Axa S.A. significantly increased its investment in TE Connectivity Ltd. by acquiring an additional 236,444 shares during the second quarter of 2023. This move raised Axa’s total holdings in the electronics manufacturer to 569,419 shares, valued at approximately $96,044,000 as of the most recent filing with the Securities and Exchange Commission on November 3, 2023.
Several other institutional investors also adjusted their positions in TE Connectivity, further reflecting growing interest in the company. Notably, Lombard Odier Asset Management USA Corp established a new position in TE Connectivity worth about $211,000 during the second quarter. State Street Corp increased its stake by 0.8%, now owning 12,928,733 shares valued at approximately $2,180,693,000 after acquiring an additional 100,040 shares. Additionally, Daiwa Securities Group Inc. boosted its holdings by 17.6%, resulting in a total of 63,826 shares valued at $10,765,000.
Hedge funds and institutional investors collectively own 91.43% of TE Connectivity’s stock, reflecting strong institutional confidence in the company’s performance.
“The ongoing investments from major stakeholders demonstrate robust confidence in TE Connectivity’s growth potential,” commented a market analyst.
In terms of insider trading activity, TE Connectivity’s Executive Vice President, John S. Jenkins, sold 25,021 shares on November 3, 2023, at an average price of $247.73, totaling approximately $6,198,452.33. Following this transaction, Jenkins retained 20,903 shares valued at around $5,178,300.19, marking a 54.48% reduction in his position.
Similarly, Chief Financial Officer Heath A. Mitts sold 82,300 shares on the same date at an average price of $247.15, resulting in a total value of $20,340,445.00. Mitts now holds 45,503 shares valued at approximately $11,246,066.45, reflecting a 64.40% decline in his ownership.
TE Connectivity recently announced its quarterly earnings, reporting earnings per share of $2.44 for the quarter ending October 29, 2023. This figure exceeded analysts’ expectations of $2.29 by $0.15. The company generated revenue of $4.75 billion, surpassing the anticipated $4.57 billion. This represents a 16.7% increase in revenue compared to the same quarter in the previous year.
Looking ahead, TE Connectivity has set its Q1 2026 guidance at $2.53 EPS, and analysts forecast the company to post $8.05 earnings per share for the current year.
In addition to financial performance, TE Connectivity also disclosed a quarterly dividend of $0.71 per share, scheduled for payment on December 12, 2023. Shareholders of record on November 21, 2023, will receive this dividend, which represents an annualized amount of $2.84 and a yield of 1.2%.
Analysts have recently updated their price targets for TE Connectivity shares. Evercore ISI raised its target from $250.00 to $260.00, rating the stock as “outperform.” Wells Fargo & Company increased its objective from $215.00 to $241.00, maintaining an “equal weight” rating. Conversely, Truist Financial lowered its target from $255.00 to $239.00, advising a “hold” rating.
In a positive note, Barclays raised its price target from $277.00 to $297.00, maintaining an “overweight” rating. Currently, the stock has an average rating of “Moderate Buy” with a target price of $244.46 according to MarketBeat.
TE Connectivity Ltd., headquartered in Switzerland, manufactures and sells connectivity and sensor solutions globally, operating through three primary segments: Transportation Solutions, Industrial Solutions, and Communications Solutions. The company’s diverse portfolio positions it well to capitalize on the growing demand for electronic components across various industries.
