Zacks Research Downgrades TE Connectivity (NYSE:TEL) to Hold

Key Points

• Zacks Research downgraded TE Connectivity from strong-buy to hold, adding to a mixed analyst picture around the stock.
• Other recent analyst moves were also uneven: HSBC and Truist cut ratings to hold, while Oppenheimer and Wells Fargo maintained more positive views with higher price targets. Overall, TE Connectivity now has a Moderate Buy consensus and an average target price of $256.57.
• The company recently reported strong quarterly results, with EPS of $2.73 topping estimates and revenue of $4.74 billion beating forecasts, while it also authorized a $3 billion stock buyback.

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

A number of other equities analysts have also recently issued reports on TEL. HSBC cut 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. Oppenheimer increased their price objective on TE Connectivity from $270.00 to $285.00 and gave the stock an "outperform" rating in a research note on Friday, February 13th. Wall Street Zen cut TE Connectivity from a "strong-buy" rating to a "buy" rating in a report on Saturday, May 2nd. Truist Financial reduced their target price on shares of TE Connectivity from $244.00 to $240.00 and set a "hold" rating on the stock in a research note on Thursday, April 23rd. Finally, Wells Fargo & Company increased their target price on shares of TE Connectivity from $214.00 to $226.00 and gave the stock an "equal weight" rating in a research report on Thursday, April 23rd. One investment analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating and six have given a Hold rating to the company. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $256.57.

TE Connectivity Price Performance

Shares of TE Connectivity stock opened at $210.62 on Monday. The firm has a market cap of $61.48 billion, a P/E ratio of 21.51, a price-to-earnings-growth ratio of 1.46 and a beta of 1.16. The firm's 50-day simple moving average is $214.47 and its 200-day simple moving average is $220.86. TE Connectivity has a twelve month low of $162.17 and a twelve month high of $252.56. The company has a debt-to-equity ratio of 0.42, a quick ratio of 1.20 and a current ratio of 1.89.

TE Connectivity (NYSE:TEL - Get Free Report) last posted its quarterly earnings results on Wednesday, April 22nd. The electronics maker reported $2.73 earnings per share (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 net margin of 15.54% and a return on equity of 23.56%. The company's quarterly revenue was up 14.4% compared to the same quarter last year. During the same quarter in the prior year, the business posted $2.10 earnings per share. TE Connectivity has set its Q3 2026 guidance at 2.830-2.830 EPS. As a group, research analysts expect that TE Connectivity will post 11.28 EPS for the current fiscal year.

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

Insider Activity at TE Connectivity

In other news, insider Shadrak W. Kroeger sold 9,400 shares of the stock in a transaction on Monday, June 1st. The stock was sold at an average price of $215.00, for a total transaction of $2,021,000.00. Following the sale, the insider owned 25,976 shares in the company, valued at approximately $5,584,840. This represents a 26.57% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 28,200 shares of company stock worth $6,140,644 in the last quarter. 0.60% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On TE Connectivity

A number of hedge funds have recently added to or reduced their stakes in the stock. Kohmann Bosshard Financial Services LLC acquired a new stake in shares of TE Connectivity in the fourth quarter valued at approximately $25,000. Caitlin John LLC acquired a new stake in TE Connectivity in the third quarter worth about $28,000. Aster Capital Management DIFC Ltd acquired a new position in TE Connectivity during the 3rd quarter valued at about $29,000. Commonwealth Retirement Investments LLC bought a new position in shares of TE Connectivity in the 4th quarter valued at about $40,000. Finally, MV Capital Management Inc. bought a new stake in shares of TE Connectivity during the fourth quarter worth approximately $41,000. 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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