Benchmark Electronics (NYSE:BHE) Trading Down 9.4% - Should You Sell?

Key Points

• Benchmark Electronics shares fell 9.4% to about $76.22 in mid-day trading, with volume roughly 80% below the average session level.
• Despite the selloff, analysts remain positive: all three covering analysts rate the stock a Buy, with an average price target of $91.
• The company reported stronger-than-expected quarterly results, including $0.75 EPS versus $0.69 expected and revenue of $755.98 million, up 17.7% year over year. Benchmark also maintained a quarterly dividend of $0.17 per share.

Shares of Benchmark Electronics, Inc. (NYSE:BHE - Get Free Report) dropped 9.4% during mid-day trading on Tuesday . The company traded as low as $76.45 and last traded at $76.2190. Approximately 81,430 shares changed hands during mid-day trading, a decline of 80% from the average session volume of 400,035 shares. The stock had previously closed at $84.17.

Wall Street Analyst Weigh In

Several equities analysts recently commented on BHE shares. Needham & Company LLC boosted their price target on Benchmark Electronics from $80.00 to $90.00 and gave the stock a "buy" rating in a research report on Thursday, July 30th. Lake Street Capital reaffirmed a "buy" rating and issued a $92.00 price objective on shares of Benchmark Electronics in a research report on Thursday, April 30th. Finally, Weiss Ratings upgraded shares of Benchmark Electronics from a "hold (c)" rating to a "buy (b-)" rating in a research note on Friday, July 31st. Three research analysts have rated the stock with a Buy rating, According to MarketBeat.com, the company presently has an average rating of "Buy" and an average price target of $91.00.

Benchmark Electronics Stock Performance

The company has a quick ratio of 1.31, a current ratio of 1.99 and a debt-to-equity ratio of 0.16. The company has a 50 day moving average of $85.21 and a 200 day moving average of $72.81. The firm has a market cap of $2.74 billion, a price-to-earnings ratio of 51.85 and a beta of 1.28.

Benchmark Electronics (NYSE:BHE - Get Free Report) last issued its quarterly earnings data on Wednesday, July 29th. The technology company reported $0.75 earnings per share for the quarter, beating analysts' consensus estimates of $0.69 by $0.06. The firm had revenue of $755.98 million during the quarter, compared to analyst estimates of $720.00 million. Benchmark Electronics had a return on equity of 7.28% and a net margin of 1.89%.Benchmark Electronics's quarterly revenue was up 17.7% on a year-over-year basis. During the same quarter last year, the firm earned $0.03 EPS. Benchmark Electronics has set its Q3 2026 guidance at 0.760-0.820 EPS.

Benchmark Electronics Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, July 10th. Stockholders of record on Tuesday, June 30th were given a $0.17 dividend. The ex-dividend date of this dividend was Tuesday, June 30th. This represents a $0.68 annualized dividend and a dividend yield of 0.9%. Benchmark Electronics's payout ratio is presently 46.26%.

Insider Activity

In related news, CEO David Moezidis sold 12,500 shares of Benchmark Electronics stock in a transaction dated Tuesday, May 26th. The stock was sold at an average price of $87.57, for a total value of $1,094,625.00. Following the completion of the transaction, the chief executive officer directly owned 85,564 shares in the company, valued at approximately $7,492,839.48. This trade represents a 12.75% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, SVP Stephen J. Beaver sold 20,000 shares of the company's stock in a transaction that occurred on Thursday, June 11th. The shares were sold at an average price of $86.25, for a total value of $1,725,000.00. Following the sale, the senior vice president owned 75,020 shares in the company, valued at $6,470,475. The trade was a 21.05% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 1.10% of the company's stock.

Hedge Funds Weigh In On Benchmark Electronics

A number of hedge funds have recently added to or reduced their stakes in BHE. Franklin Resources Inc. boosted its holdings in shares of Benchmark Electronics by 8.1% in the 4th quarter. Franklin Resources Inc. now owns 2,906,748 shares of the technology company's stock valued at $124,293,000 after buying an additional 218,450 shares during the period. Oppenheimer Asset Management Inc. acquired a new stake in Benchmark Electronics during the fourth quarter worth about $1,193,000. UBS Group AG lifted its holdings in Benchmark Electronics by 100.0% in the fourth quarter. UBS Group AG now owns 68,841 shares of the technology company's stock worth $2,944,000 after acquiring an additional 34,415 shares during the last quarter. Hillsdale Investment Management Inc. bought a new position in Benchmark Electronics in the first quarter worth about $4,740,000. Finally, Louisiana State Employees Retirement System acquired a new position in Benchmark Electronics in the first quarter valued at approximately $886,000. Institutional investors and hedge funds own 92.29% of the company's stock.

Benchmark Electronics Company Profile

Benchmark Electronics, Inc is a global provider of comprehensive electronics manufacturing services (EMS) and integrated engineering solutions. The company offers a full suite of services that span the entire product lifecycle, from early‐stage design and prototyping to high‐volume production and aftermarket support. Benchmark serves diverse end markets, including industrial automation, medical devices, communications, aerospace and defense, and semiconductor equipment.

At the core of Benchmark's offering are printed circuit board assemblies (PCBA), system integration, box build assemblies and turnkey manufacturing.

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