Applied Materials, Inc. (NASDAQ:AMAT) Given Consensus Recommendation of "Moderate Buy" by Analysts

Key Points

• Applied Materials, Inc. has received an average rating of "Moderate Buy" from 25 research firms, with 17 analysts issuing buy ratings and 8 holding the stock.
• Recent price target adjustments include upgrades and downgrades, with JPMorgan reducing its target from $240 to $210 and Rothschild cut it from buy to neutral with a target of $200.
• The company recently declared a quarterly dividend of $0.46 per share, resulting in an annualized dividend yield of 1.0%.

Applied Materials, Inc. (NASDAQ:AMAT - Get Free Report) has received a consensus recommendation of "Moderate Buy" from the twenty-five brokerages that are presently covering the company, MarketBeat.com reports. Eight research analysts have rated the stock with a hold rating and seventeen have issued a buy rating on the company. The average 12-month target price among analysts that have updated their coverage on the stock in the last year is $204.0870.

A number of research firms recently commented on AMAT. Citigroup lifted their price objective on Applied Materials from $190.00 to $220.00 and gave the stock a "buy" rating in a research note on Monday, July 7th. Bank of America reduced their price objective on Applied Materials from $205.00 to $190.00 and set a "buy" rating for the company in a research note on Wednesday, April 16th. Wall Street Zen cut Applied Materials from a "buy" rating to a "hold" rating in a research report on Saturday, June 14th. Redburn Atlantic cut Applied Materials from a "strong-buy" rating to a "hold" rating and cut their target price for the company from $225.00 to $200.00 in a research report on Monday, July 7th. Finally, Needham & Company LLC reissued a "buy" rating and issued a $195.00 price objective on shares of Applied Materials in a research report on Friday, May 16th.

Applied Materials Price Performance

Shares of AMAT traded down $3.67 during trading hours on Friday, hitting $179.15. 5,152,266 shares of the company were exchanged, compared to its average volume of 7,253,461. The firm's fifty day moving average is $180.42 and its 200 day moving average is $166.71. The company has a market cap of $143.77 billion, a price-to-earnings ratio of 21.79, a P/E/G ratio of 2.00 and a beta of 1.70. The company has a quick ratio of 1.76, a current ratio of 2.46 and a debt-to-equity ratio of 0.29. Applied Materials has a fifty-two week low of $123.74 and a fifty-two week high of $215.70.

Applied Materials (NASDAQ:AMAT - Get Free Report) last posted its earnings results on Thursday, May 15th. The manufacturing equipment provider reported $2.39 EPS for the quarter, beating the consensus estimate of $2.31 by $0.08. The firm had revenue of $7.10 billion during the quarter, compared to the consensus estimate of $7.12 billion. Applied Materials had a return on equity of 40.15% and a net margin of 24.06%. The business's quarterly revenue was up 6.8% on a year-over-year basis. During the same period last year, the company earned $2.09 earnings per share. On average, equities analysts anticipate that Applied Materials will post 9.38 earnings per share for the current fiscal year.

Applied Materials Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, September 11th. Stockholders of record on Thursday, August 21st will be issued a $0.46 dividend. This represents a $1.84 dividend on an annualized basis and a dividend yield of 1.0%. The ex-dividend date is Thursday, August 21st. Applied Materials's dividend payout ratio is presently 22.38%.

Insider Activity

In other news, CAO Adam Sanders sold 562 shares of the company's stock in a transaction dated Tuesday, June 24th. The stock was sold at an average price of $178.60, for a total value of $100,373.20. Following the completion of the transaction, the chief accounting officer directly owned 5,300 shares in the company, valued at approximately $946,580. This represents a 9.59% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Insiders own 0.24% of the company's stock.

Institutional Investors Weigh In On Applied Materials

Several institutional investors have recently bought and sold shares of AMAT. Maseco LLP purchased a new stake in Applied Materials in the 2nd quarter worth approximately $30,000. Runnymede Capital Advisors Inc. increased its holdings in shares of Applied Materials by 972.2% in the 1st quarter. Runnymede Capital Advisors Inc. now owns 193 shares of the manufacturing equipment provider's stock worth $28,000 after purchasing an additional 175 shares in the last quarter. Smallwood Wealth Investment Management LLC bought a new stake in shares of Applied Materials in the first quarter worth $29,000. Clal Insurance Enterprises Holdings Ltd grew its holdings in shares of Applied Materials by 435.0% in the first quarter. Clal Insurance Enterprises Holdings Ltd now owns 214 shares of the manufacturing equipment provider's stock worth $31,000 after acquiring an additional 174 shares during the period. Finally, Activest Wealth Management grew its holdings in shares of Applied Materials by 5,325.0% in the first quarter. Activest Wealth Management now owns 217 shares of the manufacturing equipment provider's stock worth $31,000 after acquiring an additional 213 shares during the period. 80.56% of the stock is currently owned by hedge funds and other institutional investors.

About Applied Materials

Applied Materials, Inc engages in the provision of manufacturing equipment, services, and software to the semiconductor, display, and related industries. The company operates through three segments: Semiconductor Systems, Applied Global Services, and Display and Adjacent Markets. The Semiconductor Systems segment develops, manufactures, and sells various manufacturing equipment that is used to fabricate semiconductor chips or integrated circuits.