Applied Materials (NASDAQ:AMAT) Shares Gap Down - Should You Sell?

Applied Materials, Inc. (NASDAQ:AMAT - Get Free Report) gapped down prior to trading on Wednesday . The stock had previously closed at $199.29, but opened at $194.00. Applied Materials shares last traded at $191.05, with a volume of 2,778,197 shares traded.

Analyst Upgrades and Downgrades

AMAT has been the subject of a number of analyst reports. Redburn Atlantic downgraded shares of Applied Materials from a "strong-buy" rating to a "hold" rating and reduced their price objective for the stock from $225.00 to $200.00 in a report on Monday, July 7th. Raymond James Financial restated an "outperform" rating and issued a $200.00 price objective (down previously from $225.00) on shares of Applied Materials in a research report on Friday, May 16th. Jefferies Financial Group upgraded shares of Applied Materials from a "hold" rating to a "buy" rating and set a $195.00 price objective for the company in a research report on Friday, March 28th. Mizuho lifted their price target on shares of Applied Materials from $195.00 to $220.00 and gave the stock an "outperform" rating in a research report on Monday. Finally, Citigroup boosted their price objective on shares of Applied Materials from $190.00 to $220.00 and gave the company a "buy" rating in a report on Monday, July 7th. Nine research analysts have rated the stock with a hold rating and seventeen have issued a buy rating to the company. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $204.74.

Applied Materials Stock Performance

The company has a quick ratio of 1.76, a current ratio of 2.46 and a debt-to-equity ratio of 0.29. The company has a market cap of $156.34 billion, a P/E ratio of 23.70, a P/E/G ratio of 2.22 and a beta of 1.69. The business has a fifty day moving average of $174.46 and a 200 day moving average of $165.59.

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 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 for the quarter, compared to analysts' expectations of $7.12 billion. During the same period in the prior year, the firm earned $2.09 earnings per share. The firm's revenue for the quarter was up 6.8% on a year-over-year basis. On average, equities analysts predict that Applied Materials, Inc. will post 9.38 EPS for the current year.

Applied Materials Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, September 11th. Shareholders of record on Thursday, August 21st will be issued a $0.46 dividend. This represents a $1.84 dividend on an annualized basis and a yield of 0.94%. The ex-dividend date is Thursday, August 21st. Applied Materials's dividend payout ratio is 22.38%.

Insider Activity at Applied Materials

In related 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. This trade represents a 9.59% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 0.24% of the stock is owned by company insiders.

Institutional Investors Weigh In On Applied Materials

A number of institutional investors and hedge funds have recently modified their holdings of the business. Shelton Wealth Management LLC increased its holdings in shares of Applied Materials by 1.5% during the 2nd quarter. Shelton Wealth Management LLC now owns 3,398 shares of the manufacturing equipment provider's stock worth $622,000 after buying an additional 51 shares during the last quarter. Octavia Wealth Advisors LLC increased its holdings in shares of Applied Materials by 0.8% during the 2nd quarter. Octavia Wealth Advisors LLC now owns 6,200 shares of the manufacturing equipment provider's stock worth $1,135,000 after buying an additional 51 shares during the last quarter. Narus Financial Partners LLC increased its holdings in shares of Applied Materials by 3.8% during the 2nd quarter. Narus Financial Partners LLC now owns 1,433 shares of the manufacturing equipment provider's stock worth $262,000 after buying an additional 52 shares during the last quarter. AdvisorNet Financial Inc increased its holdings in shares of Applied Materials by 2.7% during the 2nd quarter. AdvisorNet Financial Inc now owns 1,958 shares of the manufacturing equipment provider's stock worth $358,000 after buying an additional 52 shares during the last quarter. Finally, Encompass Wealth Advisors LLC increased its holdings in shares of Applied Materials by 3.4% during the 2nd quarter. Encompass Wealth Advisors LLC now owns 1,601 shares of the manufacturing equipment provider's stock worth $293,000 after buying an additional 53 shares during the last quarter. 80.56% of the stock is owned by institutional investors.

About Applied Materials

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.