Zacks Investment Research Downgrades TE Connectivity Ltd. (TEL) to Sell
TE Connectivity Ltd. (NYSE:TEL) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report issued on Tuesday.
According to Zacks, “TE Connectivity has been suffering from sluggishness in industrial markets. Further, weakness in oil & gas markets and the derivative impact of lower oil prices hurt the company’s operations and are expected to remain formidable headwinds, going forward. Also, adverse currency fluctuations and high restructuring expenses have been straining the company’s results. Going forward, TE Connectivity believes that its industrial, data & devices, and communications businesses will continue to be marred by softness in the Chinese economy. The company also expects weakness in Communication segment to continue. However, TE Connectivity has a decent earnings surprise history, beating estimates thrice in the trailing four quarters. Strong performance of the sensors & harsh environments business and a rebound in transportation business remain strong growth drivers for the company.”
A number of other analysts also recently issued reports on TEL. Deutsche Bank AG restated a “hold” rating and issued a $65.00 price target on shares of TE Connectivity in a research report on Wednesday, June 15th. Morgan Stanley restated a “buy” rating on shares of TE Connectivity in a research report on Tuesday. Royal Bank Of Canada restated a “buy” rating and issued a $66.00 price target on shares of TE Connectivity in a research report on Friday, June 17th. Finally, RBC Capital Markets restated an “outperform” rating and issued a $65.00 price target (up from $63.00) on shares of TE Connectivity in a research report on Thursday, July 21st. One equities research analyst has rated the stock with a sell rating, one has assigned a hold rating and three have given a buy rating to the stock. The company currently has a consensus rating of “Hold” and an average target price of $64.33.
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Shares of TE Connectivity (NYSE:TEL) traded up 0.811% during trading on Tuesday, reaching $62.795. 980,737 shares of the company traded hands. The company’s 50-day moving average price is $61.49 and its 200-day moving average price is $60.44. The company has a market capitalization of $22.33 billion, a P/E ratio of 9.168 and a beta of 1.39. TE Connectivity has a 52 week low of $51.70 and a 52 week high of $67.99.
TE Connectivity (NYSE:TEL) last issued its quarterly earnings results on Wednesday, July 20th. The company reported $1.08 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.03 by $0.05. The company earned $3.12 billion during the quarter, compared to the consensus estimate of $3.13 billion. TE Connectivity had a return on equity of 16.72% and a net margin of 21.97%. TE Connectivity’s revenue was up .1% on a year-over-year basis. During the same period last year, the company earned $0.90 earnings per share. Equities research analysts forecast that TE Connectivity will post $4.01 EPS for the current fiscal year.
The firm also recently announced a quarterly dividend, which was paid on Friday, September 9th. Stockholders of record on Friday, August 26th were given a dividend of $0.37 per share. The ex-dividend date was Wednesday, August 24th. This represents a $1.48 annualized dividend and a dividend yield of 2.38%. TE Connectivity’s dividend payout ratio (DPR) is 21.67%.
In other news, CEO Thomas J. Lynch sold 123,635 shares of TE Connectivity stock in a transaction on Tuesday, September 6th. The stock was sold at an average price of $62.78, for a total transaction of $7,761,805.30. Following the completion of the sale, the chief executive officer now directly owns 507,776 shares in the company, valued at $31,878,177.28. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, COO Joseph B. Donahue sold 10,000 shares of TE Connectivity stock in a transaction on Tuesday, August 30th. The stock was sold at an average price of $63.78, for a total value of $637,800.00. Following the sale, the chief operating officer now owns 38,825 shares of the company’s stock, valued at $2,476,258.50. The disclosure for this sale can be found here. Insiders own 1.49% of the company’s stock.
Several hedge funds have recently added to or reduced their stakes in TEL. JPMorgan Chase & Co. increased its stake in TE Connectivity by 15.3% in the first quarter. JPMorgan Chase & Co. now owns 14,767,480 shares of the company’s stock valued at $914,402,000 after buying an additional 1,959,504 shares during the period. State Street Corp increased its stake in TE Connectivity by 1.5% in the first quarter. State Street Corp now owns 13,705,375 shares of the company’s stock valued at $848,635,000 after buying an additional 198,512 shares during the period. Artisan Partners Limited Partnership increased its stake in TE Connectivity by 1.6% in the second quarter. Artisan Partners Limited Partnership now owns 10,715,976 shares of the company’s stock valued at $611,989,000 after buying an additional 165,600 shares during the last quarter. Boston Partners increased its stake in TE Connectivity by 161.8% in the second quarter. Boston Partners now owns 8,963,462 shares of the company’s stock valued at $511,903,000 after buying an additional 5,539,080 shares during the last quarter. Finally, First Pacific Advisors LLC increased its stake in TE Connectivity by 5.4% in the second quarter. First Pacific Advisors LLC now owns 6,907,710 shares of the company’s stock valued at $394,499,000 after buying an additional 353,300 shares during the last quarter. Institutional investors and hedge funds own 91.64% of the company’s stock.
TE Connectivity Company Profile
TE Connectivity Ltd. (TE Connectivity) is a technology company. The Company designs and manufactures connectivity and sensors solutions. It operates its business through three segments: Transportation Solutions, which offers various products, including terminals and connector systems and components, relays, circuit protection devices, sensors, and application tooling, among others; Industrial Solutions, which include terminals and connector systems and components, heat shrink tubing, relays, wire and cable, and Communications Solutions, which include terminals and connector systems and components, circuit protection devices, antennas, relays and heat shrink tubing.
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