John S. Jenkins, the Executive Vice President and General Counsel at TE Connectivity plc (NYSE:TEL), recently sold 40,800 common shares of the company. The shares were sold at a weighted average price of $155.49, resulting in a total transaction value of approximately $6.34 million. This sale followed the exercise of stock options at a price of $93.36 per share, which were converted into the same number of common shares. After these transactions, Jenkins holds 21,623 shares directly.
In other recent news, TE Connectivity revealed robust financial results for the fourth quarter and fiscal year 2024. The company's Q4 sales saw a 2% year-over-year increase, 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. Additionally, the company announced a noteworthy $2.5 billion expansion in its share repurchase program.
HSBC, however, issued a downgrade for TE Connectivity, moving its rating from Hold to Reduce and lowering the price target to $137 from $156, citing weaknesses in the company's transportation and industrial segments. The transportation solutions segment experienced a revenue decline of approximately 15%, with a year-over-year drop of 4% in the fourth quarter. The industrial segment also saw a reduction in revenue forecasts by roughly 5%.
Despite these challenges, TE Connectivity's communications subsegment shows promise, with HSBC increasing its revenue forecasts by about 9% due to robust demand related to artificial intelligence. The company also introduced a new 2-segment structure, merging Transportation and Industrial Solutions, and projects sales to double in the communications segment, particularly AI applications, in fiscal 2025. These developments reflect TE Connectivity's ongoing efforts to adapt and focus on growth markets.
InvestingPro Insights
As John S. Jenkins reduces his stake in TE Connectivity, investors may find value in examining the company's current financial position and market performance. According to InvestingPro data, TE Connectivity boasts a market capitalization of $47.13 billion, reflecting its significant presence in the connectivity and sensor solutions industry.
The company's P/E ratio stands at 14.97, suggesting a relatively modest valuation compared to some tech sector peers. This could indicate potential value for investors, especially considering TE Connectivity's solid revenue of $15.85 billion over the last twelve months as of Q4 2024.
InvestingPro Tips highlight that TE Connectivity's stock generally trades with low price volatility, which may appeal to investors seeking stability. This characteristic aligns with the company's steady dividend growth, which has seen a 10.17% increase over the past year, offering a current yield of 1.68%.
However, it's worth noting that another InvestingPro Tip points out that TE Connectivity suffers from weak gross profit margins. This is reflected in the company's gross profit margin of 34.43% for the last twelve months as of Q4 2024, which investors should monitor closely.
For those interested in a deeper analysis, InvestingPro offers additional tips and metrics that could provide further insights into TE Connectivity's financial health and market position. Investors can access these valuable resources to make more informed decisions about their investments in the company.
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