TE Connectivity (NYSE:TEL) to Repurchase $2.50 billion in Outstanding Shares

TE Connectivity (NYSE:TEL) declared that its Board of Directors has initiated a share repurchase plan on Wednesday, October 30th, RTT News reports. The company plans to repurchase $2.50 billion in shares. This repurchase authorization allows the electronics maker to buy up to 5.4% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company’s board of directors believes its shares are undervalued.

TE Connectivity Price Performance

TE Connectivity stock opened at $147.42 on Friday. The stock has a market capitalization of $45.14 billion, a price-to-earnings ratio of 13.49, a PEG ratio of 1.92 and a beta of 1.33. TE Connectivity has a 52-week low of $116.01 and a 52-week high of $159.98. The company has a debt-to-equity ratio of 0.23, a quick ratio of 0.99 and a current ratio of 1.51. The stock’s 50 day moving average price is $148.00 and its two-hundred day moving average price is $148.39.

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 21.94% and a return on equity of 18.53%. The business had revenue of $4.07 billion for the quarter, compared to analyst estimates of $4 billion. During the same period in the prior year, the firm earned $1.78 earnings per share. TE Connectivity’s revenue was up .8% on a year-over-year basis. On average, equities analysts predict that TE Connectivity will post 7.57 earnings per share for the current year.

Analyst Upgrades and Downgrades

Several equities analysts have issued reports on TEL shares. HSBC cut shares of TE Connectivity from a “hold” rating to a “reduce” rating and set a $137.00 price target for the company. in a research report on Thursday. Wells Fargo & Company decreased their price objective on TE Connectivity from $155.00 to $153.00 and set an “equal weight” rating for the company in a report on Friday, September 20th. The Goldman Sachs Group cut their target price on TE Connectivity from $189.00 to $179.00 and set a “buy” rating on the stock in a report on Tuesday, October 1st. Truist Financial increased their price target on TE Connectivity from $151.00 to $156.00 and gave the company a “hold” rating in a research note on Thursday, July 25th. Finally, Robert W. Baird lifted their price objective on TE Connectivity from $162.00 to $170.00 and gave the stock an “outperform” rating in a research note on Thursday, July 25th. One research analyst has rated the stock with a sell rating, seven have given a hold rating and six have issued a buy rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of “Hold” and an average target price of $159.55.

About TE Connectivity

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.