TE Connectivity Ltd. (TEL) Upgraded to “Hold” by Zacks Investment Research
TE Connectivity Ltd. (NYSE:TEL) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a note issued to investors on Wednesday.
According to Zacks, “TE Connectivity has a decent earnings surprise history, beating estimates thrice in the trailing four quarters. Robust growth in harsh environment and SubCom businesses, along with productivity improvements, boosted growth in the last reported quarter. Strong traction in the connectivity and sensor business, sales growth and design-wins in automotive & integrated multiple components, and rebound in transportation business were key growth drivers. However, sluggish industrial markets, weakness in oil & gas markets and derivative impact of lower oil prices are posing as major headwinds, thwarting growth. Also, adverse currency fluctuations and high restructuring expenses might hurt the company’s performance. Going forward, industrial, data & devices, and communications businesses are expected to be impacted by the weakness in Chinese economy. “
Several other brokerages also recently weighed in on TEL. Morgan Stanley reaffirmed a “buy” rating on shares of TE Connectivity in a research report on Tuesday, September 20th. Deutsche Bank AG restated a “hold” rating and set a $65.00 target price on shares of TE Connectivity in a research report on Wednesday, June 15th. Royal Bank Of Canada dropped their target price on TE Connectivity from $66.00 to $63.00 and set an “outperform” rating on the stock in a research report on Friday, July 1st. Finally, RBC Capital Markets restated an “outperform” rating and set a $65.00 target price (up from $63.00) on shares of TE Connectivity in a research report on Thursday, July 21st. Two investment analysts have rated the stock with a hold rating and three have given a buy rating to the company’s stock. The company currently has a consensus rating of “Buy” and an average target price of $64.33.
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Shares of TE Connectivity (NYSE:TEL) traded down 0.54% during midday trading on Wednesday, reaching $62.41. The company’s stock had a trading volume of 446,940 shares. TE Connectivity has a 52 week low of $51.70 and a 52 week high of $67.99. The company has a 50 day moving average price of $63.19 and a 200-day moving average price of $60.85. The stock has a market capitalization of $22.19 billion, a PE ratio of 9.11 and a beta of 1.41.
TE Connectivity (NYSE:TEL) last announced its quarterly earnings results on Wednesday, July 20th. The company reported $1.08 earnings per share for the quarter, topping the consensus estimate of $1.03 by $0.05. The company had revenue of $3.12 billion for 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%. The firm’s revenue for the quarter was up .1% compared to the same quarter last year. During the same period last year, the firm earned $0.90 EPS. On average, equities research analysts expect that TE Connectivity will post $4.01 EPS for the current year.
In related news, COO Joseph B. Donahue sold 10,000 shares of the firm’s stock in a transaction dated Tuesday, August 30th. The shares were sold at an average price of $63.78, for a total value of $637,800.00. Following the transaction, the chief operating officer now directly owns 38,825 shares of the company’s stock, valued at approximately $2,476,258.50. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, CEO Thomas J. Lynch sold 123,635 shares of the firm’s stock in a transaction dated Tuesday, September 6th. The shares were sold at an average price of $62.78, for a total transaction of $7,761,805.30. Following the completion of the transaction, the chief executive officer now directly owns 507,776 shares in the company, valued at $31,878,177.28. The disclosure for this sale can be found here. Insiders own 1.49% of the company’s stock.
A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Loring Wolcott & Coolidge Fiduciary Advisors LLP MA raised its position 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 in the last quarter. Financial Architects Inc raised its position 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 in the last quarter. Benjamin F. Edwards & Company Inc. raised its position 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 in the last quarter. Signaturefd LLC raised its position 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 in the last quarter. Finally, Bienville Capital Management LLC bought a new position in shares of TE Connectivity during the second quarter worth $202,000. 91.55% of the stock is currently owned by hedge funds and other 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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