Traders Buy High Volume of Call Options on TE Connectivity (NYSE:TEL)

Key Points

• Unusually heavy call option activity hit TE Connectivity, with traders buying 10,532 call contracts on Friday versus a typical volume of 1,352 — a jump of 679%.
• Shares slipped 1.7% to $196.66 despite the options surge, and the stock is trading below both its 50-day and 200-day moving averages.
• Fundamentals remain solid: the company beat quarterly EPS and revenue estimates, raised guidance for Q3 2026, and continues to return capital via a quarterly dividend and a $3 billion share repurchase program.

TE Connectivity Ltd. (NYSE:TEL - Get Free Report) was the recipient of unusually large options trading on Friday. Stock investors purchased 10,532 call options on the company. This is an increase of 679% compared to the typical volume of 1,352 call options.

Insider Transactions at TE Connectivity

In other TE Connectivity news, insider Shadrak W. Kroeger sold 9,400 shares of the company's stock in a transaction on Monday, June 1st. The stock was sold at an average price of $215.00, for a total value of $2,021,000.00. Following the transaction, the insider owned 25,976 shares of the company's stock, valued at $5,584,840. This represents a 26.57% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 28,200 shares of company stock worth $6,140,644. 0.60% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in TEL. Brighton Jones LLC purchased a new position in TE Connectivity in the fourth quarter valued at about $820,000. Sivia Capital Partners LLC boosted its holdings in shares of TE Connectivity by 66.7% in the 2nd quarter. Sivia Capital Partners LLC now owns 2,517 shares of the electronics maker's stock valued at $425,000 after buying an additional 1,007 shares in the last quarter. Walleye Capital LLC grew its position in shares of TE Connectivity by 14.6% in the 2nd quarter. Walleye Capital LLC now owns 2,688 shares of the electronics maker's stock worth $453,000 after buying an additional 343 shares during the last quarter. Squarepoint Ops LLC raised its stake in shares of TE Connectivity by 1,214.0% during the 2nd quarter. Squarepoint Ops LLC now owns 105,267 shares of the electronics maker's stock worth $17,755,000 after acquiring an additional 97,256 shares in the last quarter. Finally, Ieq Capital LLC lifted its position in TE Connectivity by 75.0% during the second quarter. Ieq Capital LLC now owns 23,284 shares of the electronics maker's stock valued at $3,927,000 after acquiring an additional 9,980 shares during the last quarter. 91.43% of the stock is owned by institutional investors.

Analyst Upgrades and Downgrades

A number of analysts have recently issued reports on TEL shares. Wall Street Zen lowered shares of TE Connectivity from a "strong-buy" rating to a "buy" rating in a research note on Saturday, May 2nd. UBS Group lowered their price objective on shares of TE Connectivity from $272.00 to $261.00 and set a "buy" rating for the company in a research report on Thursday, April 23rd. The Goldman Sachs Group set a $286.00 target price on shares of TE Connectivity in a research note on Wednesday, April 22nd. Evercore reaffirmed an "in-line" rating and set a $230.00 target price on shares of TE Connectivity in a research report on Monday. Finally, Weiss Ratings upgraded TE Connectivity from a "buy (b-)" rating to a "buy (b)" rating in a report on Wednesday, April 29th. One research analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and seven have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, TE Connectivity presently has an average rating of "Moderate Buy" and a consensus target price of $254.93.

TE Connectivity Stock Down 1.7%

NYSE:TEL traded down $3.41 during mid-day trading on Friday, reaching $196.66. The company's stock had a trading volume of 1,296,581 shares, compared to its average volume of 2,454,863. The company has a quick ratio of 1.20, a current ratio of 1.89 and a debt-to-equity ratio of 0.42. TE Connectivity has a 1 year low of $166.58 and a 1 year high of $252.56. The stock has a fifty day moving average of $212.59 and a 200-day moving average of $219.53. The firm has a market capitalization of $57.40 billion, a PE ratio of 20.07, a price-to-earnings-growth ratio of 1.40 and a beta of 1.16.

TE Connectivity (NYSE:TEL - Get Free Report) last posted its quarterly earnings results on Wednesday, April 22nd. The electronics maker reported $2.73 EPS for the quarter, beating the consensus estimate of $2.70 by $0.03. TE Connectivity had a net margin of 15.54% and a return on equity of 23.56%. The business had revenue of $4.74 billion during the quarter, compared to analyst estimates of $4.72 billion. During the same quarter in the previous year, the business posted $2.10 EPS. The company's quarterly revenue was up 14.4% compared to the same quarter last year. TE Connectivity has set its Q3 2026 guidance at 2.830-2.830 EPS. Equities research analysts forecast that TE Connectivity will post 11.31 earnings per share for the current year.

TE Connectivity Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, September 11th. Shareholders of record on Friday, August 21st will be issued a dividend of $0.78 per share. The ex-dividend date is Friday, August 21st. This represents a $3.12 dividend on an annualized basis and a yield of 1.6%. TE Connectivity's dividend payout ratio is currently 31.87%.

TE Connectivity announced that its Board of Directors has initiated a stock repurchase plan on Wednesday, March 11th that authorizes the company to buyback $3.00 billion in outstanding shares. This buyback authorization authorizes the electronics maker to reacquire up to 5% of its shares through open market purchases. Shares buyback plans are often a sign that the company's management believes its shares are undervalued.

TE Connectivity Company Profile

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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