Applied Materials (NASDAQ:AMAT) Shares Gap Down - Here's What Happened

Key Points

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Applied Materials, Inc. (NASDAQ:AMAT - Get Free Report) shares gapped down before the market opened on Thursday . The stock had previously closed at $189.39, but opened at $177.88. Applied Materials shares last traded at $180.28, with a volume of 2,682,848 shares changing hands.

Analyst Ratings Changes

AMAT has been the subject of several research reports. Citigroup increased their price objective on Applied Materials from $190.00 to $220.00 and gave the company a "buy" rating in a report on Monday, July 7th. Cantor Fitzgerald set a $220.00 price objective on Applied Materials and gave the company an "overweight" rating in a research note on Tuesday, June 24th. Redburn Atlantic downgraded Applied Materials from a "strong-buy" rating to a "hold" rating and lowered their price target for the company from $225.00 to $200.00 in a research report on Monday, July 7th. Barclays set a $170.00 price target on Applied Materials and gave the company an "equal weight" rating in a research report on Monday. Finally, Needham & Company LLC reiterated a "buy" rating and issued a $195.00 price objective on shares of Applied Materials in a report on Friday, May 16th. Nine analysts have rated the stock with a hold rating and seventeen have assigned a buy rating to the stock. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $205.17.

Applied Materials Price Performance

The stock has a market cap of $143.73 billion, a PE ratio of 21.75, a PEG 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 of $179.46 and a 200-day moving average of $166.95.

Applied Materials (NASDAQ:AMAT - Get Free Report) last posted its earnings results on Thursday, May 15th. The manufacturing equipment provider reported $2.39 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.31 by $0.08. Applied Materials had a return on equity of 40.15% and a net margin of 24.06%. The company had revenue of $7.10 billion during the quarter, compared to analysts' expectations of $7.12 billion. During the same quarter last year, the firm earned $2.09 earnings per share. The firm's quarterly revenue was up 6.8% compared to the same quarter last year. Research analysts predict that Applied Materials, Inc. will post 9.38 EPS for the current year.

Applied Materials Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, September 11th. Stockholders of record on Thursday, August 21st will be paid a dividend of $0.46 per share. The ex-dividend date is Thursday, August 21st. This represents a $1.84 annualized dividend and a dividend yield of 1.0%. Applied Materials's dividend payout ratio (DPR) is currently 22.38%.

Insider Activity at Applied Materials

In other news, CAO Adam Sanders sold 562 shares of Applied Materials 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 approximately $946,580. The trade was a 9.59% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Insiders own 0.24% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in the stock. Runnymede Capital Advisors Inc. raised its holdings in Applied Materials by 972.2% in the first quarter. Runnymede Capital Advisors Inc. now owns 193 shares of the manufacturing equipment provider's stock worth $28,000 after purchasing an additional 175 shares during the period. Smallwood Wealth Investment Management LLC bought a new stake in shares of Applied Materials during the 1st quarter valued at approximately $29,000. Maseco LLP bought a new stake in shares of Applied Materials in the 2nd quarter valued at $30,000. Clal Insurance Enterprises Holdings Ltd lifted its position in shares of Applied Materials by 435.0% during the 1st quarter. Clal Insurance Enterprises Holdings Ltd now owns 214 shares of the manufacturing equipment provider's stock valued at $31,000 after acquiring an additional 174 shares during the period. Finally, Activest Wealth Management grew its stake 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. 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.