AMETEK (NYSE:AME) Shares Gap Up on Better-Than-Expected Earnings

AMETEK, Inc. (NYSE:AMEGet Rating) gapped up before the market opened on Tuesday following a better than expected earnings announcement. The stock had previously closed at $122.38, but opened at $131.93. AMETEK shares last traded at $125.91, with a volume of 12,108 shares changing hands.

The technology company reported $1.38 earnings per share for the quarter, topping the consensus estimate of $1.29 by $0.09. AMETEK had a net margin of 18.02% and a return on equity of 17.82%. The company had revenue of $1.51 billion for the quarter, compared to analysts’ expectations of $1.46 billion. During the same quarter in the previous year, the firm posted $1.15 earnings per share. AMETEK’s revenue for the quarter was up 9.2% on a year-over-year basis.

AMETEK Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, June 30th. Investors of record on Friday, June 10th were paid a $0.22 dividend. The ex-dividend date of this dividend was Thursday, June 9th. This represents a $0.88 annualized dividend and a dividend yield of 0.70%. AMETEK’s dividend payout ratio is 19.64%.

AMETEK announced that its Board of Directors has authorized a stock repurchase program on Friday, May 6th that allows the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization allows the technology company to reacquire up to 3.6% of its shares through open market purchases. Shares repurchase programs are typically an indication that the company’s leadership believes its stock is undervalued.

Wall Street Analyst Weigh In

Several analysts recently weighed in on the stock. Royal Bank of Canada reissued a “maintains” rating on shares of AMETEK in a research note on Wednesday. Loop Capital cut their price target on shares of AMETEK from $170.00 to $155.00 and set a “buy” rating on the stock in a research report on Tuesday, July 19th. Bank of America cut shares of AMETEK from a “buy” rating to a “neutral” rating and cut their price target for the company from $170.00 to $122.00 in a research report on Monday, July 11th. Robert W. Baird cut their price target on shares of AMETEK from $156.00 to $140.00 and set a “neutral” rating on the stock in a research report on Tuesday, May 10th. Finally, KeyCorp dropped their price objective on shares of AMETEK from $155.00 to $145.00 in a report on Wednesday, May 4th. Three research analysts have rated the stock with a hold rating and six have issued a buy rating to the company’s stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $151.20.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of AME. Gryphon Financial Partners LLC purchased a new stake in AMETEK in the 1st quarter worth approximately $25,000. Quent Capital LLC raised its position in shares of AMETEK by 177.8% during the 1st quarter. Quent Capital LLC now owns 200 shares of the technology company’s stock valued at $27,000 after buying an additional 128 shares in the last quarter. Covestor Ltd raised its position in shares of AMETEK by 84.3% during the 1st quarter. Covestor Ltd now owns 212 shares of the technology company’s stock valued at $28,000 after buying an additional 97 shares in the last quarter. Prospera Financial Services Inc purchased a new stake in shares of AMETEK during the 1st quarter valued at $29,000. Finally, Intelligent Financial Strategies purchased a new stake in shares of AMETEK during the 4th quarter valued at $35,000. 86.72% of the stock is owned by institutional investors.

AMETEK Stock Performance

The company has a market cap of $29.15 billion, a PE ratio of 28.18, a PEG ratio of 2.48 and a beta of 1.26. The business’s 50-day moving average is $115.11 and its 200 day moving average is $124.68. The company has a debt-to-equity ratio of 0.32, a quick ratio of 0.88 and a current ratio of 1.43.

About AMETEK

(Get Rating)

AMETEK, Inc manufactures and sells electronic instruments and electromechanical devices worldwide. It operates in two segments, Electronic Instruments (EIG) and Electromechanical (EMG). The company's EIG segment offers advanced instruments for the process, aerospace, power, and industrial markets; process and analytical instruments for the oil and gas, petrochemical, pharmaceutical, semiconductor, automation, and food and beverage industries; and instruments to the laboratory equipment, ultra-precision manufacturing, medical, and test and measurement markets.

Further Reading

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