TE Connectivity (NYSE:TEL) Downgraded to “Hold” Rating by Zacks Research

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

A number of other research analysts also recently issued reports on the stock. Truist Financial boosted their price objective on shares of TE Connectivity from $240.00 to $244.00 and gave the company a “hold” rating in a research report on Thursday, January 22nd. UBS Group lifted their target price on shares of TE Connectivity from $280.00 to $283.00 and gave the company a “buy” rating in a research note on Wednesday, January 14th. Oppenheimer boosted their price target 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. Wall Street Zen raised shares of TE Connectivity from a “buy” rating to a “strong-buy” rating in a research note on Sunday, January 11th. Finally, Barclays raised their price objective on shares of TE Connectivity from $297.00 to $302.00 and gave the stock an “overweight” rating in a report on Friday, January 23rd. Twelve analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company’s stock. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus target price of $251.93.

TE Connectivity Price Performance

Shares of TEL stock opened at $205.99 on Monday. The company has a debt-to-equity ratio of 0.37, a quick ratio of 1.07 and a current ratio of 1.65. TE Connectivity has a fifty-two week low of $116.30 and a fifty-two week high of $250.67. The firm has a market cap of $60.44 billion, a P/E ratio of 29.72, a P/E/G ratio of 1.53 and a beta of 1.23. The business’s 50 day moving average price is $221.16 and its 200-day moving average price is $225.64.

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

TE Connectivity Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, June 12th. Stockholders of record on Friday, May 22nd will be issued a dividend of $0.78 per share. This is a boost from TE Connectivity’s previous quarterly dividend of $0.71. The ex-dividend date is Friday, May 22nd. This represents a $3.12 dividend on an annualized basis and a dividend yield of 1.5%. TE Connectivity’s dividend payout ratio (DPR) is presently 40.98%.

TE Connectivity announced that its board has authorized a share buyback program on Wednesday, March 11th that allows the company to repurchase $3.00 billion in outstanding shares. This repurchase authorization allows the electronics maker to repurchase up to 5% of its shares through open market purchases. Shares repurchase programs are generally a sign that the company’s board of directors believes its shares are undervalued.

Insider Buying and Selling

In other TE Connectivity news, SVP Reuben M. Shaffer sold 1,425 shares of the company’s stock in a transaction dated Friday, February 13th. The shares were sold at an average price of $234.23, for a total value of $333,777.75. The sale was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, EVP John S. Jenkins sold 6,155 shares of the firm’s stock in a transaction that occurred on Monday, February 9th. The shares were sold at an average price of $222.81, for a total transaction of $1,371,395.55. Following the transaction, the executive vice president directly owned 21,810 shares of the company’s stock, valued at $4,859,486.10. This represents a 22.01% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 32,945 shares of company stock worth $7,528,616 in the last three months. 0.60% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in TEL. Kohmann Bosshard Financial Services LLC purchased a new position in shares of TE Connectivity in the 4th quarter worth about $25,000. Caitlin John LLC bought a new position in TE Connectivity during the third quarter valued at approximately $28,000. Aster Capital Management DIFC Ltd bought a new position in shares of TE Connectivity during the 3rd quarter valued at $29,000. Caldwell Trust Co bought a new position in TE Connectivity in the second quarter valued at about $31,000. Finally, Geneos Wealth Management Inc. increased its position in shares of TE Connectivity by 189.6% during the 2nd quarter. Geneos Wealth Management Inc. now owns 194 shares of the electronics maker’s stock valued at $33,000 after purchasing an additional 127 shares during the last quarter. Institutional investors own 91.43% of the company’s stock.

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.