Applied Materials (NASDAQ:AMAT) Stock Price Down 5% - Should You Sell?

Key Points

• Applied Materials' shares fell by 5% during mid-day trading, reaching as low as $174.51, amid a 51% decrease in trading volume compared to its average.
• Multiple analysts downgraded the stock, with Redburn Atlantic lowering its rating from "strong-buy" to "hold" and adjusting their price target from $225 to $200.
• Despite recent challenges, Applied Materials reported a 6.8% year-over-year revenue increase and exceeded earnings expectations by posting $2.39 EPS against a consensus estimate of $2.31.

Shares of Applied Materials, Inc. (NASDAQ:AMAT - Get Free Report) traded down 5% on Thursday . The stock traded as low as $174.51 and last traded at $179.84. 3,558,035 shares traded hands during trading, a decline of 51% from the average session volume of 7,235,542 shares. The stock had previously closed at $189.39.

Wall Street Analyst Weigh In

Several research analysts have recently weighed in on the company. Citigroup upped their price objective on Applied Materials from $190.00 to $220.00 and gave the stock a "buy" rating in a research report on Monday, July 7th. Needham & Company LLC reiterated a "buy" rating and set a $195.00 target price on shares of Applied Materials in a report on Friday, May 16th. Morgan Stanley upped their target price on Applied Materials from $158.00 to $169.00 and gave the stock an "equal weight" rating in a report on Tuesday, July 1st. Raymond James Financial reiterated an "outperform" rating and set a $200.00 target price (down previously from $225.00) on shares of Applied Materials in a report on Friday, May 16th. Finally, Bank of America dropped 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. Nine investment analysts have rated the stock with a hold rating and seventeen have issued a buy rating to the company's stock. According to data from MarketBeat, Applied Materials presently has a consensus rating of "Moderate Buy" and an average target price of $205.17.

Applied Materials Stock Up 0.2%

The company has a market cap of $144.78 billion, a price-to-earnings ratio of 21.99, a P/E/G ratio of 2.11 and a beta of 1.69. 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 firm has a 50-day moving average price of $179.46 and a 200 day moving average price of $166.95.

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 business had revenue of $7.10 billion for the quarter, compared to the consensus estimate of $7.12 billion. Applied Materials had a return on equity of 40.15% and a net margin of 24.06%. The firm's quarterly revenue was up 6.8% compared to the same quarter last year. During the same quarter in the prior year, the business posted $2.09 earnings per share. Sell-side analysts predict that Applied Materials, Inc. will post 9.38 EPS for the current year.

Applied Materials Dividend Announcement

The business 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 dividend of $0.46 per share. The ex-dividend date of this dividend is Thursday, August 21st. This represents a $1.84 dividend on an annualized basis and a yield of 1.0%. Applied Materials's dividend payout ratio is currently 22.38%.

Insider Transactions at Applied Materials

In related news, CAO Adam Sanders sold 562 shares of the stock in a transaction that occurred on Tuesday, June 24th. The stock was sold at an average price of $178.60, for a total transaction of $100,373.20. Following the sale, the chief accounting officer owned 5,300 shares of the company's stock, valued at $946,580. This represents a 9.59% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. 0.24% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Applied Materials

A number of large investors have recently modified their holdings of the business. Shelton Wealth Management LLC boosted its holdings 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 valued at $622,000 after purchasing an additional 51 shares in the last quarter. Octavia Wealth Advisors LLC boosted its holdings in shares of Applied Materials by 0.8% in the 2nd quarter. Octavia Wealth Advisors LLC now owns 6,200 shares of the manufacturing equipment provider's stock valued at $1,135,000 after purchasing an additional 51 shares in the last quarter. Narus Financial Partners LLC boosted its holdings in shares of Applied Materials by 3.8% in the 2nd quarter. Narus Financial Partners LLC now owns 1,433 shares of the manufacturing equipment provider's stock valued at $262,000 after purchasing an additional 52 shares in the last quarter. AdvisorNet Financial Inc boosted its holdings in shares of Applied Materials by 2.7% in the 2nd quarter. AdvisorNet Financial Inc now owns 1,958 shares of the manufacturing equipment provider's stock valued at $358,000 after purchasing an additional 52 shares in the last quarter. Finally, Encompass Wealth Advisors LLC boosted its holdings in shares of Applied Materials by 3.4% in the 2nd quarter. Encompass Wealth Advisors LLC now owns 1,601 shares of the manufacturing equipment provider's stock valued at $293,000 after purchasing an additional 53 shares in the last quarter. Institutional investors and hedge funds 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.