Applied Materials (NASDAQ:AMAT) Shares Up 1.5% - Here's Why

Applied Materials, Inc. (NASDAQ:AMAT - Get Free Report) shares were up 1.5% during mid-day trading on Thursday . The company traded as high as $189.92 and last traded at $189.74. Approximately 1,220,529 shares changed hands during trading, a decline of 83% from the average daily volume of 7,299,437 shares. The stock had previously closed at $187.01.

Analyst Ratings Changes

A number of equities research analysts have weighed in on AMAT shares. Redburn Atlantic downgraded Applied Materials from a "strong-buy" rating to a "hold" rating and lowered their target price for the stock from $225.00 to $200.00 in a report on Monday, July 7th. B. Riley lowered their target price on Applied Materials from $250.00 to $215.00 and set a "buy" rating for the company in a report on Monday, May 12th. JPMorgan Chase & Co. lowered their target price on Applied Materials from $240.00 to $210.00 and set an "overweight" rating for the company in a report on Friday, May 16th. Citigroup lifted their target price on Applied Materials from $190.00 to $220.00 and gave the stock a "buy" rating in a report on Monday, July 7th. Finally, Barclays lowered their target price on Applied Materials from $190.00 to $160.00 and set an "equal weight" rating for the company in a report on Tuesday, April 22nd. Nine equities research analysts have rated the stock with a hold rating and seventeen have issued a buy rating to the company. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $204.74.

Applied Materials Stock Performance

The company has a market cap of $148.82 billion, a P/E ratio of 22.53, a PEG ratio of 2.08 and a beta of 1.69. The firm has a 50 day moving average of $177.19 and a 200-day moving average of $166.54. The company has a quick ratio of 1.76, a current ratio of 2.46 and a debt-to-equity ratio of 0.29.

Applied Materials (NASDAQ:AMAT - Get Free Report) last announced its 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 40.15% and a net margin of 24.06%. The business had revenue of $7.10 billion for the quarter, compared to analysts' expectations of $7.12 billion. During the same quarter last year, the firm earned $2.09 EPS. The business's revenue for the quarter was up 6.8% on a year-over-year basis. As a group, sell-side analysts anticipate that Applied Materials, Inc. will post 9.38 EPS for the current fiscal year.

Applied Materials Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, September 11th. Investors of record on Thursday, August 21st will be paid a $0.46 dividend. 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 0.99%. Applied Materials's dividend payout ratio (DPR) is 22.38%.

Insider Transactions at Applied Materials

In other Applied Materials news, CAO Adam Sanders sold 562 shares of Applied Materials stock in a transaction dated Tuesday, June 24th. The stock was sold at an average price of $178.60, for a total transaction of $100,373.20. Following the completion of the transaction, the chief accounting officer owned 5,300 shares in the company, valued at approximately $946,580. This trade represents a 9.59% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this link. 0.24% of the stock is owned by company insiders.

Hedge Funds Weigh In On Applied Materials

Institutional investors have recently modified their holdings of the stock. OFI Invest Asset Management grew its position in shares of Applied Materials by 34.2% during the 2nd quarter. OFI Invest Asset Management now owns 18,878 shares of the manufacturing equipment provider's stock valued at $3,456,000 after acquiring an additional 4,810 shares during the period. Nationale Nederlanden Powszechne Towarzystwo Emerytalne S.A. grew its position in shares of Applied Materials by 70.9% during the 2nd quarter. Nationale Nederlanden Powszechne Towarzystwo Emerytalne S.A. now owns 174,383 shares of the manufacturing equipment provider's stock valued at $31,924,000 after acquiring an additional 72,374 shares during the period. Vanguard Personalized Indexing Management LLC grew its position in shares of Applied Materials by 31.8% during the 2nd quarter. Vanguard Personalized Indexing Management LLC now owns 145,277 shares of the manufacturing equipment provider's stock valued at $26,601,000 after acquiring an additional 35,012 shares during the period. Hobbs Group Advisors LLC acquired a new stake in shares of Applied Materials during the 2nd quarter valued at about $202,000. Finally, Sovereign Financial Group Inc. acquired a new stake in shares of Applied Materials during the 2nd quarter valued at about $254,000. Hedge funds and other institutional investors 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.