Why Did Amphenol Plunge 6.8% Amid Patent Dispute?

On April 3, 2025, Amphenol's stock experienced a significant drop of 6.8% in pre-market trading, reflecting a notable decline in investor sentiment.

Amphenol Corporation is currently facing patent infringement allegations from Credo, which could potentially impact its operations and financial performance. This legal dispute involves active electrical cables, a critical component of Amphenol's product portfolio.

Investors are closely monitoring Amphenol's stock due to recent movements in the options market. The April 17, 2025 $35.00 Put option has shown high levels of implied volatility, indicating that traders are anticipating a significant price movement in the near future. This heightened volatility could be attributed to upcoming events or market expectations.

Despite the recent volatility, Amphenol remains a Zacks Rank #2 (Buy) in the Electronics - Connectors industry, which ranks in the Top 1% of Zacks Industry Rank. Over the past 60 days, two analysts have increased their earnings estimates for the current quarter, while none have decreased their estimates. The Zacks Consensus Estimate for the current quarter has been revised from 49 cents per share to 52 cents per share.

Mitsubishi UFJ Asset Management Co. Ltd. has increased its stake in Amphenol, indicating continued investor confidence in the company's long-term prospects. This move suggests that institutional investors are optimistic about Amphenol's future performance despite the recent legal challenges and market volatility.