Amphenol Slides to 130th in Trading Volume Despite 84% EPS Surge and Strategic AI Expansion

Amphenol (APH) fell 1.38% on August 15, 2025, with a trading volume of $0.71 billion, ranking 130th in the market. The stock’s decline contrasts with its strong Q2 earnings performance, which saw adjusted earnings per share (EPS) surge 84% to $0.81 and revenue rise 57% to $5.65 billion, exceeding estimates. The growth was driven by robust demand in IT datacom and data center infrastructure, with Communications Solutions segment revenue jumping 101% to $2.91 billion. Free cash flow more than doubled year-over-year to $1.12 billion, supporting a $360 million shareholder return through buybacks and dividends.

Institutional confidence in the stock grew, with the National Pension Service increasing its stake by 3.9% to 2.87 million shares, valued at $188 million. Conversely, Varenne Capital Partners reduced its holdings by 69%, retaining 117,527 shares (2.8% of its portfolio). Analysts maintained a positive outlook, with JPMorgan and UBS raising price targets to $125 and $120, respectively, while nine firms assigned a “buy” rating. Despite these upgrades, the stock’s 43.73 P/E ratio and 1.13 beta suggest valuation concerns.

Amphenol’s recent dividend announcement of $0.165 per share, payable October 8, reflects a 26.3% payout ratio. Insider activity, however, showed mixed signals: William Doherty and Luc Walter sold shares totaling $77.7 million in the last quarter, though insiders still own 1.67% of the stock. The company’s strategic focus on AI-driven datacom growth and recent acquisitions, including Narda-MITEQ, underpin its long-term resilience. Management guided for Q3 revenue of $5.4–5.5 billion and adjusted EPS of $0.77–0.79, signaling cautious optimism.

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