TE Connectivity Ltd. (NYSE:TEL), a global provider of connectors and sensors, disclosed today that it anticipates its last day of trading on the New York Stock Exchange (NYSE) will be Thursday, September 27, 2024. This move aligns with the company's previously announced plans to change its place of incorporation from Switzerland to Ireland. The transition is expected to be finalized by September 30, 2024.
Following this change, TE Connectivity plc's ordinary shares will commence trading on the NYSE under the same ticker symbol "TEL" when the market opens on September 30, 2024. The new CUSIP number for TE Connectivity plc's ordinary shares will be G87052109.
The company's announcement contains forward-looking statements that involve certain risks and uncertainties. These include potential delays or the possibility that the anticipated benefits of the change of incorporation may not fully materialize. Additionally, there are considerations such as the potential impact on the company's stock price, its status on stock exchanges and indices, and the adaptation to Irish corporate governance and regulatory frameworks.
In other recent news, TE Connectivity is undergoing significant changes. It recently announced executive transitions and a company reorganization. Steve Merkt, President of Transportation Solutions, will transition to an advisory role with Aaron Stucki succeeding him. The company is also restructuring its reporting segments into two primary divisions: Transportation Solutions and Industrial Solutions.
Evercore ISI has maintained its Outperform rating and $180 price target for TE Connectivity amidst these changes. Analysts from Wolfe Research also initiated coverage with an Outperform rating, expecting growth in the automotive sector and high-speed cable solutions for AI servers. Citi and Truist Securities, however, have maintained a neutral stance on the stock.
TE Connectivity's recent earnings results met sales expectations and surpassed earnings per share projections, generating a record $2 billion in free cash flow over the first three quarters. The company also expressed potential interest in future mergers and acquisitions aligning with its markets and technologies. These are among the recent developments for TE Connectivity.
InvestingPro Insights
As TE Connectivity Ltd. (NYSE:TEL) prepares for its transition to Ireland, current and prospective investors may find the following insights valuable. According to InvestingPro data, TE Connectivity boasts a robust market capitalization of $45.09 billion, underlining its significant presence in the industry. An attractive P/E ratio of 13.24, which drops even further to 12.58 when adjusted for the last twelve months as of Q3 2024, suggests that the stock may be undervalued relative to its earnings. This is further supported by a remarkably low PEG ratio of 0.18 for the same period, indicating potential for growth compared to its earnings momentum.
InvestingPro Tips highlight that TE Connectivity has been a consistent performer, with management actively buying back shares and a track record of raising its dividend for 14 consecutive years. Moreover, the company has maintained dividend payments for 18 consecutive years, which could be a sign of financial stability and a commitment to shareholder returns. For investors seeking additional insights, there are over 10 more InvestingPro Tips available, including analysts' upward earnings revisions for the upcoming period and the company's expected profitability this year, which can be accessed on the InvestingPro platform.
These financial metrics and strategic insights could be particularly relevant for shareholders considering the company's upcoming change in incorporation and trading venue. As TE Connectivity navigates these changes, its solid financial footing and positive analyst sentiment may reassure investors about the company's future prospects.
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