Is AMETEK, Inc. (NYSE:AME) Overbought?

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AMETEK, Inc. (NYSE:AME) is at overbought status with an RSI(14) at 81.26 .

The Relative Strength Index (RSI) is a recognized technical indicator used to evaluate strengthening and weakening momentum in price action. An RSI above 70 is considered overbought and stocks are considered oversold at levels under 30. Overbought is a condition that occurs when price momentum is considered too high and the probability of decline is higher.

Volatility

AMETEK, Inc. has a beta of 1.31 so it is more volatile than the market as a whole that has a beta of 1. Stocks with beta’s lower than 1 are considered to be less risky than the market while those with a higher beta are more risky than the market.

The stock’s Average True Range (ATR) is currently 0.67. The ATR is a short term indicator of volatility. A high or low ATR doesn’t tell you which way a stock will move but is a signal that it is likely to move.

Company shares are trading at $66.50 barely above $63.58, the 50 day moving average and much higher than the 200 day moving average of $59.77. The 50 day moving average was up $2.92 or +4.59% whereas the 200 day average was up by +11.26%.

Recent news headlines for (NYSE:AME).

Dalip Puri Named Vice President And Treasurer.

Short Interest

Traders are feeling more bullish on AMETEK, Inc. if you consider the fall in short interest. The stock realized a fall in short interest of -9.13% between August 15, 2017 and August 31, 2017. Short interest fell 298,910 over that timeframe. Days to cover increased 1.0 to 4.0 and the percentage of shorted shares is 0.01% as of August 31.

Insider Activity

AMETEK, Inc. (NYSE:AME) has been the object of insider selling activity recently. John Wesley Hardin, PRES. – ELECTRONIC INSTRUMENTS sold $167,726 worth of shares at an average price of $64.51 on Fri the 4th. That brings Hardin’s holdings to $3,851,118 as reported to the SEC.

Recent Analyst Ratings

On August 3 BMO Capital maintained a stock rating of “Outperform” and raised the price expectation to $69.00 from $60.00.

Additionally AMETEK, Inc. recently declared a dividend to be paid on Friday September 29th, 2017. The dividend will be $0.090 per share for the quarter which comes to $0.36 on an annualized basis. The dividend yield will be $0.55. The ex-dividend date will be Thursday the 14th of September 2017.

The most current P/E ratio is 29.18 and the market cap is 15.35B. As of the last earnings report the EPS was $2.28 and is projected to be $2.52 for the current year with 230,795,000 shares presently outstanding. Next quarter’s EPS is estimated at $0.65 with next year’s EPS anticipated to be $2.80.

Company Information

AMETEK, Inc., launched on May 8, 1986, is a manufacturer of electronic instruments and electromechanical devices with operations in North America, Europe, Asia and South America. The Company operates through two segments: Electronic Instruments (EIG) and Electromechanical (EMG). EIG designs and manufactures instruments for the process, power and industrial and aerospace markets. EMG is a differentiated supplier of precision motion control solutions, thermal management systems, specialty metals and electrical interconnects. Its end markets include aerospace and defense, medical, automation, mass transit, petrochemical and other industrial markets..