TE Connectivity (NYSE:TEL) Shares Gap Down – Time to Sell?

TE Connectivity Ltd. (NYSE:TEL) shares gapped down before the market opened on Wednesday . The stock had previously closed at $233.27, but opened at $226.79. TE Connectivity shares last traded at $230.7340, with a volume of 807,254 shares traded.

Key Headlines Impacting TE Connectivity

Here are the key news stories impacting TE Connectivity this week:

• Positive Sentiment: Q1 results beat expectations — TEL posted $2.72 EPS vs. $2.54 expected and revenue of ~$4.7B (up ~22% Y/Y), driven by Industrial and Transportation strength; results exceeded guidance. TE Connectivity announces first quarter results for fiscal year 2026
• Positive Sentiment: Company set Q2 FY2026 EPS guidance at $2.65 (single-point) which is above the consensus of $2.59 — management expects continued momentum into the quarter. MarketBeat: TE Connectivity earnings & guidance
• Positive Sentiment: Management attributes part of the stronger outlook to rising demand for AI-related tools and components, giving investors exposure to AI-driven spending in components and connectors. TE Connectivity forecasts upbeat second-quarter profit on strong AI tools demand
• Neutral Sentiment: Analyst/investor materials and the full earnings call transcript are available (slide deck and call), which will contain segment-level details and management commentary that could influence near-term analyst revisions. Earnings Call Transcript
• Negative Sentiment: Shares fell despite the beat and upbeat guidance — coverage notes the market reaction may reflect profit-taking after a strong run, the narrow single-point guidance offering limited upside surprises, and valuation/expectation risk. TEL Q1 Earnings Beat Estimates, Revenues Up Y/Y, Shares Fall

Analyst Ratings Changes

Several research analysts have weighed in on TEL shares. Zacks Research lowered TE Connectivity from a “strong-buy” rating to a “hold” rating in a research report on Monday, December 29th. Barclays boosted their price target on TE Connectivity from $277.00 to $297.00 and gave the company an “overweight” rating in a research note on Friday, November 21st. The Goldman Sachs Group reiterated a “buy” rating and set a $304.00 target price on shares of TE Connectivity in a research report on Thursday, January 15th. Truist Financial lifted their price objective on TE Connectivity from $239.00 to $240.00 and gave the company a “hold” rating in a report on Friday, December 19th. Finally, Weiss Ratings raised shares of TE Connectivity from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Thursday, January 8th. One investment analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating and five have assigned a Hold rating to the stock. Based on data from MarketBeat, TE Connectivity currently has an average rating of “Moderate Buy” and a consensus price target of $248.23.

TE Connectivity Stock Up 0.6%

The firm has a market cap of $69.06 billion, a P/E ratio of 38.24, a P/E/G ratio of 1.89 and a beta of 1.24. The business has a fifty day moving average of $231.56 and a 200 day moving average of $218.63. The company has a quick ratio of 1.03, a current ratio of 1.56 and a debt-to-equity ratio of 0.38.

TE Connectivity (NYSE:TEL) last issued its earnings results on Wednesday, January 21st. The electronics maker reported $2.72 EPS for the quarter, beating the consensus estimate of $2.54 by $0.18. The firm had revenue of $4.67 billion during the quarter, compared to the consensus estimate of $4.52 billion. TE Connectivity had a net margin of 10.67% and a return on equity of 21.18%. The business’s quarterly revenue was up 21.7% on a year-over-year basis. During the same quarter in the prior year, the firm earned $1.95 earnings per share. TE Connectivity has set its Q2 2026 guidance at 2.650-2.650 EPS. On average, equities research analysts predict that TE Connectivity Ltd. will post 8.05 EPS for the current year.

TE Connectivity Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, March 13th. Shareholders of record on Friday, February 20th will be paid a $0.71 dividend. This represents a $2.84 dividend on an annualized basis and a yield of 1.2%. The ex-dividend date of this dividend is Friday, February 20th. TE Connectivity’s payout ratio is presently 46.18%.

Insider Transactions at TE Connectivity

In other news, EVP John S. Jenkins sold 25,021 shares of the company’s stock in a transaction that occurred on Monday, November 3rd. The shares were sold at an average price of $247.73, for a total value of $6,198,452.33. Following the completion of the transaction, the executive vice president owned 20,903 shares in the company, valued at $5,178,300.19. This represents a 54.48% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO Heath A. Mitts sold 82,300 shares of the stock in a transaction dated Monday, November 3rd. The stock was sold at an average price of $247.15, for a total value of $20,340,445.00. Following the transaction, the chief financial officer owned 45,503 shares of the company’s stock, valued at approximately $11,246,066.45. This trade represents a 64.40% decrease in their position. The disclosure for this sale is available in the SEC filing. Company insiders own 0.60% of the company’s stock.

Hedge Funds Weigh In On TE Connectivity

Large investors have recently modified their holdings of the business. Princeton Global Asset Management LLC acquired a new position in TE Connectivity during the second quarter valued at approximately $26,000. Caitlin John LLC bought a new stake in TE Connectivity during the third quarter worth $28,000. Aster Capital Management DIFC Ltd acquired a new stake in TE Connectivity in the third quarter valued at $29,000. Neo Ivy Capital Management acquired a new position in shares of TE Connectivity during the 2nd quarter worth about $30,000. Finally, Salomon & Ludwin LLC raised its holdings in shares of TE Connectivity by 58.9% in the 2nd quarter. Salomon & Ludwin LLC now owns 178 shares of the electronics maker’s stock valued at $31,000 after purchasing an additional 66 shares during the period. 91.43% of the stock is currently owned by institutional investors and hedge funds.

About TE Connectivity

TE Connectivity (NYSE: TEL) is a global industrial technology company that designs and manufactures connectivity and sensor solutions used to enable the flow of power and data in a wide range of applications. Its product portfolio includes electrical connectors, cable and wire harness assemblies, sensors, relays and switches, fiber-optic and coaxial interconnects, and other passive and active components that provide mechanical and electrical connections in complex systems.

The company’s products and engineered solutions serve diverse end markets such as automotive and transportation, industrial equipment, data communications and networks, aerospace and defense, medical devices, and energy.