Zacks Investment Research upgraded shares of TE Connectivity (NYSE:TEL) from a sell rating to a hold rating in a research report sent to investors on Thursday morning.
According to Zacks, “TE Connectivity strong progress on its strategic priorities is expected to benefit its business in the long run. Further, its well-performing industrial and communications solutions portfolio is a major positive. Notably, the stock has outperformed the industry it belongs to over a year. However, intensifying competition in the electronic components market poses a severe pricing pressure and risk to its market share. The company is currently suffering from end market fluctuations due to which the company has provided weak guidance for the current quarter. Also, sluggish auto production in Europe and China remains a concern for the company’s transportation solutions segment.”
Several other research firms have also issued reports on TEL. Morgan Stanley reduced their target price on shares of TE Connectivity from $107.00 to $102.00 and set an overweight rating for the company in a research note on Wednesday, October 3rd. SunTrust Banks reiterated a hold rating and issued a $82.00 target price on shares of TE Connectivity in a research note on Wednesday, October 31st. Robert W. Baird lowered shares of TE Connectivity from an outperform rating to a neutral rating in a research note on Monday, October 1st. Royal Bank of Canada set a $103.00 target price on shares of TE Connectivity and gave the stock a buy rating in a research note on Monday, October 29th. Finally, ValuEngine lowered shares of TE Connectivity from a hold rating to a sell rating in a research note on Wednesday, October 3rd. Six analysts have rated the stock with a hold rating and seven have issued a buy rating to the stock. TE Connectivity presently has a consensus rating of Buy and an average price target of $101.27.
TE Connectivity (NYSE:TEL) last posted its earnings results on Wednesday, October 31st. The electronics maker reported $1.35 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $1.33 by $0.02. TE Connectivity had a net margin of 17.69% and a return on equity of 20.06%. The firm had revenue of $3.51 billion during the quarter, compared to analyst estimates of $3.65 billion. During the same quarter in the prior year, the business posted $1.25 EPS. The business’s revenue was up 8.5% compared to the same quarter last year. On average, research analysts anticipate that TE Connectivity will post 5.7 EPS for the current fiscal year.
TE Connectivity declared that its Board of Directors has authorized a share buyback program on Friday, December 14th that authorizes the company to repurchase $1.50 billion in outstanding shares. This repurchase authorization authorizes the electronics maker to purchase up to 5.9% of its shares through open market purchases. Shares repurchase programs are often a sign that the company’s board believes its shares are undervalued.
Large investors have recently modified their holdings of the stock. HPM Partners LLC boosted its holdings in shares of TE Connectivity by 43.5% in the 2nd quarter. HPM Partners LLC now owns 5,697 shares of the electronics maker’s stock worth $513,000 after buying an additional 1,728 shares during the last quarter. Jefferies Group LLC boosted its holdings in shares of TE Connectivity by 14.6% in the 3rd quarter. Jefferies Group LLC now owns 176,367 shares of the electronics maker’s stock worth $15,508,000 after buying an additional 22,499 shares during the last quarter. AMP Capital Investors Ltd boosted its holdings in shares of TE Connectivity by 6.4% in the 3rd quarter. AMP Capital Investors Ltd now owns 180,245 shares of the electronics maker’s stock worth $15,879,000 after buying an additional 10,882 shares during the last quarter. Advisors Asset Management Inc. boosted its holdings in shares of TE Connectivity by 1,066.6% in the 2nd quarter. Advisors Asset Management Inc. now owns 7,233 shares of the electronics maker’s stock worth $498,000 after buying an additional 6,613 shares during the last quarter. Finally, Morgan Stanley boosted its holdings in shares of TE Connectivity by 22.6% in the 2nd quarter. Morgan Stanley now owns 1,747,507 shares of the electronics maker’s stock worth $157,381,000 after buying an additional 322,488 shares during the last quarter. 91.51% of the stock is currently owned by institutional investors.
TE Connectivity Company Profile
TE Connectivity Ltd., together with its subsidiaries, manufactures and sells connectivity and sensors solutions in Europe, the Middle East, Africa, the AsiaPacific, and the Americas. The company operates through three segments: Transportation Solutions, Industrial Solutions, and Communications Solutions.
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