Zacks Investment Research Upgrades TE Connectivity (TEL) to Hold

TE Connectivity (NYSE:TEL) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a report released on Monday.

According to Zacks, “TE Connectivity’s robust solutions portfolio continues to be the key driver of its top-line growth. Further, solid organic growth in TE Connectivity’s automotive, commercial transportation and sensor transportation businesses are aiding the performance of its transportation solutions. We believe the company’s strong progress on its strategic priorities is expected to benefit its business in the long run. However, the company has underperformed the industry it belongs to over a year. The intensifying competition in the electronic components market poses a severe pricing pressure and risk to its market share. Also, sluggish auto production in Europe and China is a concern.”

Other analysts have also recently issued reports about the stock. Royal Bank of Canada reissued a “buy” rating and set a $92.00 target price on shares of TE Connectivity in a report on Sunday, January 6th. Robert W. Baird reissued a “hold” rating and set a $79.00 target price on shares of TE Connectivity in a report on Sunday, January 6th. SunTrust Banks reissued a “hold” rating and set a $82.00 target price on shares of TE Connectivity in a report on Wednesday, October 31st. ValuEngine raised shares of TE Connectivity from a “sell” rating to a “hold” rating in a report on Tuesday, December 18th. Finally, Jefferies Financial Group initiated coverage on shares of TE Connectivity in a report on Tuesday, December 4th. They set a “hold” rating and a $84.00 target price on the stock. Six research analysts have rated the stock with a hold rating and five have given a buy rating to the company. TE Connectivity has an average rating of “Hold” and a consensus price target of $97.78.

TEL opened at $81.44 on Monday. The firm has a market capitalization of $27.25 billion, a P/E ratio of 14.52, a P/E/G ratio of 1.38 and a beta of 1.04. The company has a debt-to-equity ratio of 0.33, a quick ratio of 0.98 and a current ratio of 1.55. TE Connectivity has a 12-month low of $69.84 and a 12-month high of $106.00.

TE Connectivity (NYSE:TEL) last posted its quarterly earnings results on Wednesday, January 23rd. The electronics maker reported $1.29 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.28 by $0.01. The firm had revenue of $3.35 billion for the quarter, compared to analysts’ expectations of $3.38 billion. TE Connectivity had a net margin of 20.06% and a return on equity of 19.22%. The firm’s quarterly revenue was up .3% on a year-over-year basis. During the same period in the prior year, the company posted $1.40 earnings per share. As a group, equities research analysts anticipate that TE Connectivity will post 5.45 EPS for the current fiscal year.

TE Connectivity announced that its Board of Directors has authorized a share buyback program on Friday, December 14th that allows the company to buyback $1.50 billion in outstanding shares. This buyback authorization allows the electronics maker to repurchase up to 5.9% of its shares through open market purchases. Shares buyback programs are usually a sign that the company’s board believes its shares are undervalued.

In related news, CFO Heath A. Mitts sold 12,908 shares of the stock in a transaction dated Wednesday, February 6th. The shares were sold at an average price of $83.05, for a total value of $1,072,009.40. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. 0.80% of the stock is currently owned by corporate insiders.

Several hedge funds have recently added to or reduced their stakes in TEL. Riverview Trust Co acquired a new stake in shares of TE Connectivity in the 4th quarter worth about $25,000. Taylor Hoffman Wealth Management increased its holdings in shares of TE Connectivity by 432.8% in the 4th quarter. Taylor Hoffman Wealth Management now owns 357 shares of the electronics maker’s stock worth $27,000 after acquiring an additional 290 shares during the period. Oregon Public Employees Retirement Fund increased its holdings in shares of TE Connectivity by 7,370.9% in the 4th quarter. Oregon Public Employees Retirement Fund now owns 2,870,688 shares of the electronics maker’s stock worth $38,000 after acquiring an additional 2,832,263 shares during the period. Patten Group Inc. acquired a new stake in shares of TE Connectivity in the 4th quarter worth about $41,000. Finally, Bruderman Asset Management LLC increased its holdings in shares of TE Connectivity by 916.7% in the 4th quarter. Bruderman Asset Management LLC now owns 610 shares of the electronics maker’s stock worth $46,000 after acquiring an additional 550 shares during the period. 93.32% of the stock is currently owned by institutional investors and hedge funds.

About TE Connectivity

TE Connectivity Ltd., together with its subsidiaries, manufactures and sells connectivity and sensors solutions in Europe, the Middle East, Africa, the Asia–Pacific, and the Americas. The company operates through three segments: Transportation Solutions, Industrial Solutions, and Communications Solutions.

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