Zacks Investment Research upgraded shares of TE Connectivity (NYSE:TEL) from a sell rating to a hold rating in a research note issued to investors on Thursday.
According to Zacks, “TE Connectivity strong progress on its strategic priorities is expected to benefit its business in the long run. Further, its well-performing industrial and communications solutions portfolio is a major positive. Notably, the stock has outperformed the industry it belongs to over a year. However, intensifying competition in the electronic components market poses a severe pricing pressure and risk to its market share. The company is currently suffering from end market fluctuations due to which the company has provided weak guidance for the current quarter. Also, sluggish auto production in Europe and China remains a concern for the company’s transportation solutions segment.”
Several other research firms also recently commented on TEL. Morgan Stanley cut their target price on shares of TE Connectivity from $107.00 to $102.00 and set an overweight rating on the stock in a research report on Wednesday, October 3rd. SunTrust Banks reiterated a hold rating and set a $82.00 target price on shares of TE Connectivity in a research report on Wednesday, October 31st. Robert W. Baird downgraded shares of TE Connectivity from an outperform rating to a neutral rating in a research report on Monday, October 1st. Royal Bank of Canada set a $103.00 target price on shares of TE Connectivity and gave the stock a buy rating in a research report on Monday, October 29th. Finally, ValuEngine downgraded shares of TE Connectivity from a hold rating to a sell rating in a research report on Wednesday, October 3rd. Six research analysts have rated the stock with a hold rating and seven have assigned a buy rating to the stock. TE Connectivity presently has a consensus rating of Buy and an average price target of $101.27.
NYSE:TEL traded up $0.34 during mid-day trading on Thursday, hitting $78.46. 1,458,092 shares of the company’s stock were exchanged, compared to its average volume of 2,135,813. The company has a debt-to-equity ratio of 0.28, a current ratio of 1.41 and a quick ratio of 0.98. TE Connectivity has a fifty-two week low of $69.84 and a fifty-two week high of $108.23. The company has a market cap of $26.44 billion, a PE ratio of 13.99, a P/E/G ratio of 1.21 and a beta of 1.01.
TE Connectivity (NYSE:TEL) last posted its earnings results on Wednesday, October 31st. The electronics maker reported $1.35 EPS for the quarter, topping the consensus estimate of $1.33 by $0.02. TE Connectivity had a net margin of 17.69% and a return on equity of 20.06%. The business had revenue of $3.51 billion for the quarter, compared to the consensus estimate of $3.65 billion. During the same period last year, the company earned $1.25 EPS. The firm’s revenue was up 8.5% compared to the same quarter last year. Equities research analysts expect that TE Connectivity will post 5.7 EPS for the current year.
TE Connectivity declared that its Board of Directors has initiated a share buyback program on Friday, December 14th that permits the company to repurchase $1.50 billion in outstanding shares. This repurchase authorization permits the electronics maker to reacquire up to 5.9% of its stock through open market purchases. Stock repurchase programs are often a sign that the company’s board believes its shares are undervalued.
Several hedge funds and other institutional investors have recently modified their holdings of TEL. Capital Research Global Investors acquired a new position in shares of TE Connectivity in the 3rd quarter worth approximately $720,118,000. Nordea Investment Management AB acquired a new position in shares of TE Connectivity during the 3rd quarter valued at $217,202,000. Pictet Asset Management Ltd. acquired a new position in shares of TE Connectivity during the 3rd quarter valued at $205,498,000. Capital International Investors acquired a new position in shares of TE Connectivity during the 3rd quarter valued at $141,393,000. Finally, Credit Suisse AG lifted its position in shares of TE Connectivity by 207.2% during the 3rd quarter. Credit Suisse AG now owns 1,390,551 shares of the electronics maker’s stock valued at $122,270,000 after acquiring an additional 937,858 shares during the period. Hedge funds and other institutional investors own 91.51% of the company’s stock.
About TE Connectivity
TE Connectivity Ltd., together with its subsidiaries, manufactures and sells connectivity and sensors solutions in Europe, the Middle East, Africa, the AsiaPacific, and the Americas. The company operates through three segments: Transportation Solutions, Industrial Solutions, and Communications Solutions.
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