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

Applied Materials, Inc. (NASDAQ:AMAT - Get Free Report) has been given an average recommendation of "Moderate Buy" by the twenty-two brokerages that are presently covering the stock, Marketbeat Ratings reports. One equities research analyst has rated the stock with a sell rating, five have issued a hold rating and sixteen have assigned a buy rating to the company. The average twelve-month target price among brokers that have issued a report on the stock in the last year is $199.48.

Several brokerages recently commented on AMAT. Barclays cut their price target on shares of Applied Materials from $190.00 to $160.00 and set an "equal weight" rating on the stock in a research note on Tuesday, April 22nd. Stifel Nicolaus cut their price target on shares of Applied Materials from $235.00 to $195.00 and set a "buy" rating on the stock in a research note on Tuesday, April 15th. Citigroup lifted their price target on shares of Applied Materials from $170.00 to $190.00 and gave the stock a "buy" rating in a research note on Friday. TD Cowen lowered their price objective on shares of Applied Materials from $225.00 to $220.00 and set a "buy" rating on the stock in a research report on Friday. Finally, Needham & Company LLC reaffirmed a "buy" rating and issued a $195.00 target price on shares of Applied Materials in a report on Friday.

Applied Materials Stock Performance

Shares of NASDAQ:AMAT opened at $165.94 on Tuesday. The firm has a market cap of $134.82 billion, a PE ratio of 21.69, a price-to-earnings-growth ratio of 1.81 and a beta of 1.71. The firm's 50 day simple moving average is $149.52 and its 200-day simple moving average is $165.12. Applied Materials has a one year low of $123.74 and a one year high of $255.89. The company has a debt-to-equity ratio of 0.29, a quick ratio of 1.96 and a current ratio of 2.67.

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

Applied Materials Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, June 12th. Stockholders of record on Thursday, May 22nd will be issued a dividend of $0.46 per share. This represents a $1.84 annualized dividend and a dividend yield of 1.11%. This is a boost from Applied Materials's previous quarterly dividend of $0.40. The ex-dividend date is Thursday, May 22nd. Applied Materials's dividend payout ratio is 22.38%.

Applied Materials announced that its Board of Directors has initiated a stock buyback program on Monday, March 10th that permits the company to buyback $10.00 billion in outstanding shares. This buyback authorization permits the manufacturing equipment provider to purchase up to 8.2% of its shares through open market purchases. Shares buyback programs are generally a sign that the company's board of directors believes its shares are undervalued.

Insider Activity

In other news, CEO Gary E. Dickerson acquired 50,000 shares of the business's stock in a transaction dated Thursday, April 3rd. The shares were acquired at an average cost of $137.30 per share, with a total value of $6,865,000.00. Following the completion of the acquisition, 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 ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which is accessible through this link. Also, CAO Adam Sanders sold 271 shares of the firm's stock in a transaction dated Monday, February 24th. The stock was sold at an average price of $172.72, for a total value of $46,807.12. Following the sale, the chief accounting officer now directly owns 6,479 shares in the company, valued at approximately $1,119,052.88. This trade represents a 4.01% decrease in their ownership of the stock. The disclosure for this sale can be found here. Corporate insiders own 0.24% of the company's stock.

Hedge Funds Weigh In On Applied Materials

A number of institutional investors have recently added to or reduced their stakes in the stock. Crews Bank & Trust purchased a new stake in Applied Materials during the 4th quarter valued at approximately $28,000. FPC Investment Advisory Inc. purchased a new position in shares of Applied Materials during the 4th quarter worth approximately $28,000. Runnymede Capital Advisors Inc. raised its stake in shares of Applied Materials by 972.2% during the 1st quarter. Runnymede Capital Advisors Inc. now owns 193 shares of the manufacturing equipment provider's stock worth $28,000 after buying an additional 175 shares in the last quarter. Smallwood Wealth Investment Management LLC purchased a new position in shares of Applied Materials during the 1st quarter worth approximately $29,000. Finally, Clal Insurance Enterprises Holdings Ltd boosted its holdings in Applied Materials by 435.0% during the first quarter. Clal Insurance Enterprises Holdings Ltd now owns 214 shares of the manufacturing equipment provider's stock worth $31,000 after buying an additional 174 shares in the last quarter. Hedge funds and other institutional investors own 80.56% of the company's stock.

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.

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