TE Connectivity (NYSE:TEL) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report released on Monday, January 8th. The firm presently has a $112.00 price objective on the electronics maker’s stock. Zacks Investment Research‘s price target indicates a potential upside of 11.88% from the stock’s current price.
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. Moreover, the stock has outperformed the industry average in a year. It expects transportation business to experience significant organic growth, fueled by rise in global auto production and impressive heavy truck business in key end markets. Further, its Communications and Industrial segments are witnessing strong performance, thus stoking growth. However on the negative side, sluggish industrial markets and derivative impact of lower oil prices are posing as major headwinds, thwarting growth. This apart, adverse currency fluctuations and high restructuring expenses might hurt the company’s performance.”
TEL has been the topic of a number of other reports. SunTrust Banks raised their target price on TE Connectivity to $90.00 and gave the company a “hold” rating in a research note on Thursday, November 2nd. They noted that the move was a valuation call. Royal Bank of Canada reiterated a “buy” rating and issued a $95.00 target price (up from $90.00) on shares of TE Connectivity in a research note on Monday, October 30th. Stifel Nicolaus reiterated a “buy” rating and issued a $87.00 target price on shares of TE Connectivity in a research note on Tuesday, October 17th. ValuEngine upgraded TE Connectivity from a “hold” rating to a “buy” rating in a research note on Sunday, December 31st. Finally, Wells Fargo & Co initiated coverage on TE Connectivity in a research note on Friday, November 10th. They issued an “outperform” rating and a $105.00 target price on the stock. One research analyst has rated the stock with a sell rating, two have assigned a hold rating and thirteen have issued a buy rating to the company’s stock. The stock presently has an average rating of “Buy” and a consensus target price of $159.31.
TE Connectivity (NYSE:TEL) last issued its quarterly earnings data on Wednesday, November 1st. The electronics maker reported $1.25 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $1.16 by $0.09. TE Connectivity had a net margin of 12.84% and a return on equity of 18.97%. The company had revenue of $3.46 billion during the quarter, compared to the consensus estimate of $3.28 billion. During the same quarter last year, the company earned $1.22 earnings per share. TE Connectivity’s revenue for the quarter was up 3.7% on a year-over-year basis. equities research analysts anticipate that TE Connectivity will post 5.27 EPS for the current year.
TE Connectivity announced that its Board of Directors has authorized a share repurchase plan on Friday, December 8th that authorizes the company to buyback $1.50 billion in outstanding shares. This buyback authorization authorizes the electronics maker to purchase shares of its stock through open market purchases. Stock buyback plans are typically an indication that the company’s leadership believes its shares are undervalued.
In related news, COO Joseph B. Donahue sold 1,238 shares of TE Connectivity 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 transaction, the chief operating officer now directly owns 52,134 shares of the company’s stock, valued at $4,860,452.82. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Also, insider Thomas J. Lynch sold 130,617 shares of TE Connectivity stock in a transaction dated Wednesday, November 1st. The stock was sold at an average price of $91.29, for a total value of $11,924,025.93. Following the transaction, the insider now directly owns 429,500 shares in the company, valued at $39,209,055. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 705,373 shares of company stock worth $65,870,755. Company insiders own 1.49% of the company’s stock.
A number of institutional investors and hedge funds have recently modified their holdings of TEL. Northwestern Mutual Wealth Management Co. increased its stake in TE Connectivity by 38.6% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 1,379 shares of the electronics maker’s stock worth $109,000 after purchasing an additional 384 shares in the last quarter. AllSquare Wealth Management LLC purchased a new position in TE Connectivity in the 3rd quarter worth about $113,000. Acrospire Investment Management LLC purchased a new position in TE Connectivity in the 2nd quarter worth about $126,000. Harfst & Associates Inc. increased its stake in TE Connectivity by 46.2% in the 2nd quarter. Harfst & Associates Inc. now owns 1,722 shares of the electronics maker’s stock worth $135,000 after purchasing an additional 544 shares in the last quarter. Finally, Robecosam AG purchased a new position in TE Connectivity in the 3rd quarter worth about $155,000. 90.16% of the stock is currently owned by hedge funds and other 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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