Zacks Research Forecasts Higher Earnings for TE Connectivity

Key Points

• Zacks Research has raised its FY2025 earnings per share estimate for TE Connectivity from $8.17 to $8.59, exceeding the current consensus estimate of $8.05.
• Multiple analysts have upgraded TE Connectivity's stock ratings recently, with HSBC raising it to a "strong-buy" and Citigroup increasing the target price from $200.00 to $230.00.
• TE Connectivity announced a quarterly dividend of $0.71 per share, which will be paid on September 12th, representing an annual yield of 1.4%.

TE Connectivity Ltd. (NYSE:TEL - Free Report) - Equities researchers at Zacks Research lifted their FY2025 earnings per share (EPS) estimates for shares of TE Connectivity in a research report issued to clients and investors on Wednesday, August 13th. Zacks Research analyst A. Ganguly now forecasts that the electronics maker will post earnings per share of $8.59 for the year, up from their prior forecast of $8.17. The consensus estimate for TE Connectivity's current full-year earnings is $8.05 per share. Zacks Research also issued estimates for TE Connectivity's Q4 2025 earnings at $2.27 EPS, Q1 2026 earnings at $2.10 EPS, Q2 2026 earnings at $2.25 EPS, Q3 2026 earnings at $2.36 EPS, FY2026 earnings at $9.25 EPS, Q2 2027 earnings at $2.35 EPS and FY2027 earnings at $9.83 EPS.

Several other equities analysts also recently commented on TEL. Hsbc Global Res raised shares of TE Connectivity from a "hold" rating to a "strong-buy" rating in a research report on Thursday, April 24th. Citigroup increased their target price on shares of TE Connectivity from $200.00 to $230.00 and gave the stock a "buy" rating in a research report on Thursday, July 24th. JPMorgan Chase & Co. increased their target price on shares of TE Connectivity from $186.00 to $204.00 and gave the stock a "neutral" rating in a research report on Thursday, July 24th. Wall Street Zen raised TE Connectivity from a "hold" rating to a "buy" rating in a research report on Saturday, July 12th. Finally, UBS Group raised their price target on TE Connectivity from $185.00 to $201.00 and gave the company a "buy" rating in a research report on Monday, July 14th. Four equities research analysts have rated the stock with a hold rating, ten have given a buy rating and one has given a strong buy rating to the company's stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $197.55.

TE Connectivity Trading Up 1.0%

TE Connectivity stock opened at $206.20 on Thursday. The company has a debt-to-equity ratio of 0.39, a current ratio of 1.52 and a quick ratio of 0.96. The company has a market capitalization of $60.93 billion, a price-to-earnings ratio of 42.69, a PEG ratio of 2.44 and a beta of 1.23. TE Connectivity has a one year low of $116.30 and a one year high of $212.76. The company's fifty day moving average price is $180.97 and its two-hundred day moving average price is $158.89.

TE Connectivity (NYSE:TEL - Get Free Report) last posted its earnings results on Wednesday, July 23rd. The electronics maker reported $2.27 EPS for the quarter, topping the consensus estimate of $2.08 by $0.19. The firm had revenue of $4.53 billion for the quarter, compared to the consensus estimate of $4.30 billion. TE Connectivity had a net margin of 8.78% and a return on equity of 20.22%. The business's quarterly revenue was up 13.9% on a year-over-year basis. During the same period in the prior year, the business posted $1.91 earnings per share.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. State Street Corp lifted its stake in TE Connectivity by 0.8% during the second quarter. State Street Corp now owns 12,928,733 shares of the electronics maker's stock worth $2,180,693,000 after purchasing an additional 100,040 shares during the period. Daiwa Securities Group Inc. lifted its stake in TE Connectivity by 17.6% during the second quarter. Daiwa Securities Group Inc. now owns 63,826 shares of the electronics maker's stock worth $10,765,000 after purchasing an additional 9,543 shares during the period. Certuity LLC bought a new position in TE Connectivity during the second quarter worth about $354,000. L2 Asset Management LLC bought a new position in TE Connectivity during the second quarter worth about $224,000. Finally, Ossiam lifted its stake in TE Connectivity by 1,202.7% during the second quarter. Ossiam now owns 129,059 shares of the electronics maker's stock worth $21,768,000 after purchasing an additional 119,152 shares during the period. Institutional investors own 91.43% of the company's stock.

Insider Transactions at TE Connectivity

In related news, EVP John S. Jenkins sold 45,850 shares of TE Connectivity stock in a transaction dated Monday, July 28th. The stock was sold at an average price of $209.33, for a total transaction of $9,597,780.50. Following the sale, the executive vice president directly owned 24,625 shares of the company's stock, valued at $5,154,751.25. This trade represents a 65.06% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Shadrak W. Kroeger sold 25,000 shares of TE Connectivity stock in a transaction dated Monday, June 2nd. The stock was sold at an average price of $159.03, for a total value of $3,975,750.00. Following the sale, the insider directly owned 25,976 shares in the company, valued at approximately $4,130,963.28. This trade represents a 49.04% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 138,795 shares of company stock valued at $26,401,597 in the last ninety days. 0.90% of the stock is owned by corporate insiders.

TE Connectivity Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, September 12th. Investors of record on Friday, August 22nd will be given a dividend of $0.71 per share. The ex-dividend date of this dividend is Friday, August 22nd. This represents a $2.84 dividend on an annualized basis and a yield of 1.4%. TE Connectivity's dividend payout ratio (DPR) is 58.80%.

About TE Connectivity

TE Connectivity Ltd., together with its subsidiaries, manufactures and sells connectivity and sensor solutions in Europe, the Middle East, Africa, the AsiaPacific, and the Americas. The company operates through three segments: Transportation Solutions, Industrial Solutions, and Communications Solutions.

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