Zacks Investment Research Lowers 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 research analysts have also recently commented on TEL. Morgan Stanley reiterated a “buy” rating on shares of TE Connectivity in a research report on Tuesday. Deutsche Bank AG restated a “hold” rating and issued a $65.00 target price on shares of TE Connectivity in a report on Wednesday, June 15th. Royal Bank Of Canada restated a “buy” rating and issued a $66.00 target price on shares of TE Connectivity in a report on Friday, June 17th. Finally, RBC Capital Markets restated an “outperform” rating and issued a $65.00 target price (up previously from $63.00) on shares of TE Connectivity in a report on Thursday, July 21st. One analyst has rated the stock with a sell rating, one has assigned a hold rating and three have issued a buy rating to the stock. TE Connectivity presently has an average rating of “Hold” and a consensus price target of $64.33.
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Shares of TE Connectivity (NYSE:TEL) traded up 0.63% during mid-day trading on Tuesday, reaching $62.68. 942,129 shares of the company’s stock were exchanged. The stock has a 50-day moving average of $61.49 and a 200 day moving average of $60.44. The firm has a market capitalization of $22.29 billion, a P/E ratio of 9.15 and a beta of 1.39. TE Connectivity has a one year low of $51.70 and a one year high of $67.99.
TE Connectivity (NYSE:TEL) last issued its quarterly earnings results on Wednesday, July 20th. The company reported $1.08 EPS for the quarter, beating analysts’ consensus estimates of $1.03 by $0.05. TE Connectivity had a net margin of 21.97% and a return on equity of 16.72%. The business had revenue of $3.12 billion for the quarter, compared to analysts’ expectations of $3.13 billion. During the same period last year, the business earned $0.90 earnings per share. The business’s quarterly revenue was up .1% on a year-over-year basis. On average, analysts forecast that TE Connectivity will post $4.01 EPS for the current fiscal year.
The firm also recently declared a quarterly dividend, which was paid on Friday, September 9th. Investors of record on Friday, August 26th were paid a $0.37 dividend. This represents a $1.48 dividend on an annualized basis and a yield of 2.38%. The ex-dividend date of this dividend was Wednesday, August 24th. TE Connectivity’s payout ratio is 21.67%.
In related news, COO Joseph B. Donahue sold 10,000 shares of the firm’s 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 completion of the sale, the chief operating officer now owns 38,825 shares of the company’s stock, valued at $2,476,258.50. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider James O’toole sold 13,925 shares of the firm’s stock in a transaction on Monday, July 25th. The stock was sold at an average price of $61.40, for a total value of $854,995.00. The disclosure for this sale can be found here. 1.49% of the stock is owned by corporate insiders.
A number of hedge funds have recently made changes to their positions in TEL. Beacon Capital Management acquired a new stake in shares of TE Connectivity during the fourth quarter worth approximately $0. Loring Wolcott & Coolidge Fiduciary Advisors LLP MA raised its stake in shares of TE Connectivity by 106.7% in the second quarter. Loring Wolcott & Coolidge Fiduciary Advisors LLP MA now owns 2,274 shares of the company’s stock worth $130,000 after buying an additional 1,174 shares during the last quarter. Financial Architects Inc raised its stake in shares of TE Connectivity by 41.9% in the second quarter. Financial Architects Inc now owns 2,416 shares of the company’s stock worth $138,000 after buying an additional 713 shares during the last quarter. Benjamin F. Edwards & Company Inc. raised its stake in shares of TE Connectivity by 0.7% in the second quarter. Benjamin F. Edwards & Company Inc. now owns 2,594 shares of the company’s stock worth $148,000 after buying an additional 19 shares during the last quarter. Finally, Signaturefd LLC raised its stake in shares of TE Connectivity by 8.5% in the second quarter. Signaturefd LLC now owns 3,208 shares of the company’s stock worth $183,000 after buying an additional 252 shares during the last quarter. 91.64% of the stock is owned by institutional investors.
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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