Teledyne Technologies Incorporated (TDY) Shares Have Potential 3.88% Upside

Teledyne Technologies Incorporated (NYSE:TDY) is rated as Buy by analysts at Needham. The firm was pushed by the stock performance to change their PT view from $210 to $240 on August 06. Analysts at Needham, maintained the company shares at Buy on May 04 but switched target price from $205 to $210. Brokerage firm Needham, looks cautious as they stick to prior recommendation of Buy, in a call on November 03. However, they did change the target price from $157 to $190. Needham analysts came out with bullish views on July 05 when the call was made. They think the stock is now Buy compared to to their prior call for Hold.

TDY stock rose 0.03% in recent trade and currently has a stock-market value of $8.58B. The shares finished at $235.86, after trading as low as $233.54 earlier in the session. It hit an intraday high Monday at $237.165. Trading activity significantly weakened as the volume at ready counter decreased to 119,613 shares versus 120,765 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 137,512 shares. The stock is now 32.74% above against its bear-market low of $177.68 on May 01, 2018. It has retreated -6.36% since it’s 52-week high of $250.87 reached in September. Now the market price is up 28.86% on the year and up 13.9% YTD.

It has been reported that multiple insider activity took place at Teledyne Technologies Incorporated (TDY). Director Miller Paul David sold 10,030 shares for $21,273 in transaction occurred on 2019/02/07. After making this transaction, Director owns a direct stake of 2,256,750 shares, worth $5,017,450, as per the last closing price.

Director, Von Schack Wesley W had divested 10,000 shares for $11,926 through a trade on 2019/02/01. Following this activity, the insider holds 2,260,000 shares worth $2,812,866 as of recent close.

Teledyne Technologies Incorporated (TDY)’s 50 day simple moving average (SMA 50) price is $220.38 and its 200-day simple moving average (SMA 200) price is $220.3. The company’s stock currently has a total float of 33.46M shares. Its weekly volatility is hovering around 1.39% and felt 1.46% volatility in price over a month. On the upside, the share price will test short term resistance at around $237.5. On a downside, the stock is likely to find some support, which begins at $233.88. The failure to get near-term support could push it to $231.9.

When looking at valuations, Teledyne Technologies Incorporated (TDY) has a pricey P/E of 26.22x as compared to industry average of 18.52x. Moreover, it trades for 23.7 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 3.82x price/book and 2.96x price/sales. Compared to others, Teledyne Technologies Incorporated is in a different league with regards to profitability, having net margins of 11.5%. To put some perspective around this, the industry’s average net margin is 5.95%. TDY’s ROE is 15.5%, which is also considerably better than the industry’s ROE of 5.08%. It’s also very liquid in the near term, with a current ratio of 1.5. The stock has a debt/capital of 0.34.

Shares of TDY have gained 8.5% since the company’s most recent earnings report. Over the past 12 fiscal quarters, Teledyne Technologies Incorporated (NYSE:TDY) has topped consensus earnings estimates in 12 quarters (100%), missed earnings in 0 quarters (0%), whereas at 0 occasion EPS met analyst expectations. TDY last reported earnings that exceeded expectations. The company raked in $2.45 per share, -80.23% change on the same period last year. That was better than consensus for $2.18. Revenue for the recent quarter stood at $748.4 million, up 6% on last year and above the $728.04 million predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $721 million to $731.5 million, which should be compared with $0 generated last year. EPS is seen in a range of $1.89 to $1.96, against the 0 reported a year ago.