Wall Street Zen Downgrades Applied Materials (NASDAQ:AMAT) to Hold

Applied Materials (NASDAQ:AMAT - Get Free Report) was downgraded by Wall Street Zen from a "buy" rating to a "hold" rating in a research report issued on Saturday.

Other research analysts also recently issued research reports about the stock. Needham & Company LLC restated a "buy" rating and set a $195.00 price target on shares of Applied Materials in a report on Friday, May 16th. Bank of America cut their price target on shares of Applied Materials from $205.00 to $190.00 and set a "buy" rating on the stock in a report on Wednesday, April 16th. Morgan Stanley upgraded shares of Applied Materials from an "underweight" rating to an "equal weight" rating and cut their price target for the company from $162.00 to $158.00 in a report on Friday, June 6th. Jefferies Financial Group upgraded shares of Applied Materials from a "hold" rating to a "buy" rating and set a $195.00 price target on the stock in a report on Friday, March 28th. Finally, Barclays dropped their target price on shares of Applied Materials from $190.00 to $160.00 and set an "equal weight" rating on the stock in a report on Tuesday, April 22nd. Seven equities research analysts have rated the stock with a hold rating and sixteen have given a buy rating to the stock. Based on data from MarketBeat, Applied Materials currently has a consensus rating of "Moderate Buy" and a consensus price target of $199.29.

Applied Materials Stock Down 2.5%

Shares of NASDAQ:AMAT traded down $4.41 during trading on Friday, reaching $170.59. 5,292,961 shares of the company traded hands, compared to its average volume of 6,974,281. The firm has a fifty day simple moving average of $156.02 and a 200 day simple moving average of $163.20. The firm has a market cap of $136.90 billion, a P/E ratio of 22.30, a price-to-earnings-growth ratio of 1.81 and a beta of 1.67. Applied Materials has a 1-year low of $123.74 and a 1-year high of $255.89. The company has a quick ratio of 1.96, a current ratio of 2.67 and a debt-to-equity ratio of 0.29.

Applied Materials (NASDAQ:AMAT - Get Free Report) last issued its earnings results on Thursday, May 15th. The manufacturing equipment provider reported $2.39 earnings per share (EPS) 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 analyst estimates of $7.12 billion. Applied Materials had a net margin of 22.95% and a return on equity of 39.50%. The company's revenue for the quarter was up 6.8% on a year-over-year basis. During the same quarter last year, the business posted $2.09 EPS. Analysts anticipate that Applied Materials will post 9.38 earnings per share for the current fiscal year.

Applied Materials declared that its Board of Directors has initiated a stock repurchase plan 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 repurchase up to 8.2% of its stock through open market purchases. Stock buyback plans are usually a sign that the company's leadership believes its stock is undervalued.

Insider Activity at Applied Materials

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 value of $65,173.50. Following the sale, the chief accounting officer now directly owns 6,077 shares in the company, valued at approximately $880,131.91. This represents a 6.89% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Also, CEO Gary E. Dickerson acquired 50,000 shares of the stock in a transaction dated Thursday, April 3rd. The stock was bought at an average price of $137.30 per share, for a total transaction of $6,865,000.00. Following the completion of the purchase, the chief executive officer now owns 1,716,058 shares in the company, 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. Corporate insiders own 0.24% of the company's stock.

Institutional Investors Weigh In On Applied Materials

Several large investors have recently modified their holdings of AMAT. FPC Investment Advisory Inc. acquired a new position in shares of Applied Materials in the 4th quarter worth approximately $28,000. Runnymede Capital Advisors Inc. boosted 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 acquiring an additional 175 shares in the last quarter. Smallwood Wealth Investment Management LLC acquired a new position in shares of Applied Materials in the 1st quarter worth approximately $29,000. Clal Insurance Enterprises Holdings Ltd boosted its holdings in shares of Applied Materials by 435.0% in the 1st 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 in the last quarter. Finally, Activest Wealth Management boosted its holdings in shares of Applied Materials by 5,325.0% in the 1st quarter. Activest Wealth Management now owns 217 shares of the manufacturing equipment provider's stock worth $31,000 after acquiring an additional 213 shares in the last quarter. 80.56% of the stock is currently owned by institutional investors.

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.