Amphenol Corporation (APH) Volatility Spurs A Quest For Clarity


SSgA Funds Management, Inc. recently announced the acquisition of new stake in Amphenol Corporation (NYSE:APH). The institutional investor has increased its shareholding in the Technology company by 0.30% to 13.1 million shares with purchase of 39311.0 shares. This fresh investment now brings its stake to 4.39% valued currently at $1.39 billion. In addition, Walter Scott & Partners Ltd. raised its holdings by 0.23 million to 10.91 million shares. And AllianceBernstein LP has lifted its position by 18.88% or 1.23 million shares – to 7.72 million shares.

With over 1.07 million Amphenol Corporation (APH) shares trading Tuesday and a closing price of $108.91 on the day, the dollar volume was approximately $116.82 million. The shares have shown a negative weekly performance of -0.22% and its price on 08/25/20 gained nearly 0.15%. Currently, there are 296.60M common shares owned by the public and among those 293.94M shares have been available to trade.

An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 17 analysts who have offered their price forecasts for APH have a consensus price objective of $114.07. The analysts have set the share’s price value over the next 12 months at a high of $140.00 and a low of $95.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Amphenol Corporation stock is 2.10 for the next 12 months. The average price target is 4.15% above its last price level and an upside to the estimated low will see the stock lose -14.64% over that period. But an upside of 22.21% will see the stock hit the forecast high price target while mean target price for the stock is $115.00.

Insiders at the company have transacted a total of 90 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 51 of these insider trades were purchases, accounting for 1,710,215 shares. Insider sales of the common stock occurred on 39 occasions, with total insider shares sold totaling 1,568,060 shares.

The top 3 mutual fund holders in Amphenol Corporation are Fidelity Contrafund, Vanguard Total Stock Market Index, and Vanguard Mid Cap Index Fund. Fidelity Contrafund owns 13.61 million shares of the company’s stock, all valued at over $1.44 billion. The company sold -0.23 million shares recently to bring their total holdings to about 4.56% of the shares outstanding. Vanguard Total Stock Market Index sold 20960.0 shares to see its total holdings shrink to 8.41 million shares valued at over $889.28 million and representing 2.82% of the shares outstanding. Vanguard Mid Cap Index Fund sold 55579.0 shares to bring its total holdings to over 7.26 million shares at a value of $767.92 million. Vanguard Mid Cap Index Fund now owns shares totaling to 2.43% of the shares outstanding.

Shares of Amphenol Corporation (NYSE: APH) opened at $109.14, up $0.39 from a prior closing price of $108.75. However, the script later closed the day at $108.91, up 0.15%. The company’s stock has a 5-day price change of -0.22% and 14.01% over the past three months. APH shares are trading 0.63% year to date (YTD), with the 12-month market performance up to 27.74% higher. It has a 12-month low price of $63.05 and touched a high of $111.40 over the same period. Currently, 1.07 million shares have been traded, compared to an average intraday trading volume of 1.46 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 0.78%, 6.62%, and 12.56% respectively.

Institutional ownership of Amphenol Corporation (NYSE: APH) shares accounts for 97.00% of the company’s 296.60M shares outstanding. Mutual fund holders own 42.18%, while other institutional holders and individual stakeholders account for 55.38% and 1.93% respectively.

It has a market capitalization of $32.21B and a beta (3y monthly) value of 1.29. The stock’s trailing 12-month PE ratio is 30.36, while the earnings-per-share (ttm) stands at $3.59. The company has a PEG of 10.12 and a Quick Ratio of 1.80 with the debt-to-equity ratio at 0.79. Price movements for the stock have been influenced by the stock’s volatility, which stands at 2.01% over the week and 1.57% over the month.

Analysts forecast that Amphenol Corporation (APH) will achieve an EPS of $0.86 for the current quarter, $0.94 for the next quarter and $3.95 for 2021. The lowest estimate earnings-per-share for the quarter is $0.84 while analysts give the company a high EPS estimate of $0.89. Comparatively, EPS for the current quarter was $0.95 a year ago. Earnings per share for the fiscal year are expected to decrease by -9.20%, and 19.38% over the next financial year. EPS should shrink at an annualized rate of 3.00% over the next five years, compared to 11.10% over the past 5-year period.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 17 brokerage firm advisors rate Amphenol Corporation (APH) as a “Moderate Buy” at a consensus score of 2.10. Specifically, 9 Wall Street analysts polled rate the stock as a buy, while 6 of the 17 advise that investors “hold,” and 0 rated it as a “Sell.”

Looking at the support for the APH, a number of firms have released research notes about the stock. Morgan Stanley stated their Equal-Weight rating for the stock in a research note on August 24, 2020, with the firm’s price target at $110. Loop Capital coverage for the Amphenol Corporation (APH) stock in a research note released on April 20, 2020 offered a Hold rating with a price target of. Cross Research was of a view on January 21, 2020 that the stock is Sell, while RBC Capital Mkts gave the stock Sector Perform rating on December 17, 2019, issuing a price target of $110. Jefferies on their part issued Buy rating on December 16, 2019.


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