AMETEK Inc. (AME): Technicals Say You should Hold

AMETEK Inc. (NYSE:AME) saw a downside of -0.85% to close Tuesday at $123.40 after subtracting -$1.06 on the day. The 5-day average trading volume is 1,018,400 shares of the company’s common stock. It has gained $127.10 in the past week. An average of 1,216,365 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 1,019,858.

AME’s 1-month performance is -5.48% or -$7.03 on its low of $122.38 reached on 10/04/21. The company’s shares have touched a 52-week low of $96.86 and high of $140.10, with the stock’s rally to the 52-week high happening on 08/02/21. YTD, AME has achieved 2.03% or $2.46. However, the current price is down -11.92%% from the 52-week high price.


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Insider Transactions

On Sep 08, 35 days have gone by since the last insider trading activity for AMETEK Inc. (AME). Kohlhagen Steven W (Director) most recently sold 5,160 shares at $132.28 per share on Sep 08. This transaction cost the insider $682,566. PRESIDENT – ELECTROMECHANICAL, Jones Timothy N, sold 41,935 shares at a price of $137.58 on Aug 30. Then, on Jun 30, PRES. – ELECTRONIC INSTRUMENTS Hardin John Wesley sold 3,000 shares at a price of $133.44 per share. This transaction amounted to $400,307.

Valuation Metrics

The company’s PE ratio for the last five years has touched a high of 39.46 and a low of 15.52. AME stock has a beta of 1.33. Moving on to other valuation ratios, the trailing price-to-sales (P/S) ratio is 5.76 while the price-to-book (PB) in the most recent quarter is 4.49, with the price to cash flow ratio at 28.26.

AMETEK Inc. pays an annual dividend of $0.80 per share. Its dividend yield is 0.65% and the payout ratio is 20.00%. AME’s most recent quarterly dividend payment was made on Sep. 30, when it paid $0.20 a share compared with prior rate of $0.20, down 0.0% from last year’s. The company has boosted its dividend for the last 2 consecutive years with the latest dividend increase of $0.02 reported on Wednesday February 10 2021. Measured over the last 3 years, the Dividend has been growing by 100.00% yearly.

It is projected that AMETEK Inc.’s next ex-dividend date will be on 6-Dec. AME is expected to distribute $0.20 as its next dividend.

AMETEK Inc.’s quick ratio for the period ended June 29 was 0.70, with the current ratio over the same period at 1.10 meaning that AME stock is not able to fulfill its debt obligations. As well, the company’s long term debt to equity for the quarter ending June 29 was 0.36, while the total debt to equity was 0.47. In terms of profitability, the gross margin trailing 12 months is 35.00%. The trailing 12-month EBITDA margin is 29.23% while for the period ending June 29; AMETEK Inc.’s operating margin was 23.90%. The firm’s gross profit as reported stood at $1.54 billion against revenue of $4.54 billion.

Earnings Surprise

For the quarterly period ending June 29 this year, Net income and sales went up compared to those figures reported in the previous quarter. Net income grew 27.01% to $1.39 billion, while revenue of $1.22 billion was 12.31% off the previous quarter. Analysts expected AME to announce $1.1 per share in earnings in its latest quarter, but it posted $1.15, representing a 4.50% surprise. EBITDA for the quarter stood at more than $391.81 million. AME stock balance sheet for the quarter ending June 29 shows that total liabilities totaled 5.41 billion, with total debt at $3.15 billion. Shareholders hold equity totaling $231.21 million

Technical Picture

Let’s look briefly at AMETEK Inc. (AME) price momentum from a technical analysis perspective. The 9-day relative strength index as at close on 12 October was 31.91% to suggest the stock is trending Neutral, with historical volatility in this time period at 19.19%.

The stock’s 5-day moving average is $125.00, reflecting a -1.60% or -$2.01 change from its current price. AME is currently trading -5.97% above its 20-day SMA, -6.78% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 and SMA200 by -10.73% and +3.66% respectively.

Stochastic %K and %D was 25.79% and 32.04% and the average true range (ATR) pointed at 2.30. The RSI (14) points at 33.05%, while the 14-day stochastic is at 11.45% with the period’s ATR at 2.24. The stock’s 9-day MACD Oscillator is pointing at -0.04 and -1.39 on the 14-day charts.

Analyst Ratings

In the most recent analyst report for AMETEK Inc. (NYSE: AME), Oppenheimer downgraded it to a Perform rating. They previously had an Outperform rating on the stock. Analysts offering their rating for AME stock have a consensus rating for the stock as Overweight. Currently, 0 brokerage advisors rate AME as a “sell,”, while 4 advise that investors “Hold.” 0 analysts have rated the stock as underweight. 3 rates the stock as overweight while 10 have offered a “buy” rating.

What is AME’s price target for the next 12 months?

Analysts have a consensus price target ranging from a low of $150.00 and a high of $175.00, with their median price target at $158.50. Looking at these predictions, the average price target given by analysts is for AMETEK Inc. (AME) stock is $158.29.

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