TE Connectivity (NYSE:TEL) Upgraded at Jefferies Financial Group

Key Points

• Jefferies upgraded TE Connectivity from "hold" to "strong-buy," helping sustain an overall consensus of "Moderate Buy" with a $246.33 average price target (1 Strong Buy, 12 Buy, 5 Hold).
• TE Connectivity beat Q1 estimates with EPS $2.72 vs. $2.55 and revenue $4.67B (+21.7% YoY), set Q2 guidance at 2.65 EPS and announced a $3.0 billion share buyback authorizing repurchase of up to 5% of shares.
• The stock trades near $234.36 with a market cap of about $68.8B and a P/E of 33.8, and institutional investors own roughly 91% of the shares, including recent large purchases by Norges Bank and Arrowstreet.

TE Connectivity (NYSE:TEL - Get Free Report) was upgraded by investment analysts at Jefferies Financial Group from a "hold" rating to a "strong-buy" rating in a research note issued on Wednesday,Zacks.com reports.

Other research analysts have also recently issued research reports about the stock. Wells Fargo & Company cut their price objective on shares of TE Connectivity from $249.00 to $214.00 and set an "equal weight" rating for the company in a report on Tuesday, March 31st. Barclays lifted their price objective on shares of TE Connectivity from $297.00 to $302.00 and gave the company an "overweight" rating in a report on Friday, January 23rd. UBS Group set a $272.00 target price on shares of TE Connectivity in a research note on Tuesday. Truist Financial boosted their target price on shares of TE Connectivity from $240.00 to $244.00 and gave the stock a "hold" rating in a research note on Thursday, January 22nd. Finally, Wall Street Zen raised shares of TE Connectivity from a "buy" rating to a "strong-buy" rating in a research note on Sunday, January 11th. One analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating and five have given a Hold rating to the company. According to MarketBeat.com, TE Connectivity presently has an average rating of "Moderate Buy" and a consensus price target of $246.33.

TE Connectivity Stock Down 1.1%

TEL opened at $234.36 on Wednesday. TE Connectivity has a fifty-two week low of $125.42 and a fifty-two week high of $250.67. The company has a debt-to-equity ratio of 0.37, a quick ratio of 1.07 and a current ratio of 1.65. The company has a fifty day moving average of $216.84 and a two-hundred day moving average of $225.85. The stock has a market capitalization of $68.77 billion, a price-to-earnings ratio of 33.82, a PEG ratio of 1.72 and a beta of 1.26.

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

TE Connectivity announced that its board has approved a share repurchase program on Wednesday, March 11th that authorizes the company to buyback $3.00 billion in shares. This buyback authorization authorizes the electronics maker to reacquire up to 5% of its shares through open market purchases. Shares buyback programs are usually a sign that the company's leadership believes its shares are undervalued.

Insider Transactions at TE Connectivity

In related news, SVP Reuben M. Shaffer sold 1,425 shares of the business's stock in a transaction dated Friday, February 13th. The shares were sold at an average price of $234.23, for a total transaction of $333,777.75. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, EVP John S. Jenkins sold 6,155 shares of the business's stock in a transaction dated Monday, February 9th. The stock was sold at an average price of $222.81, for a total transaction of $1,371,395.55. Following the transaction, the executive vice president owned 21,810 shares in the company, valued at $4,859,486.10. The trade was a 22.01% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 42,345 shares of company stock valued at $9,627,260 over the last 90 days. Corporate insiders own 0.60% of the company's stock.

Hedge Funds Weigh In On TE Connectivity

A number of institutional investors and hedge funds have recently bought and sold shares of TEL. Norges Bank acquired a new position in TE Connectivity during the fourth quarter worth about $938,706,000. J. Stern & Co. LLP acquired a new position in TE Connectivity during the fourth quarter worth about $445,402,000. Arrowstreet Capital Limited Partnership boosted its position in TE Connectivity by 124.4% during the fourth quarter. Arrowstreet Capital Limited Partnership now owns 3,105,167 shares of the electronics maker's stock worth $706,457,000 after acquiring an additional 1,721,235 shares during the last quarter. Bank of America Corp DE boosted its position 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 worth $1,058,390,000 after acquiring an additional 1,352,152 shares during the last quarter. Finally, Robeco Institutional Asset Management B.V. boosted its position in TE Connectivity by 183.6% during the fourth quarter. Robeco Institutional Asset Management B.V. now owns 1,530,414 shares of the electronics maker's stock worth $348,184,000 after acquiring an additional 990,703 shares during the last quarter. 91.43% of the stock is currently owned by institutional investors and hedge funds.

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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