TLDR
- APH stock dropped 6.29% as traders locked in profits following a strong post-earnings rally
- Q1 2026 EPS came in at $1.06, beating estimates of $0.95; revenue hit $7.62B vs $7.08B expected
- Wall Street Zen and Zacks both downgraded APH to “Hold” from “Buy”
- CEO Richard Norwitt sold over 515,000 shares in February worth ~$75.9M
- Consensus target price remains $176.53 with 13 Buy ratings and 2 Hold ratings
Amphenol (APH) stock dropped 6.29% on Friday, opening at $127.72, as investors pulled back after a period of strong gains.
The selloff appears tied to profit-taking rather than any change in the company’s business performance. APH had rallied heading into earnings, and some traders are now cashing out.
Q1 2026 results were strong. EPS came in at $1.06, beating the $0.95 consensus estimate. Revenue reached $7.62 billion, well above the $7.08 billion expected — a 58.4% jump compared to the same quarter last year.
For Q2 2026, the company guided EPS in the range of $1.14 to $1.16. Analysts are currently forecasting full-year EPS of $4.76.
Despite the beat, the market appears to be questioning whether the current valuation is justified. APH trades at a P/E of 36.70 with a PEG ratio of 1.20.
Downgrades Add Pressure
Wall Street Zen moved APH from “Buy” to “Hold” on Saturday. Zacks made the same move back in March, citing valuation concerns.
That said, the broader analyst picture still leans positive. Of 15 analysts covering the stock, 13 carry a Buy rating and just 2 a Hold. The consensus target price sits at $176.53.
Evercore raised its target to $180 with an “Outperform” rating after earnings. Truist went further, lifting its target to $200 and reiterating “Buy.” Barclays also kept its “Overweight” rating with a $180 target.
Insider Selling Adds to Caution
CEO Richard Adam Norwitt sold 515,281 shares in February at an average price of $147.27, totalling around $75.9 million. That represented a 21.09% cut in his direct ownership.
Across all insiders, 646,056 shares have been sold over the last 90 days — worth roughly $94.6 million combined.
Insider sales don’t always signal trouble, but the timing and size of this one has drawn attention.
On the institutional side, ownership remains high at 97.01%. Several smaller funds added new positions in Q4 and Q1, though at modest sizes.
One added factor weighing on sentiment: a recent senior notes issuance has pushed the debt-to-equity ratio to 1.18. That’s not alarming, but it adds a layer of caution for some investors watching the balance sheet.
The stock’s 12-month range runs from $80.32 to $167.04. Its 50-day moving average sits at $137.31, and the 200-day at $139.35 — both now above the current price.
APH’s year-to-date performance still shows a gain of 1.30%, and its technical sentiment signal remains a Buy. The company’s quarterly dividend is still in place.
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