Terrence Curtin, the Chief Executive Officer and Director of TE Connectivity plc (NYSE:TEL), executed significant stock transactions on November 11, 2024. Curtin sold a total of 115,000 shares, valued at approximately $17.8 million. The shares were sold at prices ranging from $154.37 to $154.95 per share.
In addition to these sales, Curtin exercised stock options to acquire 115,000 shares at $76.66 per share, totaling around $8.8 million. Following these transactions, Curtin's direct ownership stands at 54,969 shares, with an additional 40,000 shares held indirectly through family trusts.
These transactions are part of Curtin's ongoing management of his holdings in the company, which recently underwent a structural change, becoming TE Connectivity plc, an Irish public limited company, from its previous incorporation in Switzerland.
In other recent news, TE Connectivity has reported strong financial results for the fourth quarter and fiscal year 2024. The company saw a 2% year-over-year increase in Q4 sales, reaching $4.1 billion, and a 10% rise in adjusted earnings per share (EPS) to $1.95. For the full fiscal year, sales were recorded at $15.8 billion with an adjusted EPS of $7.56, indicating a 12% increase. In addition, the company announced a significant $2.5 billion expansion in its share repurchase program.
Furthermore, TE Connectivity revealed the impending retirement of Senior Vice President and Corporate Controller Robert J. Ott and the appointment of his successor, Reuben M. Shaffer, set to take place on January 3, 2025. The company also stated that their 2025 Annual General Meeting of Shareholders is scheduled for March 12, 2025.
However, HSBC has downgraded TE Connectivity's stock from Hold to Reduce, citing weaknesses in the company's transportation and industrial segments. Despite this, HSBC is increasing its revenue forecasts by about 9% for the communications subsegment due to robust demand related to artificial intelligence. Recent developments also include TE Connectivity's introduction of a new 2-segment structure, merging Transportation and Industrial Solutions, with projected sales to double in fiscal 2025 for the Communications segment, particularly AI applications.
InvestingPro Insights
The recent stock transactions by TE Connectivity's CEO Terrence Curtin align with several key insights from InvestingPro. Despite the significant sale of shares, TE Connectivity remains a strong performer in the Electronic Equipment, Instruments & Components industry, with the stock trading near its 52-week high and showing a robust 24.54% total return over the past year.
InvestingPro data reveals that TE Connectivity boasts a market capitalization of $46.76 billion and trades at a P/E ratio of 14.8, which is relatively low compared to its growth prospects. This is further supported by an InvestingPro Tip indicating that the company is "Trading at a low P/E ratio relative to near-term earnings growth," suggesting potential undervaluation.
Another notable InvestingPro Tip highlights that "Management has been aggressively buying back shares," which could be seen as a vote of confidence in the company's future prospects. This shareholder-friendly approach is complemented by TE Connectivity's impressive dividend track record, having raised its dividend for 14 consecutive years and maintained payments for 18 years.
For investors seeking more comprehensive analysis, InvestingPro offers 12 additional tips for TE Connectivity, providing a deeper understanding of the company's financial health and market position.
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