Applied Materials (NASDAQ:AMAT) Rating Increased to Equal Weight at Morgan Stanley

Applied Materials (NASDAQ:AMAT - Get Free Report) was upgraded by Morgan Stanley from an "underweight" rating to an "equal weight" rating in a research report issued on Friday,Finviz reports.

Several other analysts have also commented on the stock. JPMorgan Chase & Co. lowered their price objective on shares of Applied Materials from $240.00 to $210.00 and set an "overweight" rating for the company in a report on Friday, May 16th. Edward Jones raised shares of Applied Materials from a "hold" rating to a "buy" rating in a report on Wednesday, March 12th. Needham & Company LLC reissued a "buy" rating and issued a $195.00 price objective on shares of Applied Materials in a research note on Friday, May 16th. Citigroup boosted their target price on Applied Materials from $170.00 to $190.00 and gave the stock a "buy" rating in a research note on Friday, May 16th. Finally, Cantor Fitzgerald decreased their price objective on Applied Materials from $220.00 to $200.00 and set an "overweight" rating for the company in a report on Monday, May 12th. Seven investment analysts have rated the stock with a hold rating and sixteen have assigned a buy rating to the company's stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $199.48.

Applied Materials Price Performance

AMAT opened at $164.19 on Friday. Applied Materials has a 52 week low of $123.74 and a 52 week high of $255.89. The firm has a market capitalization of $131.76 billion, a PE ratio of 21.46, a P/E/G ratio of 1.81 and a beta of 1.71. The company has a debt-to-equity ratio of 0.29, a quick ratio of 1.96 and a current ratio of 2.67. The company has a fifty day moving average price of $151.80 and a two-hundred day moving average price of $163.26.

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, beating the consensus estimate of $2.31 by $0.08. Applied Materials had a return on equity of 39.50% and a net margin of 22.95%. The business had revenue of $7.10 billion during the quarter, compared to analysts' expectations of $7.12 billion. During the same period in the previous year, the company posted $2.09 earnings per share. The firm's revenue for the quarter was up 6.8% compared to the same quarter last year. As a group, analysts anticipate that Applied Materials will post 9.38 earnings per share for the current year.

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

Insiders Place Their Bets

In other Applied Materials news, CEO Gary E. Dickerson bought 50,000 shares of the company's stock in a transaction on Thursday, April 3rd. The shares were bought at an average price of $137.30 per share, for a total transaction of $6,865,000.00. Following 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 transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CAO Adam Sanders sold 450 shares of the stock in a transaction dated Tuesday, April 1st. The stock was sold at an average price of $144.83, for a total transaction of $65,173.50. Following the transaction, the chief accounting officer now owns 6,077 shares in the company, valued at approximately $880,131.91. The trade was a 6.89% decrease in their ownership of the stock. The disclosure for this sale can be found here. 0.24% of the stock is owned by insiders.

Institutional Trading of Applied Materials

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Jacobi Capital Management LLC boosted its position in shares of Applied Materials by 51.2% in the 4th quarter. Jacobi Capital Management LLC now owns 18,785 shares of the manufacturing equipment provider's stock valued at $3,055,000 after purchasing an additional 6,364 shares during the period. Skye Global Management LP purchased a new stake in shares of Applied Materials in the fourth quarter valued at $45,862,000. Cable Hill Partners LLC grew its holdings in shares of Applied Materials by 10.2% during the fourth quarter. Cable Hill Partners LLC now owns 3,485 shares of the manufacturing equipment provider's stock valued at $567,000 after buying an additional 322 shares in the last quarter. Value Partners Investments Inc. raised its position in Applied Materials by 8.7% during the fourth quarter. Value Partners Investments Inc. now owns 9,896 shares of the manufacturing equipment provider's stock valued at $1,608,000 after buying an additional 793 shares during the period. Finally, Townsquare Capital LLC increased its holdings in shares of Applied Materials by 15.6% in the 4th quarter. Townsquare Capital LLC now owns 71,577 shares of the manufacturing equipment provider's stock valued at $11,640,000 after purchasing an additional 9,672 shares during the period. 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.

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