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

Applied Materials, Inc. (NASDAQ:AMAT - Get Free Report) has been given a consensus rating of "Moderate Buy" by the twenty-two analysts that are presently covering the firm, Marketbeat.com reports. Six research analysts have rated the stock with a hold rating and sixteen have issued a buy rating on the company. The average 12-month target price among brokerages that have issued ratings on the stock in the last year is $199.29.

Several brokerages have recently commented on AMAT. Bank of America decreased their price target on Applied Materials from $205.00 to $190.00 and set a "buy" rating on the stock in a research note on Wednesday, April 16th. Edward Jones raised Applied Materials from a "hold" rating to a "buy" rating in a research report on Wednesday, March 12th. Raymond James reaffirmed an "outperform" rating and set a $200.00 price objective (down from $225.00) on shares of Applied Materials in a research report on Friday, May 16th. Mizuho cut their target price on Applied Materials from $205.00 to $195.00 and set an "outperform" rating for the company in a research note on Friday, May 16th. Finally, Needham & Company LLC reaffirmed a "buy" rating and issued a $195.00 price objective on shares of Applied Materials in a research note on Friday, May 16th.

Applied Materials Stock Down 2.5%

Shares of AMAT stock opened at $170.59 on Friday. The stock has a market cap of $136.90 billion, a P/E ratio of 22.30, a P/E/G ratio of 1.81 and a beta of 1.67. Applied Materials has a twelve month low of $123.74 and a twelve month high of $255.89. The stock has a 50 day moving average of $156.02 and a 200 day moving average of $163.20. The company has a current ratio of 2.67, a quick ratio of 1.96 and a debt-to-equity ratio of 0.29.

Applied Materials (NASDAQ:AMAT - Get Free Report) last issued its quarterly earnings results on Thursday, May 15th. The manufacturing equipment provider reported $2.39 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.31 by $0.08. The firm had revenue of $7.10 billion for the quarter, compared to analyst estimates of $7.12 billion. Applied Materials had a return on equity of 39.50% and a net margin of 22.95%. The business's revenue was up 6.8% on a year-over-year basis. During the same period in the previous year, the company posted $2.09 earnings per share. As a group, sell-side analysts expect that Applied Materials will post 9.38 EPS for the current year.

Applied Materials declared that its board has approved a stock buyback program on Monday, March 10th that allows the company to repurchase $10.00 billion in outstanding shares. This repurchase authorization allows the manufacturing equipment provider to reacquire up to 8.2% of its stock through open market purchases. Stock repurchase programs are typically an indication that the company's board believes its stock is undervalued.

Applied Materials Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, September 11th. Shareholders of record on Thursday, August 21st will be paid a dividend of $0.46 per share. This represents a $1.84 dividend on an annualized basis and a dividend yield of 1.08%. The ex-dividend date is Thursday, August 21st. Applied Materials's dividend payout ratio is presently 22.38%.

Insider Buying and Selling

In other news, CAO Adam Sanders sold 450 shares of the company's stock in a transaction that occurred on Tuesday, April 1st. The stock was sold at an average price of $144.83, for a total transaction of $65,173.50. Following the completion of the transaction, the chief accounting officer now directly owns 6,077 shares of the company's stock, valued at approximately $880,131.91. This represents a 6.89% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Gary E. Dickerson acquired 50,000 shares of Applied Materials stock in a transaction dated Thursday, April 3rd. The shares were acquired at an average price of $137.30 per share, with a total value of $6,865,000.00. Following the completion of the transaction, the chief executive officer now owns 1,716,058 shares of the company's stock, valued at approximately $235,614,763.40. This trade represents a 3.00% increase in their position. The disclosure for this purchase can be found here. Insiders own 0.24% of the company's stock.

Institutional Investors Weigh In On Applied Materials

A number of institutional investors have recently added to or reduced their stakes in the company. FPC Investment Advisory Inc. acquired a new stake in shares of Applied Materials during the 4th quarter valued at $28,000. Runnymede Capital Advisors Inc. boosted its holdings in Applied Materials by 972.2% during the first quarter. Runnymede Capital Advisors Inc. now owns 193 shares of the manufacturing equipment provider's stock valued at $28,000 after acquiring an additional 175 shares during the period. Smallwood Wealth Investment Management LLC bought a new stake in shares of Applied Materials in the first quarter valued at about $29,000. Clal Insurance Enterprises Holdings Ltd lifted its stake 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 valued at $31,000 after buying an additional 174 shares during the period. Finally, Activest Wealth Management lifted its stake in Applied Materials by 5,325.0% during the first quarter. Activest Wealth Management now owns 217 shares of the manufacturing equipment provider's stock worth $31,000 after purchasing an additional 213 shares during the period. 80.56% of the stock is currently owned by institutional investors and hedge funds.

Applied Materials Company Profile

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.

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