AMETEK, Inc. (AME) Looks Interesting In A Number Of Ways

It has been reported that multiple insider activity took place at AMETEK, Inc. (AME). Director AMATO THOMAS A sold 1,790 shares for $7,580 in transaction occurred on 2019/05/13. After making this transaction, Director owns a direct stake of 2 shares, worth $644,452, as per the last closing price. On 2019/05/02 WILLIAMS DENNIS K, Director at AME, dumped 1,570 shares at an average price of $87 per share. The selling total is valued at $2,250,224.

PRES. – ELECTRONIC INSTRUMENTS, Marecic Thomas C had divested 3,500 shares for $13,358 through a trade on 2019/03/29. Following this activity, the insider holds 2 shares worth $1,135,697 as of recent close.

Vanguard Total Stock Market Index Fund revealed as top hedge fund owner in AMETEK, Inc. (AME) with a stake of over 5.89M AME shares as of September 29, with a market value of approx. $466.33M as of today. The second largest holder, Vanguard Mid-Cap Index Fund, with 5.44M shares which equates to $430.43M worth of the stock. At third is Vanguard 500 Index Fund, which stood pat with 4.32M shares, a 1.77% position in AMETEK, Inc., worth $341.64M. The insider holding in stood at 0.4% while institutions hold 87.5%.

AMETEK, Inc. (NYSE:AME) rose 1.08% in recent trade and currently has a stock-market value of $19.34B. The shares finished at $85.02, after trading as low as $84.45 earlier in the session. It hit an intraday high Tuesday at $85.86. Trading activity significantly weakened as the volume at ready counter decreased to 892,287 shares versus 983,285 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 1,202,641 shares. The stock is now 34.65% above against its bear-market low of $63.14 on December 26, 2018. It has retreated -4.4% since it’s 52-week high of $88.76 reached in May. Now the market price is up 13.65% on the year and up 25.58% YTD.

AME stock’s 50 day simple moving average (SMA 50) price is $83.71 and its 200-day simple moving average (SMA 200) price is $76.58. The company’s stock currently has a total float of 226.8M shares. Its weekly volatility is hovering around 1.9% and felt 1.48% volatility in price over a month. On the upside, the share price will test short term resistance at around $85.77. On a downside, the stock is likely to find some support, which begins at $84.36. The failure to get near-term support could push it to $83.7.

It had seen a positive analyst call from Morgan Stanley, which upgraded the stock from Equal-Weight to Overweight on December 18. Analysts at Stephens, started covering the stock on November 20 with a Overweight rating. Brokerage firm Stifel, looks cautious as they stick to prior recommendation of Buy, in a call on June 08. However, they did change the target price from $66 to $69. Atlantic Equities analysts came out with bullish views on February 15 when the call was made. They think the stock is now Overweight compared to to their prior call for Neutral.

When looking at valuations, AMETEK, Inc. (AME) has a cheap P/E of 24.95x as compared to industry average of 27.72x. Moreover, it trades for 19.75 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 4.33x price/book and 3.9x price/sales. Compared to others, AMETEK, Inc. is in a different league with regards to profitability, having net margins of 16.1%. To put some perspective around this, the industry’s average net margin is 14.25%. AME’s ROE is 18.3%, which is also considerably better than the industry’s ROE of 12.66%. It’s also very liquid in the near term, with a current ratio of 1.9. The stock has a debt/capital of 0.55.

Shares of AME have dropped -4.6% since the company’s most recent earnings report. Over the past 12 fiscal quarters, AMETEK, Inc. (NYSE:AME) has topped consensus earnings estimates in 10 quarters (83%), missed earnings in 0 quarters (0%), whereas at 2 occasion EPS met analyst expectations. AME last reported earnings that exceeded expectations. The company raked in $1 per share, -68.25% change on the same period last year. That was better than consensus for $0.97. Revenue for the recent quarter stood at $1.29 billion, up 10% on last year and above the $1.27 billion predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $1.28 billion to $1.34 billion, which should be compared with $1.24 billion generated last year. EPS is seen in a range of $1.01 to $1.03, against the $0.86 reported a year ago.