AMETEK, Inc. (AME) Being Snapped Up By Insiders

AMETEK, Inc. (NYSE:AME) is now being followed by Stephens, as they initiated the stock at Overweight on November 20. Analysts at Stifel, maintained the company shares at Buy on June 08 but switched target price from $66 to $69. The stock won favor of Atlantic Equities analysts who expressed their confidence in it using an upgrade from Neutral to Overweight on February 15. RBC Capital Mkts, reiterated their call for Outperform, on February 08. On the other hand, they had set new target price to $60 versus $57.

AMETEK, Inc. (AME) hit an intraday high Thursday at $71.66. The shares finished at $71.49, after trading as low as $68.74 earlier in the session. It dropped -0.82% in recent trade and currently has a stock-market value of $16.55B. Trading activity significantly improved as the volume at ready counter increased to 2,964,627 shares versus 1,737,335 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 1,301,497 shares. The stock is now 10.14% above against its bear-market low of $64.91 on October 29, 2018. It has retreated -14.59% since it’s 52-week high of $81.92 reached in September. Now the market price is up 0.62% on the year and down -1.35% YTD.

AME’s 50 day simple moving average (SMA 50) price is $73.22 and its 200-day simple moving average (SMA 200) price is $74.93. The company’s stock currently has a total float of 228.3M shares. Its weekly volatility is hovering around 2.94% and felt 2.35% volatility in price over a month. On the upside, the share price will test short term resistance at around $72.52. On a downside, the stock is likely to find some support, which begins at $69.6. The failure to get near-term support could push it to $67.71.

Separately, it has been reported that multiple insider activity took place at AMETEK, Inc. (AME). Director Amato Thomas A acquired 2,000 shares for $7,510 in transaction occurred on 2018/11/12. After making this transaction, the Director owns a direct stake of 146,280 shares, worth $536,890, as per the last closing price. On 2018/09/19 Hardin John Wesley, PRES. – ELECTRONIC INSTRUMENTS at AME, dumped 29,955 shares at an average price of $81.55 per share. The selling total is valued at $1,438,164.

Director, Varet Elizebeth R had divested 5,300 shares for $174,460 through a trade on 2018/09/14. Following this activity, the insider holds 426,703 shares worth $12,472,145 as of recent close. Wall Street’s most bullish AMETEK, Inc. (NYSE:AME) analysts are predicting the share price to blow past $93 per share during the next 12 months. The current median share price forecast by them is $86, suggesting that the stock could increase 20.3% in that time frame. The average price target of $85.06 calls for a nearly 18.98% increase in the stock price.

When looking at valuations, AMETEK, Inc. (AME) has a cheap P/E of 23.36x as compared to industry average of 28.44x. Moreover, it trades for 19.85 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 3.67x price/book and 3.51x price/sales. Compared to others, AMETEK, Inc. is in a different league with regards to profitability, having net margins of 17.1%. To put some perspective around this, the industry’s average net margin is 14.64%. AME’s ROE is 18.8%, which is also considerably better than the industry’s ROE of 13.01%. It’s also very liquid in the near term, with a current ratio of 2.1. The stock has a debt/capital of 0.42.

Shares of AMETEK, Inc. (AME) have gained 7.5% since the company’s last earnings report. Over the past 12 fiscal quarters, AMETEK, Inc. (NYSE:AME) has topped consensus earnings estimates in 8 quarters (66%), missed earnings in 0 quarters (0%), whereas at 4 occasion EPS met analyst expectations. AME last reported earnings on November 01, 2018 when it released Sep-18 results that exceeded expectations. The company raked in $0.83 per share, -86.21% change on the same period last year. That was better than consensus for $0.78. Revenue for the recent quarter stood at $1.19 billion, up 10% on last year and above the $1.18 billion predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $1.19 billion to $1.29 billion, which should be compared with $1.15 billion generated last year. EPS is seen in a range of $0.83 to $0.86, against the $0.73 reported a year ago.