TE Connectivity (NYSE:TEL) Shares Gap Down – Time to Sell?

TE Connectivity Ltd. (NYSE:TEL) gapped down prior to trading on Wednesday . The stock had previously closed at $233.27, but opened at $226.79. TE Connectivity shares last traded at $230.7340, with a volume of 807,254 shares.

TE Connectivity News Summary

Here are the key news stories impacting TE Connectivity this week:

• Positive Sentiment: Q1 results beat expectations — TEL posted $2.72 EPS vs. $2.54 expected and revenue of ~$4.7B (up ~22% Y/Y), driven by Industrial and Transportation strength; results exceeded guidance. TE Connectivity announces first quarter results for fiscal year 2026
• Positive Sentiment: Company set Q2 FY2026 EPS guidance at $2.65 (single-point) which is above the consensus of $2.59 — management expects continued momentum into the quarter. MarketBeat: TE Connectivity earnings & guidance
• Positive Sentiment: Management attributes part of the stronger outlook to rising demand for AI-related tools and components, giving investors exposure to AI-driven spending in components and connectors. TE Connectivity forecasts upbeat second-quarter profit on strong AI tools demand
• Neutral Sentiment: Analyst/investor materials and the full earnings call transcript are available (slide deck and call), which will contain segment-level details and management commentary that could influence near-term analyst revisions. Earnings Call Transcript
• Negative Sentiment: Shares fell despite the beat and upbeat guidance — coverage notes the market reaction may reflect profit-taking after a strong run, the narrow single-point guidance offering limited upside surprises, and valuation/expectation risk. TEL Q1 Earnings Beat Estimates, Revenues Up Y/Y, Shares Fall

Wall Street Analysts Forecast Growth

TEL has been the topic of several research reports. Citigroup increased their price target on shares of TE Connectivity from $250.00 to $290.00 and gave the stock a “buy” rating in a report on Thursday, October 30th. Wall Street Zen upgraded TE Connectivity from a “buy” rating to a “strong-buy” rating in a report on Sunday, January 11th. Cowen reaffirmed a “buy” rating on shares of TE Connectivity in a research note on Monday, November 17th. The Goldman Sachs Group reiterated a “buy” rating and set a $304.00 price objective on shares of TE Connectivity in a research report on Thursday, January 15th. Finally, TD Cowen raised their target price on TE Connectivity from $220.00 to $275.00 and gave the stock a “buy” rating in a research note on Monday, November 17th. One analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating and five have given a Hold rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $248.23.

TE Connectivity Stock Up 0.6%

The stock has a market cap of $69.06 billion, a price-to-earnings ratio of 38.24, a PEG ratio of 1.89 and a beta of 1.24. The company has a quick ratio of 1.03, a current ratio of 1.56 and a debt-to-equity ratio of 0.38. The business’s fifty day moving average is $231.56 and its two-hundred day moving average is $218.63.

TE Connectivity (NYSE:TEL) last posted its quarterly earnings results on Wednesday, January 21st. The electronics maker reported $2.72 EPS for the quarter, topping the consensus estimate of $2.54 by $0.18. The business had revenue of $4.67 billion during the quarter, compared to the consensus estimate of $4.52 billion. TE Connectivity had a net margin of 10.67% and a return on equity of 21.18%. The company’s quarterly revenue was up 21.7% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $1.95 earnings per share. TE Connectivity has set its Q2 2026 guidance at 2.650-2.650 EPS. Equities analysts forecast that TE Connectivity Ltd. will post 8.05 earnings per share for the current fiscal year.

TE Connectivity Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, March 13th. Stockholders of record on Friday, February 20th will be given a dividend of $0.71 per share. The ex-dividend date of this dividend is Friday, February 20th. This represents a $2.84 dividend on an annualized basis and a dividend yield of 1.2%. TE Connectivity’s payout ratio is currently 46.18%.

Insider Activity at TE Connectivity

In other TE Connectivity news, CFO Heath A. Mitts sold 82,300 shares of the firm’s stock in a transaction that occurred on Monday, November 3rd. The shares were sold at an average price of $247.15, for a total transaction of $20,340,445.00. Following the sale, the chief financial officer owned 45,503 shares of the company’s stock, valued at approximately $11,246,066.45. This trade represents a 64.40% 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, EVP John S. Jenkins sold 25,021 shares of the business’s stock in a transaction on Monday, November 3rd. The shares were sold at an average price of $247.73, for a total transaction of $6,198,452.33. Following the completion of the transaction, the executive vice president directly owned 20,903 shares in the company, valued at $5,178,300.19. This represents a 54.48% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 0.60% of the stock is owned by company insiders.

Institutional Investors Weigh In On TE Connectivity

A number of institutional investors have recently bought and sold shares of the stock. Norges Bank purchased a new position in TE Connectivity in the 2nd quarter worth approximately $609,158,000. Valeo Financial Advisors LLC lifted its position in TE Connectivity by 39,846.0% in the 2nd quarter. Valeo Financial Advisors LLC now owns 1,775,598 shares of the electronics maker’s stock valued at $299,490,000 after purchasing an additional 1,771,153 shares during the last quarter. Arrowstreet Capital Limited Partnership boosted its position in TE Connectivity by 26,798.6% during the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 1,383,932 shares of the electronics maker’s stock worth $303,815,000 after acquiring an additional 1,378,787 shares during the period. Bank of America Corp DE increased its stake in shares of TE Connectivity by 27.5% during the second quarter. Bank of America Corp DE now owns 6,274,917 shares of the electronics maker’s stock valued at $1,058,390,000 after acquiring an additional 1,352,152 shares during the period. Finally, Dodge & Cox lifted its holdings in TE Connectivity by 6.3% in the 2nd quarter. Dodge & Cox now owns 17,039,803 shares of the electronics maker’s stock valued at $2,874,104,000 after acquiring an additional 1,017,323 shares during the last quarter. 91.43% of the stock is currently owned by hedge funds and other institutional investors.

About TE Connectivity

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.