Aptiv PLC (APTV) Clearly Signals Buy-Into the Stock: Don’t ignore the signals

Aptiv PLC (NYSE: APTV) stock fell -0.87% on Thursday to $89.71 against a previous-day closing price of $90.50. With 2.65 million shares changed hands, the volume of the stock remained heavier than its average volume of 1.91 million shares. During the session, the Auto Parts company that operates in wider Consumer Cyclical sector, reached to the highest price of $91.09 whereas the lowest price it dropped to was $88.66. The 52-week range on APTV shows that it touched its highest point at $124.88 and its lowest point at $77.96 during that stretch. It currently has a 1-year price target of $124.80. Beta for the stock currently stands at 2.02.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of APTV was down-trending over the past week, with a drop of -5.40%, but this was down by -12.78% over a month. Three-month performance dropped to -21.95% while six-month performance fell -16.21%. The stock lost -1.49% in the past year, while it has lost -3.67% so far this year. A look at the trailing 12-month EPS for APTV yields 2.23 with Next year EPS estimates of 6.03. For the next quarter, that number is 0.98. This implies an EPS growth rate of 0.80% for this year and 39.31% for next year. EPS is expected to grow by 32.70% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -13.30%.

Float and Shares Shorts:

At present, 271.01 million APTV shares are outstanding with a float of 269.86 million shares on hand for trading. On Apr 27, 2023, short shares totaled 5.02 million, which was 1.85% higher than short shares on Mar 30, 2023. In addition to Mr. Kevin P. Clark as the firm’s Pres, Chairman & CEO, Mr. Joseph R. Massaro serves as its Sr. VP of Bus. Operations & CFO.

Institutional Ownership:

Through their ownership of 99.00% of APTV’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 60.38% of APTV, in contrast to 37.60% held by mutual funds. Shares owned by individuals account for 0.86%. As the largest shareholder in APTV with 10.68% of the stake, The Vanguard Group, Inc. holds 28,923,678 shares worth 28,923,678. A second-largest stockholder of APTV, BlackRock Fund Advisors, holds 13,197,110 shares, controlling over 4.87% of the firm’s shares. SSgA Funds Management, Inc. is the third largest shareholder in APTV, holding 10,097,771 shares or 3.73% stake. With a 3.11% stake in APTV, the Vanguard Total Stock Market ETF is the largest stakeholder. A total of 8,423,322 shares are owned by the mutual fund manager. The Vanguard 500 Index Fund, which owns about 2.35% of APTV stock, is the second-largest Mutual Fund holder. It holds 6,359,436 shares valued at 654.13 million. Vanguard Mid Cap Index Fund holds 2.33% of the stake in APTV, owning 6,319,870 shares worth 650.06 million.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Mar 30, 2023, APTV reported revenue of $4.06B and operating income of $116.00M. The EBITDA in the recently reported quarter was $303.00M and diluted EPS was -$0.23.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for APTV since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With APTV analysts setting a high price target of $150.00 and a low target of $81.00, the average target price over the next 12 months is $124.27. Based on these targets, APTV could surge 67.21% to reach the target high and fall by -9.71% to reach the target low. Reaching the average price target will result in a growth of 38.52% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.

Summary of Insider Activity:

Insiders traded APTV stock several times over the past three months with 24 Buys and 20 Sells. In these transactions, 475,630 shares were bought while 208,300 shares were sold. The number of buy transactions has increased to 24 while that of sell transactions has risen to 79 over the past year. The total number of shares bought during that period was 475,630 while 332,210 shares were sold.

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