Applied Materials (NASDAQ:AMAT) Trading Up 2.7% - Here's Why

Key Points

• Applied Materials' stock increased by 2.7% to $189.40, despite a significant drop in trading volume compared to its average session.
• Brokerages have downgraded their price targets for Applied Materials, with estimates now ranging from $200 to $225, while maintaining a general "buy" sentiment.
• The company declared a quarterly dividend of $0.46 per share, with a 1.0% yield, highlighting its commitment to returning value to shareholders.

Applied Materials, Inc. (NASDAQ:AMAT - Get Free Report)'s stock price rose 2.7% on Tuesday . The company traded as high as $188.18 and last traded at $189.40. Approximately 987,164 shares changed hands during mid-day trading, a decline of 86% from the average daily volume of 7,193,698 shares. The stock had previously closed at $184.38.

Analyst Ratings Changes

Several analysts have commented on AMAT shares. TD Cowen lowered their target price on shares of Applied Materials from $220.00 to $200.00 and set a "buy" rating for the company in a research note on Friday. Citigroup lowered their price objective on Applied Materials from $220.00 to $205.00 and set a "buy" rating for the company in a research report on Friday. Raymond James Financial reiterated an "outperform" rating and set a $200.00 target price (down from $225.00) on shares of Applied Materials in a research report on Friday, May 16th. UBS Group lowered their price target on Applied Materials from $185.00 to $180.00 and set a "neutral" rating for the company in a report on Friday. Finally, Rothschild & Co Redburn downgraded shares of Applied Materials from a "buy" rating to a "neutral" rating and set a $200.00 price objective for the company. in a research note on Monday, July 7th. One research analyst has rated the stock with a sell rating, eleven have given a hold rating and seventeen have assigned a buy rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $194.84.

Applied Materials Trading Down 14.1%

The business's 50-day simple moving average is $184.18 and its two-hundred day simple moving average is $166.71. The company has a current ratio of 2.46, a quick ratio of 1.76 and a debt-to-equity ratio of 0.29. The company has a market capitalization of $129.81 billion, a PE ratio of 19.28, a PEG ratio of 2.10 and a beta of 1.70.

Applied Materials (NASDAQ:AMAT - Get Free Report) last issued its quarterly earnings data on Thursday, August 14th. The manufacturing equipment provider reported $2.48 earnings per share for the quarter, beating analysts' consensus estimates of $2.36 by $0.12. Applied Materials had a return on equity of 41.31% and a net margin of 23.88%. The firm had revenue of $7.30 billion during the quarter, compared to analyst estimates of $7.21 billion. During the same quarter last year, the firm earned $2.12 EPS. Applied Materials's quarterly revenue was up 7.7% on a year-over-year basis. On average, analysts predict that Applied Materials, Inc. will post 9.38 earnings per share for the current year.

Applied Materials Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, September 11th. Shareholders of record on Thursday, August 21st will be paid a dividend of $0.46 per share. This represents a $1.84 dividend on an annualized basis and a yield of 1.1%. The ex-dividend date is Thursday, August 21st. Applied Materials's dividend payout ratio is 22.38%.

Insider Buying and Selling

In other news, CAO Adam Sanders sold 562 shares of the business's stock in a transaction dated Tuesday, June 24th. The shares were sold at an average price of $178.60, for a total value of $100,373.20. Following the completion of 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 position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 0.24% of the stock is owned by company insiders.

Institutional Trading of Applied Materials

Institutional investors and hedge funds have recently bought and sold shares of the company. Shelton Wealth Management LLC lifted its position in Applied Materials by 1.5% in the second quarter. Shelton Wealth Management LLC now owns 3,398 shares of the manufacturing equipment provider's stock worth $622,000 after purchasing an additional 51 shares during the period. Octavia Wealth Advisors LLC lifted 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 acquiring an additional 51 shares during the period. Narus Financial Partners LLC boosted its position 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 valued at $262,000 after acquiring an additional 52 shares in the last quarter. AdvisorNet Financial Inc increased its stake in Applied Materials by 2.7% in the second quarter. AdvisorNet Financial Inc now owns 1,958 shares of the manufacturing equipment provider's stock valued at $358,000 after acquiring an additional 52 shares during the period. Finally, Encompass Wealth Advisors LLC lifted its stake in Applied Materials by 3.4% during the second quarter. Encompass Wealth Advisors LLC now owns 1,601 shares of the manufacturing equipment provider's stock worth $293,000 after purchasing an additional 53 shares during the period. 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.