AMETEK (NYSE:AME) Issues Earnings Results

Key Points

• AMETEK exceeded earnings expectations, reporting quarterly EPS of $2.21 versus the $2.11 consensus estimate. Revenue increased 17.3% year over year, while EPS rose from $1.89 in the prior-year quarter.
• Shares opened at $250.46 and were reported up 3.5%, with the stock trading near its 12-month high of $261.16. Analysts maintain a consensus “Moderate Buy” rating and an average price target of $277.19.
• AMETEK declared a quarterly dividend of $0.34 per share, equivalent to $1.36 annually and a 0.5% yield. An insider also sold 6,608 shares, reducing direct ownership by 13.45%.

AMETEK (NYSE:AME - Get Free Report) posted its earnings results on Tuesday. The technology company reported $2.21 earnings per share for the quarter, topping analysts' consensus estimates of $2.11 by $0.10, Zacks reports. AMETEK had a net margin of 20.04% and a return on equity of 16.93%. During the same quarter in the previous year, the firm earned $1.89 EPS. The company's revenue was up 17.3% on a year-over-year basis.

AMETEK Stock Up 3.5%

Shares of NYSE:AME opened at $250.46 on Tuesday. The business's 50 day moving average is $243.59 and its 200 day moving average is $234.20. AMETEK has a 12-month low of $188.47 and a 12-month high of $261.16. The stock has a market cap of $57.40 billion, a price-to-earnings ratio of 36.05, a PEG ratio of 2.35 and a beta of 0.96. The company has a quick ratio of 0.76, a current ratio of 1.21 and a debt-to-equity ratio of 0.09.

AMETEK Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, September 30th. Shareholders of record on Tuesday, September 15th were paid a dividend of $0.34 per share. The ex-dividend date was Tuesday, September 15th. This represents a $1.36 dividend on an annualized basis and a yield of 0.5%. AMETEK's payout ratio is 19.88%.

Insider Activity at AMETEK

In related news, insider David Hermance sold 6,608 shares of the stock in a transaction that occurred on Friday, August 7th. The stock was sold at an average price of $254.00, for a total transaction of $1,678,432.00. Following the completion of the sale, the insider directly owned 42,509 shares of the company's stock, valued at approximately $10,797,286. This trade represents a 13.45% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. 0.54% of the stock is currently owned by corporate insiders.

Wall Street Analyst Weigh In

Several brokerages recently commented on AME. KeyCorp upped their target price on AMETEK from $260.00 to $295.00 and gave the company an "overweight" rating in a report on Wednesday, August 5th. Vertical Research initiated coverage on shares of AMETEK in a report on Tuesday, September 8th. They set a "buy" rating and a $255.00 price target for the company. Mizuho boosted their price target on shares of AMETEK from $270.00 to $285.00 and gave the stock an "outperform" rating in a research report on Wednesday, August 5th. Seaport Research Partners upped their price objective on shares of AMETEK from $290.00 to $300.00 and gave the company a "buy" rating in a research note on Wednesday, September 2nd. Finally, Zacks Research raised shares of AMETEK from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, October 6th. One research analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and five have assigned a Hold rating to the stock. According to data from MarketBeat, AMETEK presently has a consensus rating of "Moderate Buy" and an average target price of $277.19.

About AMETEK

AMETEK, Inc is a global manufacturer of industrial technology solutions. The company develops and produces advanced analytical, monitoring, testing, and measurement instruments, as well as engineered electromechanical products used in industrial, aerospace, defense, energy, medical, and other specialized markets.

AMETEK operates through two primary business groups: Electronic Instruments and Electromechanical. Its products include process and power monitoring systems, analytical instruments, automation and control technologies, aerospace and defense equipment, precision motion-control systems, motors, thermal-management solutions, engineered materials, and specialty metal products.

The company traces its roots to 1930 and has expanded through the development and acquisition of specialized technology businesses.

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