Heavy Insider Trading At Amphenol Corporation (APH)

Amphenol Corporation (NYSE:APH) is rated as Buy by analysts at BofA/Merrill. The firm was pushed by the stock performance to change their PT view from $103 to $107 on February 07. Analysts at Goldman, started covering the stock on October 09 with a Neutral rating. The stock won favor of Morgan Stanley analysts who expressed their confidence in it using an upgrade from Equal-Weight to Overweight on August 09. SunTrust, reiterated their call for Hold, on January 25. On the other hand, they had set new target price to $89 versus $82.

APH stock dropped -0.13% in recent trade and currently has a stock-market value of $28.27B. The shares finished at $94.32, after trading as low as $94 earlier in the session. It hit an intraday high Thursday at $94.715. Trading activity significantly improved as the volume at ready counter increased to 1,023,679 shares versus 951,370 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 1,239,698 shares. The stock is now 25.84% above against its bear-market low of $74.95 on January 03, 2019. It has retreated -3.44% since it’s 52-week high of $97.56 reached in September. Now the market price is up 1.96% on the year and up 16.42% YTD.

Wall Street’s most bullish Amphenol Corporation (NYSE:APH) analysts are predicting the share price to blow past $110 per share during the next 12 months. The current median share price forecast by them is $98, suggesting that the stock could increase 3.9% in that time frame. The average price target of $99.9 calls for a nearly 5.92% increase in the stock price.

Amphenol Corporation (APH)’s 50 day simple moving average (SMA 50) price is $88.23 and its 200-day simple moving average (SMA 200) price is $89.1. The company’s stock currently has a total float of 296.83M shares. Its weekly volatility is hovering around 1.01% and felt 1.1% volatility in price over a month. On the upside, the share price will test short term resistance at around $94.69. On a downside, the stock is likely to find some support, which begins at $93.97. The failure to get near-term support could push it to $93.63.

When looking at valuations, Amphenol Corporation (APH) has a cheap P/E of 22.8x as compared to industry average of 37.04x. Moreover, it trades for 21.76 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 7.04x price/book and 3.45x price/sales. Compared to others, Amphenol Corporation is in a different league with regards to profitability, having net margins of 14.7%. To put some perspective around this, the industry’s average net margin is 5.27%. APH’s ROE is 30.7%, which is also considerably better than the industry’s ROE of 6.93%. It’s also very liquid in the near term, with a current ratio of 1.9. The stock has a debt/capital of 0.89.

Shares of APH have gained 16.3% since the company’s most recent earnings report. Over the past 12 fiscal quarters, Amphenol Corporation (NYSE:APH) has topped consensus earnings estimates in 12 quarters (100%), missed earnings in 0 quarters (0%), whereas at 0 occasion EPS met analyst expectations. APH last reported earnings that exceeded expectations. The company raked in $1.05 per share, -86.38% change on the same period last year. That was better than consensus for $0.97. Revenue for the recent quarter stood at $2.22 billion, up 14% on last year and above the $2.09 billion predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $1.92 billion to $1.98 billion, which should be compared with $1.86 billion generated last year. EPS is seen in a range of $0.86 to $0.92, against the $0.86 reported a year ago.