Is AMETEK Inc. (AME) A Risky Investment?

AMETEK Inc. (NYSE:AME) finished Friday with an addition of $0.62 to close at $131.14, an upside of 0.48 percent. An average of 749,400 shares of common stock have been traded in the last five days. There was a gain of $2.81 in the past week, and it reached a new high 26 times over the past 12 months. The last 20 days have seen an average of 983,555 shares traded, while the 50-day average volume stands at 992,150.

AME stock has increased by 1.47% in the last month. The company shares reached their 1-month lowest point of $122.38 on 10/04/21. With the stock rallying to its 52-week high on 08/02/21, shares of the company touched a low of $96.86 and a high of $140.10 in 52 weeks. It has reached a new high 19 times so far this year and achieved 8.43% or $10.20 in price. In spite of this, the price is down -6.40% from the 52-week high.


3 Tiny Stocks Primed to Explode The world's greatest investor — Warren Buffett — has a simple formula for making big money in the markets. He buys up valuable assets when they are very cheap. For stock market investors that means buying up cheap small cap stocks like these with huge upside potential.

We've set up an alert service to help smart investors take full advantage of the small cap stocks primed for big returns.

Click here for full details and to join for free

Sponsored


Insider Transactions

45 days have passed since AMETEK Inc. (AME) last reported insider trading activity. Kohlhagen Steven W, who is Director, most recently acquired $5,160 shares at $132.28 per share on Sep 08. In this transaction, the insider spent $682,566. PRESIDENT – ELECTROMECHANICAL, Jones Timothy N, disposed of 41,935 shares at a price of $137.58 on Aug 30. The insider now owns more than $5,769,236 worth of shares. Prior to that, PRES. – ELECTRONIC INSTRUMENTS Hardin John Wesley went on to Sale 3,000 shares at $133.44 each on Jun 30. An amount of $400,307 was transacted.

Valuation Metrics

AMETEK Inc. (AME) has a trailing price-to-earnings (P/E) ratio of 34.73, which compares with the 20.30 for the broader industry and 29.83 for the sector. In the last five years, AMETEK Inc.’s PE ratio has ranged between 39.46 and 15.52. The stock’s beta is 1.33. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 6.16, the price-to-book (PB) ratio at 4.77, and the price-to-cash flow ratio at 30.21.

AMETEK Inc. pays a $0.80 dividend per share annually. It offers a dividend yield of 0.61%. The company has a payout ratio of 20.00%. The company’s most recent quarterly dividend payment took place on Sep. 30, and it was $0.20 a share, without any change from last year. Its dividend has been increased for the last 2 consecutive years with the latest increase dividend $0.02 reported on Wednesday February 10 2021.Dividends have grown by 100.00% each year over the last three years.

The quick ratio of AMETEK Inc. for the three months ended June 29 was 0.70, and the current ratio was 1.10, indicating that the company is not able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.36 and a total debt to equity ratio of 0.47 for the quarter ending June 29. AMETEK Inc.’s EBITDA margin for the year ending June 29 is 29.23%, while its operating margin for the same period stands at 23.90%. Its gross profit as reported stood at $1.54 billion compared to revenue of $4.54 billion.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, AMETEK Inc.’s return on assets was 8.10%. For the broader industry, ROE averaged 7.02 over the past year.

Earnings Surprise

For the three-month period that ended June 29, AMETEK Inc. had $2.26 billion in total debt. In the quarter under review, the net income was up than the previous quarter. The company posted a net income of $231.68 million in the quarter, while revenues of $219.23 million were grew 28.25%. The analyst consensus anticipated AMETEK Inc.’s latest quarter earnings to come in at $1.1 per share, but it turned out to be $1.15, a 4.50% surprise. For the quarter, EBITDA amounted to $391.81 million. Shareholders own equity worth $231.21 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at AMETEK Inc. (AME) price momentum. RSI 9-day as of the close on 22 October was 68.71%, suggesting the stock is Neutral, with historical volatility in this time frame at 16.14%.

As of today, AME’s price is $130.21 +2.19% or $2.81 from its 5-day moving average. AME is currently trading +1.18% higher than its 20-day SMA and -3.48% lower than its 100-day SMA. However, the stock’s current price level is -4.45% below the SMA50 and +5.42% above the SMA200.

The stochastic %K and %D were 93.08% and 92.46%, respectively, and the average true range (ATR) was 2.10. With the 14-day stochastic at 93.04% and the average true range at 2.13, the RSI (14) stands at 59.76%. The stock has reached 2.27 on the 9-day MACD Oscillator while the 14-day reading was at 3.33.

Analyst Ratings

Oppenheimer downgraded AMETEK Inc. (NYSE: AME) to a a Perform rating in its most recent analyst report. Previously, the stock was rated as an Outperform. The consensus rating for AMETEK Inc. (AME) among analysts is Overweight. According to current brokerage recommendations, 0 brokerage firms advise that investors sell AME, while 4 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 3 analysts, while 10 others rate it as a “buy”.

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

Analysts predict a range of price targets between $150.00 and $175.00, with a median target of $158.50. Taking a look at these predictions, the average price target given by analysts for AMETEK Inc. (AME) stock is $158.29.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

spot_img

Hot Topics

Related Videos

Related Videos

Related Articles

SPECIAL GIFT

WE HAVE A GIFT FOR YOU

Download Free eBook For

7 GROWTH STOCKS FOR 2021

592

100% free. stop anytime no spam