Amphenol Corporation (NYSE: APH) has garnered a consensus rating of “Moderate Buy” from analysts, with thirteen brokerages covering the company. According to MarketBeat Ratings, three analysts have issued a hold rating while ten have recommended buying the stock. The average price target set by these brokerages stands at approximately $134.08 for the next twelve months.
Several financial institutions have recently updated their ratings and price targets for Amphenol. On October 15, 2023, Bank of America upgraded its rating from “neutral” to “buy,” increasing its price target from $120.00 to $150.00. Similarly, Weiss Ratings reaffirmed a “buy (b)” rating on October 8, 2023. Truist Financial raised its target from $147.00 to $180.00, maintaining a buy rating in a note released on December 19, 2023. Barclays also adjusted their price objective from $120.00 to $143.00 with an “equal weight” rating, while The Goldman Sachs Group set a target of $154.00 and assigned a buy rating on October 23, 2023.
Strong Earnings Performance
Amphenol recently reported its earnings, revealing a robust performance that exceeded analyst expectations. For the quarter ending October 22, 2023, the company posted earnings of $0.93 per share, surpassing the consensus estimate of $0.79 by $0.14. The firm achieved a net margin of 18.22% and a return on equity of 33.46%. Revenue for the quarter reached $6.19 billion, significantly above the projected $5.54 billion and representing a remarkable increase of 53.4% compared to the same period last year, when earnings per share stood at $0.50.
Looking ahead, Amphenol has provided guidance for fiscal year 2025, projecting earnings per share between $3.260 and $3.280, with fourth quarter expectations set at $0.890 to $0.910. Analysts anticipate that the company will achieve earnings per share of $2.36 for the current year.
Dividend Increase and Insider Transactions
In addition to strong earnings, Amphenol announced a quarterly dividend of $0.25 per share, which will be paid on January 7, 2024. This represents an increase from the previous quarterly dividend of $0.17. Investors of record on December 16, 2023 will receive this dividend, which translates to an annualized total of $1.00 and a yield of 0.7%. The current payout ratio is 33.33%.
Recent insider activity has also garnered attention. On October 24, 2023, insider Luc Walter sold 365,118 shares at an average price of $134.65, totaling approximately $49.16 million. Following this transaction, Walter retains ownership of 433,742 shares, valued at about $58.40 million. In another transaction, Vice President David M. Silverman sold 120,000 shares for around $16.94 million on November 3, 2023, resulting in a significant decrease in ownership.
In total, insiders have sold over 1,063,194 shares worth approximately $148.24 million in the last ninety days, with insiders currently holding 1.67% of the stock.
Institutional Investors Show Increased Interest
Institutional investors and hedge funds have recently adjusted their holdings in Amphenol. Brighton Jones LLC increased its position by 114.0% in the fourth quarter, now owning 17,624 shares valued at $1.22 million. Revolve Wealth Partners LLC raised its stake by 87.9% to 10,094 shares worth $701,000, while Bison Wealth LLC increased holdings by 8.3% to 8,042 shares valued at $559,000. Evergreen Capital Management LLC also grew its position in Amphenol by 3.9% during the first quarter, now owning 7,914 shares.
As of now, institutional investors hold 97.01% of Amphenol’s stock, reflecting strong confidence in the company’s future prospects.
Amphenol Corporation is a leading global manufacturer of electronic and fiber optic connectors, interconnect systems, and related components. The company serves various end markets, including automotive, telecommunications, data communications, and military applications, with a diverse product portfolio designed to meet the needs of complex systems.
