Benchmark Electronics (NYSE:BHE) Shares Down 9.3% - Time to Sell?

Key Points

• Benchmark Electronics' stock fell 9.3% during mid-day trading, dropping to a low of $34.44, with trading volume down 84% from average levels.
• Despite the stock's recent decline, multiple brokerages have set a "buy" rating for the stock, with revised price targets ranging from $46.00 to $48.00.
• The company reported earnings of $0.55 per share for the last quarter, exceeding expectations, although revenue declined by 3.6% compared to the same quarter last year.

Benchmark Electronics, Inc. (NYSE:BHE - Get Free Report) dropped 9.3% during trading on Thursday . The stock traded as low as $34.44 and last traded at $35.63. Approximately 52,569 shares were traded during mid-day trading, a decline of 84% from the average daily volume of 322,473 shares. The stock had previously closed at $39.26.

Analyst Ratings Changes

BHE has been the subject of several analyst reports. Wall Street Zen downgraded Benchmark Electronics from a "buy" rating to a "hold" rating in a research note on Saturday. Needham & Company LLC cut their target price on Benchmark Electronics from $48.00 to $47.00 and set a "buy" rating for the company in a research note on Friday. Finally, Lake Street Capital cut their target price on Benchmark Electronics from $52.00 to $46.00 and set a "buy" rating for the company in a research note on Wednesday, April 30th.

Benchmark Electronics Trading Up 3.6%

The stock has a market cap of $1.40 billion, a P/E ratio of 37.22 and a beta of 0.99. The company has a debt-to-equity ratio of 0.18, a quick ratio of 1.46 and a current ratio of 2.36. The stock has a 50-day moving average price of $38.58 and a 200-day moving average price of $38.84.

Benchmark Electronics (NYSE:BHE - Get Free Report) last issued its quarterly earnings results on Wednesday, July 30th. The technology company reported $0.55 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.54 by $0.01. The firm had revenue of $642.34 million during the quarter, compared to the consensus estimate of $638.67 million. Benchmark Electronics had a return on equity of 6.08% and a net margin of 1.48%. The company's revenue for the quarter was down 3.6% on a year-over-year basis. During the same quarter last year, the company posted $0.57 EPS.

Benchmark Electronics Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, July 11th. Investors of record on Monday, June 30th were issued a dividend of $0.17 per share. This represents a $0.68 dividend on an annualized basis and a dividend yield of 1.7%. The ex-dividend date of this dividend was Monday, June 30th. Benchmark Electronics's dividend payout ratio (DPR) is currently 64.76%.

Hedge Funds Weigh In On Benchmark Electronics

A number of large investors have recently bought and sold shares of BHE. LPL Financial LLC increased its stake in Benchmark Electronics by 8.3% in the 4th quarter. LPL Financial LLC now owns 15,067 shares of the technology company's stock worth $684,000 after purchasing an additional 1,156 shares during the period. JPMorgan Chase & Co. increased its stake in shares of Benchmark Electronics by 45.2% during the fourth quarter. JPMorgan Chase & Co. now owns 815,499 shares of the technology company's stock valued at $37,024,000 after buying an additional 253,730 shares during the period. Norges Bank purchased a new position in shares of Benchmark Electronics during the fourth quarter valued at approximately $5,302,000. Wellington Management Group LLP boosted its position in shares of Benchmark Electronics by 1.9% during the fourth quarter. Wellington Management Group LLP now owns 436,181 shares of the technology company's stock valued at $19,803,000 after purchasing an additional 8,000 shares in the last quarter. Finally, ExodusPoint Capital Management LP bought a new stake in shares of Benchmark Electronics during the fourth quarter valued at approximately $1,893,000. 92.29% of the stock is owned by hedge funds and other institutional investors.

About Benchmark Electronics

Benchmark Electronics, Inc, together with its subsidiaries, offers product design, engineering services, technology solutions, and manufacturing services in the Americas, Asia, and Europe. The company provides engineering services and technology solutions, including new product design, prototype, testing, and related engineering services; and custom testing and technology solutions, as well as automation equipment design and build services.