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Amphenol announces stock split and adjusted dividend

EditorFrank DeMatteo
Published 06/12/2024, 08:58 AM
APH
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WALLINGFORD, CT – Amphenol Corporation (NYSE:APH), a leading manufacturer of electronic connectors, has announced the completion of a two-for-one stock split and an adjustment to its upcoming quarterly dividend. This follows the company's previous declarations regarding shareholder returns.

The stock split, which was distributed on Tuesday to holders of record as of May 31, 2024, has effectively doubled the number of shares while halving the stock price, making the company's shares more accessible to a broader base of investors.

Consequently, the dividend amount has been adjusted to reflect the stock split. Shareholders of record as of Monday will receive a dividend of $0.11 per share, instead of the previously announced $0.22 per share. The payment date for this dividend remains scheduled for July 10, 2024.

The company's announcement, made through a Form 8-K filing with the Securities and Exchange Commission, also included forward-looking statements. These statements outlined expectations for the company’s future business performance, acknowledging the inherent risks and uncertainties in such predictions. Amphenol emphasized that it does not intend to update any forward-looking statements unless required by law.

This news comes after a period of growth for Amphenol, which has been expanding its presence in the electronic connectors market. The company's strategic decisions, including the stock split and dividend adjustment, are part of its ongoing efforts to enhance shareholder value.

Investors and market watchers often view stock splits as a sign of a company's confidence in its continued growth prospects. However, it is essential to note that such corporate actions do not affect the fundamental value of the company.

The information provided in this article is based on the latest SEC filing by Amphenol Corporation and does not include any speculative content or subjective assessment of the company's market position.

In other recent news, Amphenol Corporation has been the subject of several positive financial projections. Citi has maintained a Buy rating on Amphenol, raising the price target to $160 from $135, reflecting an optimistic outlook for the company's revenue and earnings per share (EPS) growth, potentially driven by factors such as an improving connector market, increased interconnect content in AI servers, and the recent acquisition of CIT. Similarly, Truist Securities has increased its price target for Amphenol to $149, factoring in the financial implications of the CIT acquisition, while Baird has also upped its price target to $137, citing growth drivers like advancements in AI sales and performance in the automotive sector.

Edward Jones has reaffirmed its Buy rating on Amphenol, based on the company's valuation and relative market performance. The firm anticipates a 12% long-term earnings growth for the company, despite a current trading valuation higher than its historical average.

In addition to these financial projections, Amphenol has announced a two-for-one stock split, aiming to make its shares more accessible to a broader investor base. These are the recent developments for Amphenol, shedding light on the company's future financial trajectory and strategic moves.

InvestingPro Insights

Following Amphenol Corporation's recent stock split and dividend adjustment, a closer look at the company's financial metrics provides additional context for investors. With a robust market capitalization of $80.74 billion, Amphenol trades at a forward P/E ratio of 39.27, reflecting investor confidence in its earnings potential. The company's commitment to shareholder returns is underscored by its impressive track record of raising dividends for 20 consecutive years, a testament to its financial stability and growth outlook.

InvestingPro Tips highlight Amphenol's position as a prominent player in the Electronic Equipment, Instruments & Components industry, with a notable return of 70.43% over the past year. This performance is indicative of the company's robust operational strategy and market confidence. Additionally, Amphenol's liquidity position is strong, with liquid assets surpassing short-term obligations, providing a cushion for future investments or economic downturns.

For investors seeking further insights and tips on Amphenol Corporation, InvestingPro offers additional tips and metrics to help make informed decisions. By using the coupon code PRONEWS24, readers can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, accessing a wealth of financial analysis and market data. With 19 additional InvestingPro Tips available, investors can gain a deeper understanding of Amphenol's market position and future potential.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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