Zacks Investment Research Upgrades TE Connectivity Ltd. (TEL) to “Hold”
TE Connectivity Ltd. (NYSE:TEL) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research report issued 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 research firms have also issued reports on TEL. Morgan Stanley restated a “buy” rating on shares of TE Connectivity in a report on Tuesday, September 20th. 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. 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. 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. Two research analysts have rated the stock with a hold rating and three have assigned a buy rating to the company. The stock presently has a consensus rating of “Buy” and a consensus price target of $64.33.
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Shares of TE Connectivity (NYSE:TEL) traded down 0.53% during midday trading on Wednesday, reaching $62.42. 442,227 shares of the company’s stock were exchanged. TE Connectivity has a 12-month low of $51.70 and a 12-month high of $67.99. The stock’s 50 day moving average price is $63.19 and its 200 day moving average price is $60.85. The company has a market cap of $22.19 billion, a price-to-earnings ratio of 9.11 and a beta of 1.41.
TE Connectivity (NYSE:TEL) last issued its quarterly earnings data on Wednesday, July 20th. The company reported $1.08 EPS for the quarter, topping 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 earned $3.12 billion during the quarter, compared to analysts’ expectations of $3.13 billion. During the same period last year, the company posted $0.90 EPS. The business’s revenue was up .1% on a year-over-year basis. Equities analysts anticipate that TE Connectivity will post $4.01 earnings per share for the current fiscal year.
In related news, SVP Robert J. Ott sold 11,156 shares of TE Connectivity stock in a transaction dated Thursday, August 25th. The shares were sold at an average price of $63.32, for a total transaction of $706,397.92. Following the completion of the sale, the senior vice president now owns 8,185 shares in the company, valued at approximately $518,274.20. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, COO Joseph B. Donahue sold 10,000 shares of TE Connectivity stock in a transaction dated Tuesday, August 30th. The shares were sold at an average price of $63.78, for a total transaction of $637,800.00. Following the sale, the chief operating officer now owns 38,825 shares of the company’s stock, valued at approximately $2,476,258.50. The disclosure for this sale can be found here. Corporate insiders own 1.49% of the company’s stock.
A number of large investors have recently made changes to their positions in the stock. Community Trust & Investment Company raised its stake in shares of TE Connectivity by 20.0% in the fourth quarter. Community Trust & Investment Company now owns 208,522 shares of the company’s stock worth $13,473,000 after buying an additional 34,725 shares during the last quarter. Capital Fund Management S.A. acquired a new position in TE Connectivity during the fourth quarter worth approximately $9,572,000. ICON Advisers acquired a new position in TE Connectivity during the third quarter worth approximately $4,456,000. MU Investments Co. Ltd. increased its position in TE Connectivity by 6,420.0% in the fourth quarter. MU Investments Co. Ltd. now owns 65,200 shares of the company’s stock worth $4,252,000 after buying an additional 64,200 shares during the period. Finally, Korea Investment CORP increased its position in TE Connectivity by 18.4% in the fourth quarter. Korea Investment CORP now owns 478,452 shares of the company’s stock worth $30,912,000 after buying an additional 74,300 shares during the period. Institutional investors own 91.55% 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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