Zacks Investment Research Lowers TE Connectivity (TEL) to Hold
TE Connectivity (NYSE:TEL) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report issued on Saturday.
According to Zacks, “TE Connectivity has a striking earnings surprise history over the four trailing quarters, beating estimates all through. Strong progress on strategic priorities, solid execution and impressive top-line growth are proving conducive to the company’s profitability. The company 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. Also, its Communications and Industrial segments are witnessing strong rebound, thus stoking growth. However, sluggish industrial 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. The stock has also underperformed the industry average over the past year. The company is currently experiencing inefficiencies in its supply chain.”
A number of other equities research analysts also recently commented on TEL. Stifel Nicolaus reiterated a “buy” rating and set a $87.00 price objective on shares of TE Connectivity in a research report on Tuesday, October 17th. Royal Bank of Canada reiterated a “buy” rating and set a $95.00 price objective (up previously from $90.00) on shares of TE Connectivity in a research report on Monday, October 30th. SunTrust Banks increased their price objective on TE Connectivity to $90.00 and gave the company a “hold” rating in a research report on Thursday, November 2nd. They noted that the move was a valuation call. Citigroup increased their price objective on TE Connectivity from $92.00 to $106.00 and gave the company a “buy” rating in a research report on Thursday, November 2nd. Finally, Morgan Stanley increased their price objective on TE Connectivity from $89.00 to $97.00 and gave the company an “overweight” rating in a research report on Thursday, November 2nd. One investment analyst has rated the stock with a sell rating, three have given a hold rating and eleven have given a buy rating to the company. The stock has an average rating of “Buy” and a consensus price target of $145.92.
TE Connectivity (NYSE:TEL) last announced its quarterly earnings data on Wednesday, November 1st. The electronics maker reported $1.25 EPS for the quarter, beating analysts’ consensus estimates of $1.16 by $0.09. TE Connectivity had a return on equity of 18.97% and a net margin of 12.84%. The company had revenue of $3.46 billion during the quarter, compared to the consensus estimate of $3.28 billion. During the same quarter in the prior year, the firm earned $1.22 EPS. The company’s quarterly revenue was up 3.7% compared to the same quarter last year. sell-side analysts forecast that TE Connectivity will post 5.28 earnings per share for the current fiscal year.
TE Connectivity announced that its Board of Directors has initiated a stock repurchase plan on Friday, December 8th that permits the company to buyback $1.50 billion in outstanding shares. This buyback authorization permits the electronics maker to repurchase shares of its stock through open market purchases. Shares buyback plans are generally an indication that the company’s leadership believes its shares are undervalued.
In other TE Connectivity news, insider James O’toole sold 45,962 shares of the business’s stock in a transaction on Monday, November 6th. The shares were sold at an average price of $93.13, for a total transaction of $4,280,441.06. Following the sale, the insider now directly owns 21,950 shares of the company’s stock, valued at approximately $2,044,203.50. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, insider Thomas J. Lynch sold 130,617 shares of the business’s stock in a transaction on Wednesday, November 1st. The shares were sold at an average price of $91.29, for a total transaction of $11,924,025.93. Following the sale, the insider now directly owns 429,500 shares in the company, valued at $39,209,055. The disclosure for this sale can be found here. Over the last three months, insiders have sold 705,373 shares of company stock worth $65,870,755. Company insiders own 1.30% of the company’s stock.
A number of large investors have recently made changes to their positions in TEL. Vanguard Group Inc. increased its stake in shares of TE Connectivity by 2.3% in the second quarter. Vanguard Group Inc. now owns 23,312,100 shares of the electronics maker’s stock worth $1,834,196,000 after acquiring an additional 521,884 shares during the last quarter. Russell Investments Group Ltd. increased its stake in shares of TE Connectivity by 10.9% in the third quarter. Russell Investments Group Ltd. now owns 227,441 shares of the electronics maker’s stock worth $18,890,000 after acquiring an additional 22,345 shares during the last quarter. U S Global Investors Inc. increased its stake in shares of TE Connectivity by 21.1% in the second quarter. U S Global Investors Inc. now owns 6,540 shares of the electronics maker’s stock worth $515,000 after acquiring an additional 1,140 shares during the last quarter. Meag Munich Ergo Kapitalanlagegesellschaft MBH increased its stake in shares of TE Connectivity by 55.2% in the third quarter. Meag Munich Ergo Kapitalanlagegesellschaft MBH now owns 315,263 shares of the electronics maker’s stock worth $26,131,000 after acquiring an additional 112,161 shares during the last quarter. Finally, Hartford Investment Management Co. acquired a new position in shares of TE Connectivity in the third quarter worth $6,443,000. 90.16% of the stock is currently owned by institutional investors.
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TE Connectivity Company Profile
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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