Growth Story Still Intact For TE Connectivity Ltd. (TEL)

Capital Research & Management Co has recently announced that it has increased stake in TE Connectivity Ltd. (NYSE:TEL) by 53.28%. After grabbing 34.79 million shares, the institutional investor is now in possession of 12.09 million shares of the Technology Company. The new investment brought the stake of investor firm to 10.99% having worth around $4.26 billion. Moreover, SSgA Funds Management, Inc. increased its share by 2.31 million to have a control over 14.15 million shares. And T. Rowe Price Associates, Inc. raised its holdings to 0.51 million shares by acquiring 8.5 million shares or 2.69% of the stake.

TE Connectivity Ltd. (TEL) concluded trading on 05/24/23 at a closing price of $118.75, with 1.43 million shares of worth about $169.55 million changed hands on the day. Half year performance of the stock remained negative as price took a plunge of -4.76% during that period and on Wednesday the price saw a loss of about -2.80%. Currently the company’s common shares owned by public are about 316.00M shares, out of which, 312.26M shares are available for trading.

A deeper look into what the analysts at Wall Street are thinking about the price target of this stock provides us with the following: 19 analysts are covering the TEL stock and their offered price forecasts bring an average price target of $140.23. Over the next 12 months, analysts forecasted that the stock’s price could jump as high as $160.00 and could fall to a lowest price of $115.00. The stock’s current price level is 14.51% above of average price target set by the analysts, while a rise to estimated low would result in loss of -3.26% for the stock. However, touching the estimated high of $160.00 would mean a gain of 25.78% for the stock.

According to filings with the U.S. Securities and Exchange Commission (SEC), insiders took part in trade of the company’s stock for 67 times over the past 12 months. They bought 387,724 shares in 30 of the transactions. In 37 selling transactions, insiders dumped 351,005 shares.

Vanguard Total Stock Market ETF, Dodge & Cox Stock Fund, and Washington Mutual Investors Fund are the top 3 mutual funds which are holding stakes in TE Connectivity Ltd. Vanguard Total Stock Market ETF is currently holding 9.83 million shares of worth totaling $1.2 billion. The company recently came buying 19260.0 shares which brought its stake up to 3.11% of the company’s outstanding shares. Washington Mutual Investors Fund, after buying 7.66 million shares, have now control over 2.42% of the stake in the company. It holds 3.93 million shares of worth $937.36 million.

TE Connectivity Ltd. (NYSE: TEL) started trading at $121.04, below -$1.13 from concluding price of the previous day. However, the stock later moved at a day high price of 121.08, or with a loss of -2.80%. Stock saw a price change of -2.69% in past 5 days and over the past one month there was a price change of -4.37%. Year-to-date (YTD), TEL shares are showing a performance of 3.44% which decreased to -3.96% when we look at its performance for past 12 months. Over the period of past 52 weeks, stock dropped to lowest price of $104.76 but also hit the highest price of $138.24 during that period. The average intraday trading volume for TE Connectivity Ltd. shares is 1.51 million. The stock is currently trading -2.51% below its 20-day simple moving average (SMA20), while that difference is down -4.55% for SMA50 and it goes to -3.91% lower than SMA200.

Capital Research & Management Co acquired 34.79 million shares of TE Connectivity Ltd. having value of about $4.26 billion. Data submitted at the U.S SEC by Capital Research & Management Co revealed that the firm now holds 12.09 million shares in the company valued at close to $1436012518.75, or have control over 53.28% stake in the company. TE Connectivity Ltd. (NYSE: TEL) currently have 316.00M outstanding shares and institutions hold larger chunk of about 95.50% of that. Holding of mutual funds in the company is about 31.62% while other institutional holders and individual stake holders have control over 64.36% and 0.47% of the stake respectively.

The stock has a current market capitalization of $37.12B and its 3Y-monthly beta is at 1.31. PE ratio of stock for trailing 12 months is 17.93, while it has posted earnings per share of $6.62 in the same period. Its PEG reads 1.63 and has Quick Ratio of 1.10 while making debt-to-equity ratio of 0.38. Volatility of a stock is a metric used to know how much the price of that stock is under influence and for TEL, volatility over the week remained 1.57% while standing at 1.71% over the month.

Analysts are in expectations that TE Connectivity Ltd. (TEL) stock would likely to be making an EPS of $1.66 in the current quarter, while forecast for next quarter EPS is $1.73 and it is $7.51 for next year. For the current quarter EPS, analysts have given the company a lowest target $1.62 which is $1.71 at the higher side of the target for the same. When we compare those targets with actual EPS, we find that company posted an EPS of $1.86 in the same quarter a year ago. Stock’s fiscal year EPS is expected to rise by 10.30% while it is estimated to increase by 15.19% in next year. EPS is likely to shrink at an annualized rate of 11.00% for next 5-years, compared to annual growth of 11.70% made by the stock over the past 5-years.

Analysts at 19 brokerage firms have issued recommendations for the TE Connectivity Ltd. (TEL)’s stock and average of those rates the stock at a “Moderate Buy” and assign it a score of 2.40. Out of those 19 Wall Street analysts, 8 recommended a “Buy” rating, while 9 were in favor recommending the stock as a “Hold” and 0 analyst recommended the stock as “Sell”.