David M. Silverman, Senior Vice President of Human Resources at Amphenol Corp (NYSE:APH), recently executed a significant stock transaction. On October 29, Silverman sold 180,000 shares of Amphenol's Class A Common Stock. The shares were sold at an average price of $68.8441, totaling approximately $12.4 million. This transaction was conducted in multiple trades, with prices ranging from $68.79 to $68.95 per share.
In a related move, Silverman also acquired 180,000 shares through the exercise of stock options at a price of $14.50 per share. Following these transactions, Silverman's direct ownership stands at 14,000 shares. These transactions reflect the impact of Amphenol's 2-for-1 stock split, which took effect on June 11, 2024.
In other recent news, Amphenol Corporation (NYSE:APH) reported record-breaking Q3 sales of $4.39 billion, marking a 26% increase year-over-year, and earnings per share (EPS) of $0.50. Analysts from Truist Securities and BofA Securities responded positively to these developments, raising the stock price target for Amphenol to $82.00 and $74.00 respectively. TD Cowen also maintained its Hold rating on the stock, acknowledging Amphenol's sustained organic growth and solid booking-to-billing ratios, as well as the company's strategic use of artificial intelligence (AI) in its business operations.
The company's robust performance was driven by strong growth across multiple market segments, particularly in IT datacom, which saw a 60% increase due to high demand for AI applications. Additionally, Amphenol is set to finalize the acquisition of the Andrew business in the first quarter of 2025, a move that is expected to contribute to the company's growth.
Amphenol Corporation also announced that its Board of Directors has approved a fourth quarter 2024 dividend of $0.165 per share, slated for payment on January 8, 2025, to shareholders who are on record as of December 17, 2024. This decision reflects the company's ongoing financial strategies and commitment to providing shareholder value. These recent developments provide valuable insights into the company's financial health and future growth prospects.
InvestingPro Insights
Amphenol Corp's recent stock performance and financial metrics provide additional context to David M. Silverman's transaction. According to InvestingPro data, Amphenol's stock has shown impressive strength, with a 71.17% total return over the past year and a 38.78% return year-to-date. The company is currently trading near its 52-week high, with its price at 94.26% of the peak.
Financially, Amphenol demonstrates solid performance with a market capitalization of $80.94 billion and revenue of $14.23 billion over the last twelve months. The company's profitability is evident, with a gross profit margin of 33.57% and an operating income margin of 21.25%.
InvestingPro Tips highlight Amphenol's consistent dividend growth, having raised its dividend for 12 consecutive years and maintained payments for 20 years. This commitment to shareholder returns aligns with the company's strong financial position, as liquid assets exceed short-term obligations and the company operates with a moderate level of debt.
It's worth noting that while Amphenol's stock has performed well, it is trading at a high P/E ratio of 36.7 and a high Price / Book multiple of 8.55, suggesting a premium valuation. This could provide context for Silverman's decision to sell a portion of his holdings after exercising options.
For investors seeking a deeper understanding of Amphenol's prospects, InvestingPro offers 16 additional tips, which can provide valuable insights into the company's financial health and market position.
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