchases. Stock repurchase plans are generally a sign that the company's board of directors believes its stock is undervalued.

TE Connectivity Stock Performance

TEL stock traded up $2.36 during mid-day trading on Wednesday, hitting $205.31. 1,572,757 shares of the company were exchanged, compared to its average volume of 2,218,265. TE Connectivity has a 1-year low of $116.30 and a 1-year high of $250.67. The stock has a market capitalization of $60.24 billion, a PE ratio of 29.63, a price-to-earnings-growth ratio of 1.54 and a beta of 1.23. The business has a 50 day simple moving average of $226.80 and a 200-day simple moving average of $225.92. The company has a current ratio of 1.65, a quick ratio of 1.07 and a debt-to-equity ratio of 0.37.

TE Connectivity (NYSE:TEL - Get Free Report) last posted its earnings results on Wednesday, January 21st. The electronics maker reported $2.72 EPS for the quarter, beating the consensus estimate of $2.55 by $0.17. The company had revenue of $4.67 billion for the quarter, compared to the consensus estimate of $4.52 billion. TE Connectivity had a return on equity of 22.72% and a net margin of 11.41%.The firm's revenue for the quarter was up 21.7% on a year-over-year basis. During the same quarter in the prior year, the business earned $1.95 earnings per share. TE Connectivity has set its Q2 2026 guidance at 2.650-2.650 EPS. On average, equities analysts forecast that TE Connectivity will post 8.05 earnings per share for the current year.

TE Connectivity Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, March 13th. Shareholders of record on Friday, February 20th will be paid a $0.71 dividend. The ex-dividend date is Friday, February 20th. This represents a $2.84 annualized dividend and a yield of 1.4%. TE Connectivity's payout ratio is 40.98%.

Analyst Ratings Changes

A number of research firms recently issued reports on TEL. Barclays increased their price objective on TE Connectivity from $297.00 to $302.00 and gave the stock an "overweight" rating in a report on Friday, January 23rd. UBS Group upped their price target on TE Connectivity from $280.00 to $283.00 and gave the stock a "buy" rating in a research report on Wednesday, January 14th. Weiss Ratings raised shares of TE Connectivity from a "hold (c+)" rating to a "buy (b)" rating in a research note on Friday, February 6th. Wall Street Zen raised shares of TE Connectivity from a "buy" rating to a "strong-buy" rating in a research report on Sunday, January 11th. Finally, Zacks Research upgraded shares of TE Connectivity from a "hold" rating to a "strong-buy" rating in a report on Wednesday, January 28th. One equities research analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and four have given a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $251.93.

Insider Buying and Selling at TE Connectivity

In related news, insider Shadrak W. Kroeger sold 9,400 shares of the business's stock in a transaction that occurred on Monday, March 2nd. The stock was sold at an average price of $222.52, for a total value of $2,091,688.00. Following the completion of the sale, the insider directly owned 25,976 shares in the company, valued at approximately $5,780,179.52. The trade was a 26.57% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, SVP Reuben M. Shaffer sold 1,425 shares of the stock in a transaction that occurred on Friday, February 13th. The stock was sold at an average price of $234.23, for a total value of $333,777.75. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 32,945 shares of company stock valued at $7,528,616 in the last quarter. Company insiders own 0.60% of the company's stock.

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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