TE Connectivity (NYSE:TEL) Cut to “Hold” at Zacks Research

Zacks Research downgraded shares of TE Connectivity (NYSE:TEL) from a strong-buy rating to a hold rating in a research note published on Monday morning,Zacks.com reports.

A number of other equities research analysts have also recently commented on TEL. Wall Street Zen upgraded TE Connectivity from a “buy” rating to a “strong-buy” rating in a research report on Sunday, January 11th. UBS Group increased their price target on TE Connectivity from $280.00 to $283.00 and gave the stock a “buy” rating in a research report on Wednesday, January 14th. Barclays increased their price target on TE Connectivity from $297.00 to $302.00 and gave the stock an “overweight” rating in a research report on Friday, January 23rd. The Goldman Sachs Group set a $306.00 price objective on TE Connectivity in a research report on Wednesday, January 21st. Finally, Oppenheimer upped their target price on TE Connectivity from $270.00 to $285.00 and gave the stock an “outperform” rating in a research note on Friday, February 13th. Twelve equities research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $251.93.

TE Connectivity Stock Performance

TEL opened at $209.81 on Monday. The firm has a fifty day moving average price of $220.61 and a 200 day moving average price of $225.53. TE Connectivity has a 1 year low of $116.30 and a 1 year high of $250.67. The stock has a market cap of $61.57 billion, a P/E ratio of 30.28, a P/E/G ratio of 1.57 and a beta of 1.23. The company has a debt-to-equity ratio of 0.37, a current ratio of 1.65 and a quick ratio of 1.07.

TE Connectivity (NYSE:TEL) last released its quarterly earnings results on Wednesday, January 21st. The electronics maker reported $2.72 EPS for the quarter, beating the consensus estimate of $2.55 by $0.17. TE Connectivity had a net margin of 11.41% and a return on equity of 22.72%. The company had revenue of $4.67 billion for the quarter, compared to analyst estimates of $4.52 billion. During the same quarter last year, the business earned $1.95 earnings per share. The firm’s revenue was up 21.7% on a year-over-year basis. TE Connectivity has set its Q2 2026 guidance at 2.650-2.650 EPS. Equities research analysts anticipate that TE Connectivity will post 8.05 earnings per share for the current year.

TE Connectivity Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, June 12th. Investors of record on Friday, May 22nd will be paid a $0.78 dividend. The ex-dividend date of this dividend is Friday, May 22nd. This represents a $3.12 dividend on an annualized basis and a yield of 1.5%. This is a boost from TE Connectivity’s previous quarterly dividend of $0.71. TE Connectivity’s dividend payout ratio is 40.98%.

TE Connectivity declared that its board has authorized a stock repurchase plan on Wednesday, March 11th that permits the company to repurchase $3.00 billion in outstanding shares. This repurchase authorization permits the electronics maker to buy up to 5% of its stock through open market purchases. Stock repurchase plans are typically an indication that the company’s board of directors believes its stock is undervalued.

Insider Buying and Selling

In related news, SVP Reuben M. Shaffer sold 1,425 shares of the stock in a transaction on Friday, February 13th. The stock was sold at an average price of $234.23, for a total value of $333,777.75. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Shadrak W. Kroeger sold 9,400 shares of the firm’s stock in a transaction on Monday, March 2nd. The shares were sold at an average price of $222.52, for a total value of $2,091,688.00. Following the completion of the transaction, the insider owned 25,976 shares in the company, valued at $5,780,179.52. The trade was a 26.57% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 32,945 shares of company stock worth $7,528,616. 0.60% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On TE Connectivity

A number of institutional investors and hedge funds have recently bought and sold shares of the business. HHM Wealth Advisors LLC lifted its stake in TE Connectivity by 11.8% in the 3rd quarter. HHM Wealth Advisors LLC now owns 407 shares of the electronics maker’s stock worth $89,000 after purchasing an additional 43 shares in the last quarter. Gulf International Bank UK Ltd boosted its holdings in shares of TE Connectivity by 0.3% during the 4th quarter. Gulf International Bank UK Ltd now owns 14,999 shares of the electronics maker’s stock worth $3,412,000 after purchasing an additional 44 shares during the last quarter. MCF Advisors LLC grew its position in shares of TE Connectivity by 14.1% in the fourth quarter. MCF Advisors LLC now owns 364 shares of the electronics maker’s stock valued at $83,000 after purchasing an additional 45 shares in the last quarter. Webster Bank N. A. increased its holdings in shares of TE Connectivity by 19.1% in the fourth quarter. Webster Bank N. A. now owns 287 shares of the electronics maker’s stock valued at $65,000 after purchasing an additional 46 shares during the last quarter. Finally, CYBER HORNET ETFs LLC increased its holdings in shares of TE Connectivity by 5.6% in the fourth quarter. CYBER HORNET ETFs LLC now owns 887 shares of the electronics maker’s stock valued at $202,000 after purchasing an additional 47 shares during the last quarter. 91.43% of the stock is currently owned by institutional investors and hedge funds.

About TE Connectivity

TE Connectivity (NYSE: TEL) is a global industrial technology company that designs and manufactures connectivity and sensor solutions used to enable the flow of power and data in a wide range of applications. Its product portfolio includes electrical connectors, cable and wire harness assemblies, sensors, relays and switches, fiber-optic and coaxial interconnects, and other passive and active components that provide mechanical and electrical connections in complex systems.

The company’s products and engineered solutions serve diverse end markets such as automotive and transportation, industrial equipment, data communications and networks, aerospace and defense, medical devices, and energy.