Three distinct signals converged on TEL this week. The put/call ratio, borrow costs, and short interest all moved in the same direction — despite the stock clawing back from a post-earnings low.
The put/call ratio hit 1.70 on May 27. That's 2.1 standard deviations above the 20-day mean of 1.52. Demand for downside protection is running at its highest in two weeks. The 52-week PCR range runs from 0.20 to 4.55, so the current reading isn't extreme in absolute terms — but the rate of move matters. One day prior it sat at 1.47. The jump was sharp.
Cost to borrow surged to 1.13% on May 25 — up roughly 160% in a week. That's the highest spike this month. By May 26 it pulled back to 0.31%. The spike-and-fade pattern suggests a short-term rush to establish positions rather than a sustained structural tightening. Availability remains very loose at 5,521% — there are far more shares available to borrow than are currently short, so borrow supply is not a constraint here.
Short interest sits at 2.5% of free float as of May 26. At that level, it's a secondary signal rather than the story. What's notable is the direction: SI jumped roughly 19% in the week to May 22, then fell back 16% by May 26. Short sellers built positions quickly, then trimmed. The net effect over the month is a 14% reduction in shares short.
The post-earnings analyst reaction tells part of the backdrop. On April 23, after TEL dropped more than 10% in a single session following results, HSBC downgraded to Hold and UBS, Truist, and Barclays all cut price targets. Wells Fargo was the lone dissenter, nudging its target up. The consensus target now sits at $263 — well above the current $208.75 price. Bulls point to connector content growth and strong bookings. Bears flag weakness in industrial AI connectivity and automotive cyclicality. Next earnings are scheduled for July 22.
Correlated peers APH, JBL, and CTS have all outperformed TEL over the past week, gaining 14.7%, 12.3%, and 14.6% respectively versus TEL's 3.7% weekly gain. That divergence may be part of what's drawing options hedgers to TEL specifically.
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TE Connectivity heads into early May with a stock that has recovered some post-earnings ground, while short sellers quietly rebuild positions and analysts digest a quarter that underwhelmed on datacenter exposure. The…
