In a recent transaction, Aaron Kyle Stucki, the President of Communications Solutions at TE Connectivity Ltd. (NYSE:TEL), sold 5,000 shares of the company's stock, netting a total of $750,000. The shares were sold at a price of $150 each on May 15, 2024. This sale was conducted in accordance with a pre-arranged trading plan, known as a 10b5-1 plan, which Stucki had adopted on August 22, 2023.
On the same day, Stucki also acquired 5,000 shares at a price of $66.74 per share, amounting to a total transaction value of $333,700. This transaction was part of an option exercise, which is a right to buy shares at a predetermined price. Following these transactions, Stucki's direct ownership in TE Connectivity Ltd. common shares was adjusted to 20,533 shares.
TE Connectivity Ltd., which operates under the industrial classification of wholesale electronic parts and equipment, is incorporated in Schaffhausen with a fiscal year ending on September 27. The company, formerly known as Tyco Electronics Ltd., changed its name in 2007.
The recent filings also revealed that Stucki has a derivative position in the form of stock options, with the right to buy additional shares. These options vest over a period of four years, with a quarter of them vesting each year from the grant date of November 14, 2016, as indicated by footnote F2 in the SEC filing.
TE Connectivity Ltd.'s stock transactions by its executives are closely watched by investors as they can provide insights into the company's performance and the confidence level of its leadership team in the company's future.
InvestingPro Insights
TE Connectivity Ltd. (NYSE:TEL), a leader in the Electronic Equipment, Instruments & Components industry, is currently trading near its 52-week high, reflecting a strong market confidence. As of the last trading session, TEL's stock price closed at $151.46, just shy of the peak, indicating a robust 99.32% of its 52-week high. This performance is further underscored by a notable one-year price total return of 28.5%, showcasing the stock's commendable growth over the past year.
InvestingPro data reveals that TE Connectivity boasts a healthy market capitalization of $46.26 billion, with a P/E ratio of 13.79, which is considered attractive relative to its near-term earnings growth. This is further highlighted by a PEG ratio of 0.21 for the last twelve months as of Q2 2024, suggesting that the stock may be undervalued given its growth rate. Additionally, the company's dividend yield stands at 1.72%, with a dividend growth of 10.17% in the same period, a testament to its commitment to shareholder returns. Notably, TE Connectivity has raised its dividend for 14 consecutive years, emphasizing its stable and investor-friendly approach.
An InvestingPro Tip worth highlighting is that TE Connectivity operates with a moderate level of debt and its cash flows can sufficiently cover interest payments, indicating a solid financial structure and risk management. For investors seeking more in-depth analysis and additional InvestingPro Tips, there are 10 more tips available that could provide further insights into TEL's performance and potential investment opportunities. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro for a comprehensive investment analysis.
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