TE Connectivity Ltd. (NYSE:TEL) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a note issued to investors on Monday.
According to Zacks, “TE Connectivity has a decent earnings surprise history, beating estimates thrice over the trailing four quarters, largely driven by strength of the SubCom businesses, along with other productivity improvements. However, sluggishness in industrial markets, oil & gas weakness and the derivative impact of lower oil prices hurt the company’s operations and are expected to remain formidable headwinds, going forward. Also, adverse currency fluctuations and high restructuring expenses have been straining the company’s results. Going forward, TE Connectivity believes that its industrial, data & devices, and communications businesses will continue to be impacted by the weakness in Chinese economy. The company also expects weakness in Communication segment to continue. Nevertheless, strong performance of the sensors & harsh environments business and a rebound in transportation business are expected to act as catalysts.”
Several other research firms have also weighed in on TEL. Deutsche Bank AG reissued a “hold” rating and issued a $65.00 price objective on shares of TE Connectivity in a research report on Wednesday, June 15th. Royal Bank Of Canada reissued a “buy” rating and issued a $66.00 price objective on shares of TE Connectivity in a research report on Friday, June 17th. Morgan Stanley reissued a “buy” rating on shares of TE Connectivity in a research report on Tuesday, September 20th. Finally, RBC Capital Markets reissued an “outperform” rating and issued a $65.00 price objective (up from $63.00) on shares of TE Connectivity in a research report on Thursday, July 21st. One research analyst has rated the stock with a sell rating, one has assigned a hold rating and three have assigned a buy rating to the company’s stock. The company currently has a consensus rating of “Hold” and an average price target of $64.33.
TE Connectivity (NYSE:TEL) opened at 64.54 on Monday. The firm has a market capitalization of $22.95 billion, a PE ratio of 9.42 and a beta of 1.39. The company’s 50-day moving average price is $62.36 and its 200 day moving average price is $60.62. TE Connectivity has a 12 month low of $51.70 and a 12 month high of $67.99.
TE Connectivity (NYSE:TEL) last announced its earnings results on Wednesday, July 20th. The company reported $1.08 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $1.03 by $0.05. The business earned $3.12 billion during the quarter, compared to analyst estimates of $3.13 billion. TE Connectivity had a return on equity of 16.72% and a net margin of 21.97%. TE Connectivity’s revenue for the quarter was up .1% compared to the same quarter last year. During the same period last year, the company earned $0.90 EPS. On average, equities research analysts predict that TE Connectivity will post $4.01 earnings per share for the current year.
The company also recently announced a quarterly dividend, which was paid on Friday, September 9th. Investors of record on Friday, August 26th were given a $0.37 dividend. This represents a $1.48 dividend on an annualized basis and a yield of 2.29%. The ex-dividend date of this dividend was Wednesday, August 24th. TE Connectivity’s payout ratio is 21.67%.
In other TE Connectivity news, COO Joseph B. Donahue sold 10,000 shares of TE Connectivity stock in a transaction dated Tuesday, August 30th. The stock was sold at an average price of $63.78, for a total transaction of $637,800.00. Following the completion of the transaction, the chief operating officer now owns 38,825 shares in the company, valued at approximately $2,476,258.50. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, insider James O’toole sold 13,925 shares of TE Connectivity stock in a transaction dated Monday, July 25th. The shares were sold at an average price of $61.40, for a total value of $854,995.00. The disclosure for this sale can be found here. 1.49% of the stock is owned by corporate insiders.
A number of institutional investors have recently added to or reduced their stakes in the stock. Benjamin F. Edwards & Company Inc. increased its position in TE Connectivity by 0.7% in the second quarter. Benjamin F. Edwards & Company Inc. now owns 2,594 shares of the company’s stock worth $148,000 after buying an additional 19 shares during the period. Mycio Wealth Partners LLC increased its position in TE Connectivity by 0.5% in the second quarter. Mycio Wealth Partners LLC now owns 5,558 shares of the company’s stock worth $317,000 after buying an additional 29 shares during the period. Macquarie Group Ltd. increased its position in TE Connectivity by 0.6% in the second quarter. Macquarie Group Ltd. now owns 9,302 shares of the company’s stock worth $531,000 after buying an additional 52 shares during the period. SOL Capital Management CO increased its position in TE Connectivity by 0.4% in the second quarter. SOL Capital Management CO now owns 15,739 shares of the company’s stock worth $899,000 after buying an additional 64 shares during the period. Finally, TRUE Private Wealth Advisors increased its position in TE Connectivity by 1.4% in the second quarter. TRUE Private Wealth Advisors now owns 7,460 shares of the company’s stock worth $426,000 after buying an additional 100 shares during the period. Institutional investors and hedge funds own 91.55% of the company’s stock.
TE Connectivity Company Profile
TE Connectivity Ltd. (TE Connectivity) is a technology company. The Company designs and manufactures connectivity and sensors solutions. It operates its business through three segments: Transportation Solutions, which offers various products, including terminals and connector systems and components, relays, circuit protection devices, sensors, and application tooling, among others; Industrial Solutions, which include terminals and connector systems and components, heat shrink tubing, relays, wire and cable, and Communications Solutions, which include terminals and connector systems and components, circuit protection devices, antennas, relays and heat shrink tubing.
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