Applied Materials (NASDAQ:AMAT) Trading 2.9% Higher - Still a Buy?

Applied Materials, Inc. (NASDAQ:AMAT - Get Free Report) shares shot up 2.9% during mid-day trading on Monday . The company traded as high as $171.41 and last traded at $171.59. 1,196,201 shares traded hands during mid-day trading, a decline of 83% from the average session volume of 6,944,618 shares. The stock had previously closed at $166.74.

Analyst Upgrades and Downgrades

AMAT has been the topic of a number of recent research reports. Barclays cut their price target on Applied Materials from $190.00 to $160.00 and set an "equal weight" rating on the stock in a research note on Tuesday, April 22nd. Wall Street Zen upgraded shares of Applied Materials from a "hold" rating to a "buy" rating in a research report on Friday, June 6th. Edward Jones upgraded shares of Applied Materials from a "hold" rating to a "buy" rating in a research report on Wednesday, March 12th. Morgan Stanley upgraded shares of Applied Materials from an "underweight" rating to an "equal weight" rating and cut their price target for the stock from $162.00 to $158.00 in a report on Friday, June 6th. Finally, Jefferies Financial Group upgraded Applied Materials from a "hold" rating to a "buy" rating and set a $195.00 price objective for the company in a report on Friday, March 28th. Six equities research 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.com, Applied Materials presently has a consensus rating of "Moderate Buy" and an average target price of $199.29.

Applied Materials Stock Down 0.6%

The company has a market cap of $138.66 billion, a price-to-earnings ratio of 22.59, a P/E/G ratio of 1.81 and a beta of 1.67. The stock's 50-day moving average is $153.43 and its 200-day moving average is $163.15. The company has a current ratio of 2.67, a quick ratio of 1.96 and a debt-to-equity ratio of 0.29.

Applied Materials (NASDAQ:AMAT - Get Free Report) last released its quarterly earnings data 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. Applied Materials had a net margin of 22.95% and a return on equity of 39.50%. The company had revenue of $7.10 billion for the quarter, compared to analysts' expectations of $7.12 billion. During the same quarter in the prior year, the firm earned $2.09 EPS. The business's revenue was up 6.8% on a year-over-year basis. On average, analysts anticipate that Applied Materials, Inc. will post 9.38 earnings per share for the current fiscal year.

Applied Materials Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, September 11th. Shareholders of record on Thursday, August 21st will be issued a dividend of $0.46 per share. The ex-dividend date is Thursday, August 21st. This represents a $1.84 annualized dividend and a yield of 1.06%. Applied Materials's payout ratio is 22.38%.

Applied Materials declared that its Board of Directors has initiated a share repurchase plan on Monday, March 10th that allows the company to buyback $10.00 billion in shares. This buyback authorization allows the manufacturing equipment provider to repurchase up to 8.2% of its stock through open market purchases. Stock buyback plans are usually a sign that the company's board of directors believes its shares are undervalued.

Insider Activity

In other Applied Materials news, CAO Adam Sanders sold 450 shares of Applied Materials stock in a transaction dated Tuesday, April 1st. The stock was sold at an average price of $144.83, for a total transaction of $65,173.50. Following the completion of the transaction, the chief accounting officer now owns 6,077 shares in the company, valued at approximately $880,131.91. The trade was a 6.89% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Gary E. Dickerson bought 50,000 shares of the business's stock in a transaction that occurred on Thursday, April 3rd. The shares were bought at an average cost of $137.30 per share, for a total transaction of $6,865,000.00. Following the transaction, the chief executive officer now owns 1,716,058 shares of the company's stock, valued at $235,614,763.40. The trade was a 3.00% increase in their ownership of the stock. The disclosure for this purchase can be found here. Corporate insiders own 0.24% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. LaFleur & Godfrey LLC increased its position in shares of Applied Materials by 17.2% during the 4th quarter. LaFleur & Godfrey LLC now owns 17,246 shares of the manufacturing equipment provider's stock valued at $2,805,000 after purchasing an additional 2,536 shares during the last quarter. Eagle Capital Management LLC grew its position in Applied Materials by 1.8% during the fourth quarter. Eagle Capital Management LLC now owns 16,004 shares of the manufacturing equipment provider's stock valued at $2,603,000 after buying an additional 290 shares during the period. Brighton Jones LLC increased its holdings in Applied Materials by 28.0% during the fourth quarter. Brighton Jones LLC now owns 12,674 shares of the manufacturing equipment provider's stock worth $2,061,000 after buying an additional 2,771 shares during the last quarter. Union Bancaire Privee UBP SA bought a new stake in Applied Materials in the fourth quarter worth about $15,303,000. Finally, Empowered Funds LLC raised its position in Applied Materials by 20.6% in the fourth quarter. Empowered Funds LLC now owns 49,334 shares of the manufacturing equipment provider's stock worth $8,023,000 after acquiring an additional 8,434 shares during the period. 80.56% of the stock is currently owned by hedge funds and other 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.