TE Connectivity (NYSE:TEL) to Repurchase $3.00 billion in Stock

TE Connectivity (NYSE:TEL) announced that its Board of Directors has initiated a share repurchase program on Wednesday, March 11th, RTT News reports. The company plans to buyback $3.00 billion in outstanding shares. This buyback authorization permits the electronics maker to purchase up to 5% of its stock through open market purchases. Stock buyback programs are typically a sign that the company’s leadership believes its stock is undervalued.

TE Connectivity Price Performance

Shares of TEL traded up $2.36 during mid-day trading on Wednesday, reaching $205.31. The company had a trading volume of 1,572,757 shares, compared to its average volume of 2,218,265. The company has a market capitalization of $60.24 billion, a price-to-earnings ratio of 29.63, a P/E/G ratio of 1.54 and a beta of 1.23. The company has a debt-to-equity ratio of 0.37, a quick ratio of 1.07 and a current ratio of 1.65. The company’s 50 day simple moving average is $226.80 and its 200 day simple moving average is $225.92. TE Connectivity has a 1-year low of $116.30 and a 1-year high of $250.67.

TE Connectivity (NYSE:TEL) last issued its quarterly earnings data 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 business had revenue of $4.67 billion during the quarter, compared to the consensus estimate of $4.52 billion. During the same quarter in the prior year, the firm earned $1.95 EPS. The firm’s revenue was up 21.7% compared to the same quarter last year. TE Connectivity has set its Q2 2026 guidance at 2.650-2.650 EPS. Analysts expect that TE Connectivity will post 8.05 EPS for the current year.

TE Connectivity Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, March 13th. Stockholders of record on Friday, February 20th will be paid a $0.71 dividend. This represents a $2.84 dividend on an annualized basis and a dividend yield of 1.4%. The ex-dividend date is Friday, February 20th. TE Connectivity’s dividend payout ratio is presently 40.98%.

Analyst Ratings Changes

TEL has been the topic of several recent analyst reports. Weiss Ratings raised shares of TE Connectivity from a “hold (c+)” rating to a “buy (b)” rating in a report on Friday, February 6th. Barclays increased their price target on shares of TE Connectivity from $297.00 to $302.00 and gave the stock an “overweight” rating in a research report on Friday, January 23rd. Oppenheimer boosted their price objective on shares of TE Connectivity from $270.00 to $285.00 and gave the company an “outperform” rating in a research report on Friday, February 13th. UBS Group upped their target price on TE Connectivity from $280.00 to $283.00 and gave the stock a “buy” rating in a research note on Wednesday, January 14th. Finally, TD Cowen reaffirmed a “buy” rating on shares of TE Connectivity in a report on Monday, November 17th. One investment analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and four have given a Hold rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $251.93.

Insider Activity at TE Connectivity

In other TE Connectivity news, insider Shadrak W. Kroeger sold 9,400 shares of the stock in a transaction dated Monday, March 2nd. The stock was 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 directly owned 25,976 shares in the company, valued at approximately $5,780,179.52. This trade represents a 26.57% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, SVP Reuben M. Shaffer sold 1,425 shares of the business’s stock in a transaction dated Friday, February 13th. The stock was sold at an average price of $234.23, for a total value of $333,777.75. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 32,945 shares of company stock valued at $7,528,616 in the last 90 days. 0.60% of the stock is owned by corporate insiders.

TE Connectivity Company Profile

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.