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 note issued to investors on Monday.
According to Zacks, “Year to date, shares of TE Connectivity has underperformed the industry average. Sluggish industrial markets and derivative impact of lower oil prices are posing as major headwinds for the company, thwarting growth. The company is also experiencing inefficiencies in its supply chain as it is grappling to meet very high demand from customers. Moreover, the company expects to incur high restructuring charges going forward, which will push up costs and hurt margins in the near term. Further, adverse currency fluctuations and high restructuring expenses might hurt the company’s performance. However, strong progress on strategic priorities, solid execution and impressive top-line growth are proving conducive to the company’s profitability. It expects transportation business to experience high-single-digit organic growth, fueled by rise in global auto production and impressive heavy truck business in key end markets.”
Several other research firms also recently weighed in on TEL. Stifel Nicolaus reissued a “buy” rating and issued a $87.00 target price on shares of TE Connectivity in a research report on Tuesday, October 17th. Morgan Stanley reissued an “overweight” rating and issued a $89.00 target price on shares of TE Connectivity in a research report on Wednesday, September 20th. BidaskClub downgraded shares of TE Connectivity from a “strong-buy” rating to a “buy” rating in a research report on Tuesday, July 25th. Cowen and Company reissued a “buy” rating and issued a $95.00 target price on shares of TE Connectivity in a research report on Thursday, August 10th. Finally, Royal Bank Of Canada lifted their target price on shares of TE Connectivity from $86.00 to $87.00 and gave the stock an “outperform” rating in a research report on Tuesday, June 27th. Three research analysts have rated the stock with a sell rating, one has given a hold rating and five have issued a buy rating to the company’s stock. The company has an average rating of “Hold” and an average price target of $85.00.
TE Connectivity (NYSE:TEL) traded up 0.14% during mid-day trading on Monday, hitting $88.59. 209,761 shares of the stock traded hands. The firm has a market cap of $31.31 billion, a PE ratio of 18.81 and a beta of 1.08. The stock has a 50 day moving average price of $83.65 and a 200 day moving average price of $79.38. TE Connectivity has a 12-month low of $61.07 and a 12-month high of $88.92.
TE Connectivity (NYSE:TEL) last released its earnings results on Wednesday, July 26th. The electronics maker reported $1.24 earnings per share for the quarter, topping the consensus estimate of $1.17 by $0.07. The business had revenue of $3.37 billion for the quarter, compared to the consensus estimate of $3.28 billion. TE Connectivity had a net margin of 12.98% and a return on equity of 19.76%. The firm’s quarterly revenue was up 7.9% compared to the same quarter last year. During the same period last year, the firm posted $1.08 earnings per share. On average, analysts expect that TE Connectivity will post $4.75 earnings per share for the current fiscal year.
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In related news, insider Thomas J. Lynch sold 186,033 shares of the firm’s stock in a transaction that occurred on Tuesday, August 1st. The shares were sold at an average price of $79.75, for a total transaction of $14,836,131.75. Following the completion of the sale, the insider now directly owns 504,884 shares in the company, valued at $40,264,499. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, SVP Mario Calastri sold 6,000 shares of the firm’s stock in a transaction that occurred on Wednesday, August 2nd. The stock was sold at an average price of $80.23, for a total transaction of $481,380.00. Following the sale, the senior vice president now owns 23,078 shares of the company’s stock, valued at $1,851,547.94. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 693,747 shares of company stock valued at $55,780,069. 1.30% of the stock is currently owned by corporate insiders.
Several hedge funds have recently bought and sold shares of TEL. Duncker Streett & Co. Inc. boosted its holdings in shares of TE Connectivity by 17.8% during the second quarter. Duncker Streett & Co. Inc. now owns 1,325 shares of the electronics maker’s stock worth $104,000 after purchasing an additional 200 shares during the period. First Command Bank boosted its holdings in shares of TE Connectivity by 19.6% during the second quarter. First Command Bank now owns 1,348 shares of the electronics maker’s stock worth $106,000 after purchasing an additional 221 shares during the period. Northwestern Mutual Wealth Management Co. boosted its holdings in shares of TE Connectivity by 38.6% during the second quarter. Northwestern Mutual Wealth Management Co. now owns 1,379 shares of the electronics maker’s stock worth $109,000 after purchasing an additional 384 shares during the period. Acrospire Investment Management LLC acquired a new stake in shares of TE Connectivity during the second quarter worth approximately $126,000. Finally, Harfst & Associates Inc. boosted its holdings in shares of TE Connectivity by 46.2% during the second quarter. Harfst & Associates Inc. now owns 1,722 shares of the electronics maker’s stock worth $135,000 after purchasing an additional 544 shares during the period. Institutional investors and hedge funds own 89.94% of the company’s stock.
About TE Connectivity
TE Connectivity Ltd. is a technology company. The Company designs and manufactures connectivity and sensors solutions. It operates through three segments: Transportation Solutions, Industrial Solutions and Communications Solutions. The Transportation Solutions segment offers connectivity and sensor technologies.
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