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 research note 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 analysts have also weighed in on TEL. Stifel Nicolaus reiterated a “buy” rating and issued a $87.00 price target on shares of TE Connectivity in a research report on Tuesday, October 17th. Royal Bank of Canada decreased their price target on TE Connectivity from $100.00 to $95.00 and set an “outperform” rating for the company in a research report on Thursday, November 2nd. ValuEngine upgraded TE Connectivity from a “hold” rating to a “buy” rating in a research report on Sunday, December 31st. SunTrust Banks raised their price objective on TE Connectivity to $90.00 and gave the stock a “hold” rating in a research report on Thursday, November 2nd. They noted that the move was a valuation call. Finally, Citigroup raised their price objective on TE Connectivity from $92.00 to $106.00 and gave the stock a “buy” rating in a research report on Thursday, November 2nd. One research analyst has rated the stock with a sell rating, three have assigned a hold rating and eleven have issued a buy rating to the company’s stock. The company currently has an average rating of “Buy” and an average target price of $145.92.
TE Connectivity (NYSE:TEL) last released its quarterly earnings results on Wednesday, November 1st. The electronics maker reported $1.25 earnings per share for the quarter, beating the Zacks’ consensus estimate of $1.16 by $0.09. TE Connectivity had a return on equity of 18.97% and a net margin of 12.84%. The business had revenue of $3.46 billion during the quarter, compared to analyst estimates of $3.28 billion. During the same quarter last year, the company posted $1.22 EPS. TE Connectivity’s revenue for the quarter was up 3.7% on a year-over-year basis. analysts anticipate that TE Connectivity will post 5.28 EPS for the current year.
TE Connectivity announced that its Board of Directors has approved a share buyback program on Friday, December 8th that allows the company to buyback $1.50 billion in shares. This buyback authorization allows the electronics maker to purchase shares of its stock through open market purchases. Stock buyback programs are often a sign that the company’s management believes its stock is undervalued.
In other TE Connectivity news, COO Joseph B. Donahue sold 1,238 shares of the firm’s stock in a transaction dated Wednesday, November 15th. The stock was sold at an average price of $93.23, for a total transaction of $115,418.74. Following the completion of the sale, the chief operating officer now directly owns 52,134 shares in the company, valued at approximately $4,860,452.82. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, SVP Robert J. Ott sold 20,000 shares of the firm’s stock in a transaction dated Tuesday, November 21st. The stock was sold at an average price of $95.78, for a total value of $1,915,600.00. Following the sale, the senior vice president now owns 31,390 shares of the company’s stock, valued at $3,006,534.20. The disclosure for this sale can be found here. Insiders have sold a total of 705,373 shares of company stock valued at $65,870,755 over the last 90 days. Corporate insiders own 1.30% of the company’s stock.
Institutional investors and hedge funds have recently bought and sold shares of the company. Vanguard Group Inc. raised its stake in shares of TE Connectivity by 2.3% during the 2nd quarter. Vanguard Group Inc. now owns 23,312,100 shares of the electronics maker’s stock worth $1,834,196,000 after purchasing an additional 521,884 shares in the last quarter. Russell Investments Group Ltd. raised its stake in shares of TE Connectivity by 10.9% during the 3rd quarter. Russell Investments Group Ltd. now owns 227,441 shares of the electronics maker’s stock worth $18,890,000 after purchasing an additional 22,345 shares in the last quarter. U S Global Investors Inc. raised its stake in shares of TE Connectivity by 21.1% during the 2nd quarter. U S Global Investors Inc. now owns 6,540 shares of the electronics maker’s stock worth $515,000 after purchasing an additional 1,140 shares in the last quarter. Meag Munich Ergo Kapitalanlagegesellschaft MBH raised its stake in shares of TE Connectivity by 55.2% during the 3rd quarter. Meag Munich Ergo Kapitalanlagegesellschaft MBH now owns 315,263 shares of the electronics maker’s stock worth $26,131,000 after purchasing an additional 112,161 shares in the last quarter. Finally, Hartford Investment Management Co. purchased a new stake in shares of TE Connectivity during the 3rd quarter worth about $6,443,000. 90.16% of the stock is owned by institutional investors.
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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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