The Goldman Sachs Group Initiates Coverage on Applied Materials (NASDAQ:AMAT)

The Goldman Sachs Group assumed coverage on shares of Applied Materials (NASDAQ:AMAT - Free Report) in a report released on Thursday, MarketBeat.com reports. The firm issued a buy rating and a $225.00 price objective on the manufacturing equipment provider's stock.

Several other research firms also recently issued reports on AMAT. Jefferies Financial Group raised shares of Applied Materials from a "hold" rating to a "buy" rating and set a $195.00 price target for the company in a research note on Friday, March 28th. Bank of America reduced their target price on Applied Materials from $205.00 to $190.00 and set a "buy" rating on the stock in a report on Wednesday, April 16th. Wall Street Zen cut Applied Materials from a "buy" rating to a "hold" rating in a report on Saturday, June 14th. Rothschild & Co Redburn cut Applied Materials from a "buy" rating to a "neutral" rating and set a $200.00 target price on the stock. in a report on Monday. Finally, Wells Fargo & Company upped their target price on Applied Materials from $200.00 to $215.00 and gave the company an "overweight" rating in a report on Tuesday. Nine equities research analysts have rated the stock with a hold rating and seventeen have issued a buy rating to the stock. According to MarketBeat.com, Applied Materials has an average rating of "Moderate Buy" and an average target price of $203.65.

Applied Materials Price Performance

AMAT stock traded up $0.56 during midday trading on Thursday, reaching $198.59. 2,165,975 shares of the stock were exchanged, compared to its average volume of 7,094,889. The stock has a market capitalization of $159.37 billion, a PE ratio of 24.16, a P/E/G ratio of 2.18 and a beta of 1.69. Applied Materials has a 52 week low of $123.74 and a 52 week high of $255.57. The company has a debt-to-equity ratio of 0.29, a current ratio of 2.46 and a quick ratio of 1.76. The company has a fifty day moving average price of $171.06 and a 200 day moving average price of $164.77.

Applied Materials (NASDAQ:AMAT - Get Free Report) last issued its quarterly earnings data on Thursday, May 15th. The manufacturing equipment provider reported $2.39 earnings per share for the quarter, topping analysts' consensus estimates of $2.31 by $0.08. The business 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 40.15% and a net margin of 24.06%. Applied Materials's quarterly revenue was up 6.8% compared to the same quarter last year. During the same quarter in the previous year, the company posted $2.09 EPS. As a group, analysts expect that Applied Materials will post 9.38 EPS for the current fiscal year.

Applied Materials Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, September 11th. Investors of record on Thursday, August 21st will be given a $0.46 dividend. The ex-dividend date of this dividend is Thursday, August 21st. This represents a $1.84 annualized dividend and a yield of 0.93%. Applied Materials's payout ratio is 22.38%.

Insiders Place Their Bets

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

Hedge Funds Weigh In On Applied Materials

Several large investors have recently added to or reduced their stakes in the business. Silver Oak Securities Incorporated grew its stake in shares of Applied Materials by 17.3% in the 2nd quarter. Silver Oak Securities Incorporated now owns 1,766 shares of the manufacturing equipment provider's stock worth $323,000 after acquiring an additional 260 shares in the last quarter. CX Institutional grew its stake in shares of Applied Materials by 553.9% in the 2nd quarter. CX Institutional now owns 38,308 shares of the manufacturing equipment provider's stock worth $7,013,000 after acquiring an additional 32,450 shares in the last quarter. Pinnacle Bancorp Inc. grew its stake in shares of Applied Materials by 3.2% in the 2nd quarter. Pinnacle Bancorp Inc. now owns 2,271 shares of the manufacturing equipment provider's stock worth $416,000 after acquiring an additional 70 shares in the last quarter. Shelton Wealth Management LLC grew its stake in shares of Applied Materials by 1.5% in the 2nd quarter. Shelton Wealth Management LLC now owns 3,398 shares of the manufacturing equipment provider's stock worth $622,000 after acquiring an additional 51 shares in the last quarter. Finally, Lantz Financial LLC bought a new stake in shares of Applied Materials in the 2nd quarter worth $207,000. Institutional investors own 80.56% of the company's stock.

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.