TE Connectivity (NYSE:TEL) Upgraded by Zacks Research to "Strong-Buy" Rating

Key Points

• TE Connectivity was upgraded by Zacks Research from "hold" to "strong-buy," while analyst coverage overall remains a "Moderate Buy" (2 Strong Buy, 10 Buy, 5 Hold) with a consensus price target of $256.57.
• The company slightly beat Q1 estimates with $2.73 EPS versus $2.70 expected and $4.74B revenue versus $4.72B expected, with revenue up 14.4% year‑over‑year.
• The board authorized a $3.0 billion share buyback (up to ~5% of shares), even as insiders sold about $9.6M of stock over the last 90 days and institutional investors own roughly 91.4% of the company.

TE Connectivity (NYSE:TEL - Get Free Report) was upgraded by Zacks Research from a "hold" rating to a "strong-buy" rating in a research note issued to investors on Monday,Zacks.com reports.

TEL has been the subject of several other reports. Wells Fargo & Company upped their price objective on TE Connectivity from $214.00 to $226.00 and gave the stock an "equal weight" rating in a research note on Thursday, April 23rd. HSBC downgraded shares of TE Connectivity from a "buy" rating to a "hold" rating and set a $234.00 target price for the company. in a report on Thursday, April 23rd. Truist Financial dropped their target price on shares of TE Connectivity from $244.00 to $240.00 and set a "hold" rating for the company in a report on Thursday, April 23rd. Wall Street Zen raised shares of TE Connectivity from a "buy" rating to a "strong-buy" rating in a report on Sunday, January 11th. Finally, Oppenheimer upped their target price on shares of TE Connectivity from $270.00 to $285.00 and gave the stock an "outperform" rating in a report on Friday, February 13th. Two analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating and five have issued a Hold rating to the company's stock. According to data from MarketBeat.com, TE Connectivity currently has an average rating of "Moderate Buy" and a consensus price target of $256.57.

TE Connectivity Trading Down 2.3%

NYSE:TEL opened at $204.67 on Monday. The company has a debt-to-equity ratio of 0.42, a current ratio of 1.89 and a quick ratio of 1.20. The firm has a market capitalization of $60.06 billion, a price-to-earnings ratio of 20.91, a price-to-earnings-growth ratio of 1.48 and a beta of 1.26. TE Connectivity has a one year low of $142.45 and a one year high of $252.56. The business has a fifty day moving average price of $216.88 and a 200-day moving average price of $226.27.

TE Connectivity (NYSE:TEL - Get Free Report) last posted its quarterly earnings data on Wednesday, April 22nd. The electronics maker reported $2.73 EPS for the quarter, topping the consensus estimate of $2.70 by $0.03. The firm had revenue of $4.74 billion during the quarter, compared to analyst estimates of $4.72 billion. TE Connectivity had a return on equity of 23.56% and a net margin of 15.54%.TE Connectivity's revenue was up 14.4% on a year-over-year basis. During the same period in the prior year, the business posted $2.10 EPS. TE Connectivity has set its Q3 2026 guidance at 2.830-2.830 EPS. Sell-side analysts forecast that TE Connectivity will post 11.28 EPS for the current year.

TE Connectivity declared that its Board of Directors has authorized a share buyback plan on Wednesday, March 11th that permits the company to buyback $3.00 billion in shares. This buyback authorization permits the electronics maker to reacquire up to 5% of its stock through open market purchases. Stock buyback plans are usually an indication that the company's leadership believes its stock is undervalued.

Insider Activity

In other news, EVP John S. Jenkins sold 6,155 shares of the firm'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 completion of the transaction, the executive vice president owned 21,810 shares in the company, valued at $4,859,486.10. This trade represents a 22.01% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, SVP Reuben M. Shaffer sold 1,425 shares of the firm's stock in a transaction dated Friday, February 13th. The shares were sold at an average price of $234.23, for a total value of $333,777.75. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 42,345 shares of company stock worth $9,627,260 over the last 90 days. Corporate insiders own 0.60% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the company. Vanguard Group Inc. grew its position in shares of TE Connectivity by 0.4% during the fourth quarter. Vanguard Group Inc. now owns 38,421,283 shares of the electronics maker's stock valued at $8,741,226,000 after purchasing an additional 168,142 shares in the last quarter. State Street Corp lifted its holdings in shares of TE Connectivity by 0.6% in the 4th quarter. State Street Corp now owns 13,105,219 shares of the electronics maker's stock valued at $2,981,572,000 after acquiring an additional 76,292 shares during the last quarter. Geode Capital Management LLC lifted its holdings in shares of TE Connectivity by 2.6% in the 4th quarter. Geode Capital Management LLC now owns 6,284,933 shares of the electronics maker's stock valued at $1,425,669,000 after acquiring an additional 161,967 shares during the last quarter. Bank of America Corp DE lifted its holdings in shares of 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 valued at $1,058,390,000 after acquiring an additional 1,352,152 shares during the last quarter. Finally, Bank of New York Mellon Corp lifted its holdings in shares of TE Connectivity by 3.4% in the 4th quarter. Bank of New York Mellon Corp now owns 4,403,794 shares of the electronics maker's stock valued at $1,001,907,000 after acquiring an additional 144,353 shares during the last quarter. Hedge funds and other institutional investors own 91.43% 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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