Amphenol Corp. (APH) Stock Rating Lowered by Zacks Investment Research
Amphenol Corp. (NYSE:APH) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report issued on Tuesday.
According to Zacks, “The diversification in end markets, with a consistent focus on technology innovation and customer support, enable Amphenol to post strong results. A balanced organic and inorganic growth model, a lean and flexible cost structure, and an agile and entrepreneurial management team add to its strengths. With strong second-quarter 2016 results, Amphenol offered a bullish guidance for 2016 on the back of accretive acquisitions and solid demand. The company has a positive earnings history in the trailing four quarters. Estimates have also remained steady in the last 30 days ahead of the third-quarter results. However, increasing cost of raw materials, cut-throat competition and foreign currency risks remain headwinds in a challenging macroeconomic environment. Huge operating costs through sustained R&D efforts often impact its return on investments. In addition, continued acquisition binge is also expected to be a drag on operating results.”
A number of other research firms have also weighed in on APH. RBC Capital Markets reaffirmed a “top pick” rating and issued a $66.00 price objective (up from $65.00) on shares of Amphenol Corp. in a research note on Tuesday. Goldman Sachs Group Inc. raised shares of Amphenol Corp. from a “neutral” rating to a “buy” rating and increased their price target for the company from $60.00 to $70.00 in a research report on Tuesday. Finally, Royal Bank Of Canada increased their price target on shares of Amphenol Corp. from $61.00 to $63.00 and gave the company a “top pick” rating in a research report on Thursday, July 21st. Five investment analysts have rated the stock with a hold rating, two have assigned a buy rating and two have assigned a strong buy rating to the company. Amphenol Corp. has a consensus rating of “Buy” and a consensus price target of $68.11.
Amphenol Corp. (NYSE:APH) opened at 64.90 on Tuesday. The company has a 50 day moving average of $61.54 and a 200-day moving average of $58.56. The stock has a market cap of $20.04 billion, a P/E ratio of 26.70 and a beta of 1.16. Amphenol Corp. has a 12-month low of $44.50 and a 12-month high of $65.18.
Amphenol Corp. (NYSE:APH) last released its quarterly earnings data on Wednesday, July 20th. The company reported $0.65 earnings per share for the quarter, topping the Zacks’ consensus estimate of $0.63 by $0.02. Amphenol Corp. had a net margin of 13.03% and a return on equity of 23.72%. The company earned $1.55 billion during the quarter, compared to analyst estimates of $1.52 billion. During the same period in the prior year, the firm earned $0.58 earnings per share. The firm’s revenue for the quarter was up 14.6% compared to the same quarter last year. Equities analysts forecast that Amphenol Corp. will post $2.63 earnings per share for the current year.
The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 5th. Stockholders of record on Tuesday, September 13th will be issued a dividend of $0.14 per share. This represents a $0.56 annualized dividend and a dividend yield of 0.86%. Amphenol Corp.’s dividend payout ratio (DPR) is currently 23.05%.
In related news, CFO Craig A. Lampo sold 22,000 shares of the stock in a transaction that occurred on Tuesday, August 9th. The shares were sold at an average price of $60.07, for a total value of $1,321,540.00. Following the transaction, the chief financial officer now owns 35,000 shares in the company, valued at approximately $2,102,450. The sale was disclosed in a filing with the SEC, which is available through this link. Also, VP Patrick Gillard sold 30,000 shares of the stock in a transaction that occurred on Friday, July 22nd. The stock was sold at an average price of $59.06, for a total transaction of $1,771,800.00. Following the completion of the transaction, the vice president now owns 6,400 shares in the company, valued at approximately $377,984. The disclosure for this sale can be found here. Insiders own 2.92% of the company’s stock.
A number of institutional investors have recently modified their holdings of APH. NN Investment Partners Holdings N.V. acquired a new position in shares of Amphenol Corp. during the first quarter valued at $103,000. BlueMountain Capital Management LLC acquired a new position in shares of Amphenol Corp. during the first quarter valued at $139,000. Van ECK Associates Corp increased its position in shares of Amphenol Corp. by 30.0% in the second quarter. Van ECK Associates Corp now owns 2,738 shares of the company’s stock valued at $157,000 after buying an additional 632 shares during the period. Tower Research Capital LLC TRC acquired a new position in shares of Amphenol Corp. during the second quarter valued at $181,000. Finally, Quadrant Capital Group LLC increased its position in shares of Amphenol Corp. by 3.2% in the second quarter. Quadrant Capital Group LLC now owns 3,215 shares of the company’s stock valued at $181,000 after buying an additional 99 shares during the period. Institutional investors own 96.81% of the company’s stock.
Amphenol Corp. Company Profile
Amphenol Corporation (Amphenol) is a designer, manufacturer and marketer of electrical, electronic and fiber optic connectors, interconnect systems, antennas, sensors and sensor-based products, and coaxial and specialty cable. The Company operates through two segments: Interconnect Products and Assemblies, and Cable Products and Solutions.
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