Share Buyback Program Authorized by Amphenol (NYSE:APH)

Key Points

• Amphenol authorized a $4 billion share-buyback program, allowing the company to repurchase up to 2% of its outstanding shares through open-market purchases.
• The company reported a strong quarter, with earnings of $0.80 per share versus the $0.73 consensus estimate and revenue of $10.23 billion, up 65.1% year over year and ahead of expectations.
• Analysts maintain a “Moderate Buy” consensus rating with an average price target of $119.37, although several firms recently lowered their targets; insiders have also sold more than $172 million of stock over the past 90 days.

Amphenol (NYSE:APH - Get Free Report) declared that its Board of Directors has approved a stock buyback program on Wednesday, October 28th, RTT News reports. The company plans to buy back $4 billion in shares. This buyback authorization allows the electronics maker to repurchase up to 2% of its shares through open market purchases. Share buyback programs are often a sign that the company's board believes its shares are undervalued.

Amphenol Price Performance

Shares of NYSE APH traded up $2.89 during midday trading on Wednesday, reaching $81.10. 20,409,447 shares of the company were exchanged, compared to its average volume of 17,115,967. The stock's 50-day moving average price is $81.31 and its 200-day moving average price is $75.38. The stock has a market cap of $199.98 billion, a P/E ratio of 40.65, a PEG ratio of 1.00 and a beta of 1.23. The company has a quick ratio of 1.41, a current ratio of 1.89 and a debt-to-equity ratio of 1.10. Amphenol has a one year low of $59.01 and a one year high of $89.93.

Amphenol (NYSE:APH - Get Free Report) last announced its quarterly earnings results on Wednesday, October 28th. The electronics maker reported $0.80 EPS for the quarter, beating analysts' consensus estimates of $0.73 by $0.07. The company had revenue of $10.23 billion during the quarter, compared to analysts' expectations of $9.49 billion. Amphenol had a return on equity of 39.87% and a net margin of 17.73%. Amphenol's revenue was up 65.1% compared to the same quarter last year. During the same period in the prior year, the company earned $0.93 EPS. On average, sell-side analysts anticipate that Amphenol will post 2.67 earnings per share for the current fiscal year.

Amphenol Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, October 14th. Stockholders of record on Tuesday, September 22nd were paid a $0.25 dividend. The ex-dividend date of this dividend was Tuesday, September 22nd. This represents a $1.00 annualized dividend and a dividend yield of 1.2%. Amphenol's dividend payout ratio is currently 25.00%.

Wall Street Analyst Weigh In

A number of equities research analysts have issued reports on the stock. TD Cowen reduced their price objective on shares of Amphenol from $175.00 to $90.00 and set a "hold" rating on the stock in a research note on Wednesday, September 9th. Erste Group Bank started coverage on Amphenol in a report on Wednesday, October 21st. They set a "buy" rating for the company. Rothschild & Co Redburn upped their price objective on Amphenol from $172.00 to $197.00 and gave the stock a "buy" rating in a research report on Thursday, July 30th. Robert W. Baird decreased their target price on Amphenol from $190.00 to $105.00 and set an "outperform" rating on the stock in a research report on Tuesday, October 6th. Finally, Barclays reissued an "overweight" rating and set a $100.00 target price (down from $200.00) on shares of Amphenol in a research note on Tuesday, September 8th. Sixteen equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat, Amphenol currently has an average rating of "Moderate Buy" and an average target price of $119.37.

Insider Buying and Selling at Amphenol

In related news, CEO Richard Norwitt sold 372,208 shares of the stock in a transaction on Friday, July 31st. The stock was sold at an average price of $81.14, for a total value of $30,199,096.08. Following the completion of the sale, the chief executive officer directly owned 1,728,354 shares in the company, valued at $140,230,001.79. This represents a 17.72% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, EVP David M. Silverman sold 240,000 shares of the firm's stock in a transaction on Wednesday, August 5th. The stock was sold at an average price of $87.12, for a total value of $20,908,800.00. Following the transaction, the executive vice president directly owned 31,344 shares of the company's stock, valued at approximately $2,730,689.28. This represents a 88.45% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders sold 2,098,608 shares of company stock valued at $172,316,688. 1.42% of the stock is owned by insiders.

Amphenol News Summary

Here are the key news stories impacting Amphenol this week:

• Positive Sentiment: Q3 results exceeded expectations: Amphenol reported adjusted earnings of $0.80 per share versus the $0.73 consensus estimate, while revenue rose 65.1% year over year to $10.23 billion, well above the $9.49 billion forecast. Growth was supported by strong IT datacom and AI-related demand, acquisitions and broad organic expansion. Amphenol Q3 earnings beat estimates
• Positive Sentiment: Outlook topped consensus: Management issued fourth-quarter and full-year 2026 guidance that was reported as exceeding analyst expectations, reinforcing confidence in continued demand across communications, computing and other end markets. Amphenol 2026 earnings guidance
• Positive Sentiment: Capital returns increased: The board authorized a $4 billion share-repurchase program and approved a quarterly dividend payable January 13, 2027. The buyback may support earnings per share and signals confidence in the company’s cash-generation outlook. Amphenol $4 billion stock repurchase plan
• Positive Sentiment: Expansion through acquisitions: Amphenol agreed to acquire AdvancedPCB Holdings and Humanetics Sensors. The deals could broaden its advanced printed-circuit-board and sensor offerings, although both remain subject to customary closing conditions and regulatory approvals. AdvancedPCB sale to Amphenol
• Neutral Sentiment: At roughly 40.7 times earnings, Amphenol carries a premium valuation. That pricing reflects strong AI and datacom growth expectations, but it also leaves the stock sensitive to any slowdown in demand, integration challenges or guidance disappointment.

About Amphenol

Amphenol Corporation NYSE: APH is a global manufacturer of electrical, electronic and fiber-optic connectors, interconnect systems and related products. Its portfolio includes cable assemblies, sensors, antennas, backplane systems, radio-frequency components and other specialized electronic hardware.

The company serves customers across a range of industries, including automotive, aerospace and defense, information technology and data communications, industrial, mobile networks, commercial aerospace, medical and other markets.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.