TE Connectivity (NYSE:TEL) Cut to “Reduce” at HSBC

HSBC downgraded shares of TE Connectivity (NYSE:TEL) from a hold rating to a reduce rating in a research note issued to investors on Thursday morning, Marketbeat Ratings reports. They currently have $137.00 target price on the electronics maker’s stock.

A number of other analysts have also weighed in on TEL. Vertical Research started coverage on TE Connectivity in a report on Tuesday, July 23rd. They set a “hold” rating and a $155.00 target price for the company. The Goldman Sachs Group decreased their price objective on TE Connectivity from $189.00 to $179.00 and set a “buy” rating for the company in a research note on Tuesday, October 1st. Wells Fargo & Company dropped their price objective on TE Connectivity from $155.00 to $153.00 and set an “equal weight” rating on the stock in a research report on Friday, September 20th. Hsbc Global Res upgraded shares of TE Connectivity to a “hold” rating in a report on Wednesday, July 24th. Finally, Robert W. Baird raised their price target on shares of TE Connectivity from $162.00 to $170.00 and gave the company an “outperform” rating in a report on Thursday, July 25th. One equities research analyst has rated the stock with a sell rating, six have issued a hold rating and six have issued a buy rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus price target of $159.55.

TE Connectivity Price Performance

TEL opened at $150.02 on Thursday. The company has a market capitalization of $45.59 billion, a price-to-earnings ratio of 14.61, a PEG ratio of 2.00 and a beta of 1.33. The company has a current ratio of 1.61, a quick ratio of 0.99 and a debt-to-equity ratio of 0.27. TE Connectivity has a 12-month low of $122.30 and a 12-month high of $159.98. The business’s fifty day simple moving average is $147.94 and its 200-day simple moving average is $148.49.

TE Connectivity (NYSE:TEL) last issued its earnings results on Wednesday, October 30th. The electronics maker reported $1.95 earnings per share (EPS) for the quarter, hitting the consensus estimate of $1.95. TE Connectivity had a net margin of 20.15% and a return on equity of 18.48%. The company had revenue of $4.07 billion for the quarter, compared to analysts’ expectations of $4 billion. During the same period in the prior year, the business earned $1.78 EPS. The firm’s quarterly revenue was up .8% on a year-over-year basis. On average, equities research analysts anticipate that TE Connectivity will post 8.16 earnings per share for the current fiscal year.

TE Connectivity declared that its Board of Directors has initiated a share buyback plan on Wednesday, October 30th that authorizes the company to buyback $2.50 billion in outstanding shares. This buyback authorization authorizes the electronics maker to buy up to 5.4% of its stock through open market purchases. Stock buyback plans are generally a sign that the company’s management believes its stock is undervalued.

Institutional Investors Weigh In On TE Connectivity

Several institutional investors and hedge funds have recently made changes to their positions in the stock. Price T Rowe Associates Inc. MD raised its stake in TE Connectivity by 54.9% in the 1st quarter. Price T Rowe Associates Inc. MD now owns 15,596,370 shares of the electronics maker’s stock worth $2,265,218,000 after acquiring an additional 5,526,230 shares during the last quarter. Ameriprise Financial Inc. increased its holdings in shares of TE Connectivity by 26.2% in the second quarter. Ameriprise Financial Inc. now owns 6,280,632 shares of the electronics maker’s stock valued at $944,791,000 after purchasing an additional 1,304,199 shares during the period. Dimensional Fund Advisors LP raised its stake in shares of TE Connectivity by 7.7% in the second quarter. Dimensional Fund Advisors LP now owns 3,118,636 shares of the electronics maker’s stock worth $469,113,000 after purchasing an additional 223,842 shares during the last quarter. Pzena Investment Management LLC lifted its holdings in shares of TE Connectivity by 9.3% during the first quarter. Pzena Investment Management LLC now owns 2,798,532 shares of the electronics maker’s stock worth $406,459,000 after purchasing an additional 238,370 shares during the period. Finally, First Pacific Advisors LP boosted its position in TE Connectivity by 0.4% in the first quarter. First Pacific Advisors LP now owns 2,776,505 shares of the electronics maker’s stock valued at $403,260,000 after buying an additional 10,167 shares during the last quarter. 91.43% of the stock is currently owned by institutional investors and hedge funds.

TE Connectivity Company Profile

TE Connectivity Ltd., together with its subsidiaries, manufactures and sells connectivity and sensor 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.