TE Connectivity Ltd. (NYSE: TEL) stock fell -3.06% on Friday to $116.52 against a previous-day closing price of $120.20. With 1.7 million shares changed hands, the volume of the stock remained heavier than its average volume of 1.38 million shares. During the session, the Electronic Components company that operates in wider Technology sector, reached to the highest price of $120.17 whereas the lowest price it dropped to was $115.99. The 52-week range on TEL shows that it touched its highest point at $166.44 and its lowest point at $107.12 during that stretch. It currently has a 1-year price target of $146.67. With its current market cap of 37.74 billion, TEL has annualized dividend of $2.24 while the current yield stands at 1.92%. Beta for the stock currently stands at 1.31.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of TEL was down-trending over the past week, with a drop of -6.24%, but this was down by -10.62% over a month. Three-month performance surged to 0.80% while six-month performance fell -9.84%. The stock lost -17.09% in the past year, while it has lost -27.78% so far this year. A look at the trailing 12-month EPS for TEL yields 7.64 with Next year EPS estimates of 7.67. For the next quarter, that number is 1.86. This implies an EPS growth rate of 968.00% for this year and 5.52% for next year. EPS is expected to grow by 10.36% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 6.20%.
Float and Shares Shorts:
At present, 322.00 million TEL shares are outstanding with a float of 319.26 million shares on hand for trading. On Jul 14, 2022, short shares totaled 2.97 million, which was 0.90% higher than short shares on Jun 14, 2022. In addition to Mr. Terrence R. Curtin CPA as the firm’s CEO & Exec. Director, Mr. Heath A. Mitts serves as its CFO, Exec. VP & Exec. Director.
Through their ownership of 99.53% of TEL’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 63.30% of TEL, in contrast to 30.85% held by mutual funds. Shares owned by individuals account for 0.46%. As the largest shareholder in TEL with 8.33% of the stake, The Vanguard Group, Inc. holds 26,632,946 shares worth 26,632,946. A second-largest stockholder of TEL, T. Rowe Price Associates, Inc., holds 25,220,247 shares, controlling over 7.89% of the firm’s shares. Capital Research & Management Co is the third largest shareholder in TEL, holding 18,915,729 shares or 5.91% stake. With a 2.98% stake in TEL, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 9,543,053 shares are owned by the mutual fund manager. The T Rowe Price Capital Appreciation, which owns about 2.96% of TEL stock, is the second-largest Mutual Fund holder. It holds 9,455,777 shares valued at 1.19 billion. Dodge & Cox Stock Fund holds 2.70% of the stake in TEL, owning 8,647,675 shares worth 1.09 billion.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for TEL since 17 analysts follow the stock currently. There are 9 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 6 believe that the stock is worth HOLDING, 2 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With TEL analysts setting a high price target of $172.00 and a low target of $124.00, the average target price over the next 12 months is $146.80. Based on these targets, TEL could surge 47.61% to reach the target high and rise by 6.42% to reach the target low. Reaching the average price target will result in a growth of 25.99% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. TEL will report FY 2022 earnings on 11/02/2022. Analysts have provided yearly estimates in a range of $7.38 being high and $7.27 being low. For TEL, this leads to a yearly average estimate of $7.30. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. TE Connectivity Ltd. surprised analysts by $0.11 when it reported $1.86 EPS against a consensus estimate of $1.75. The surprise factor in the prior quarter was $0.11. Based on analyst estimates, the high estimate for the next quarter is $1.95 and the low estimate is $1.84. The average estimate for the next quarter is thus $1.86.
Summary of Insider Activity:
Insiders traded TEL stock several times over the past three months with 3 Buys and 5 Sells. In these transactions, 100,929 shares were bought while 103,919 shares were sold. The number of buy transactions has increased to 28 while that of sell transactions has risen to 38 over the past year. The total number of shares bought during that period was 243,364 while 222,211 shares were sold.