Applied Materials (NASDAQ:AMAT) Shares Up 2.9% - Here's Why

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

Wall Street Analysts Forecast Growth

Several research firms have commented on AMAT. Barclays dropped their target price on shares of Applied Materials from $190.00 to $160.00 and set an "equal weight" rating on the stock in a research report on Tuesday, April 22nd. Jefferies Financial Group upgraded shares of Applied Materials from a "hold" rating to a "buy" rating and set a $195.00 price target for the company in a research note on Friday, March 28th. Wells Fargo & Company reissued a "mixed" rating on shares of Applied Materials in a report on Friday, May 16th. JPMorgan Chase & Co. lowered their target price on shares of Applied Materials from $240.00 to $210.00 and set an "overweight" rating on the stock in a report on Friday, May 16th. Finally, Stifel Nicolaus decreased their price target on shares of Applied Materials from $235.00 to $195.00 and set a "buy" rating on the stock in a report on Tuesday, April 15th. Six research analysts have rated the stock with a hold rating and seventeen have issued a buy rating to the company's stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $199.29.

Applied Materials Price Performance

The company has a quick ratio of 1.96, a current ratio of 2.67 and a debt-to-equity ratio of 0.29. The stock has a 50 day moving average price of $152.23 and a two-hundred day moving average price of $163.11. The firm has a market cap of $136.99 billion, a PE ratio of 22.32, a price-to-earnings-growth ratio of 1.81 and a beta of 1.67.

Applied Materials (NASDAQ:AMAT - Get Free Report) last posted its quarterly earnings results on Thursday, May 15th. The manufacturing equipment provider reported $2.39 EPS for the quarter, topping the consensus estimate of $2.31 by $0.08. Applied Materials had a return on equity of 39.50% and a net margin of 22.95%. The business had revenue of $7.10 billion for the quarter, compared to analyst estimates of $7.12 billion. During the same quarter in the previous year, the firm earned $2.09 EPS. The company's quarterly revenue was up 6.8% compared to the same quarter last year. As a group, equities analysts expect that Applied Materials, Inc. will post 9.38 earnings per share for the current year.

Applied Materials declared that its board has authorized a stock repurchase plan on Monday, March 10th that permits the company to repurchase $10.00 billion in shares. This repurchase authorization permits the manufacturing equipment provider to repurchase up to 8.2% of its shares through open market purchases. Shares repurchase plans are generally an indication that the company's board of directors believes its stock is undervalued.

Insider Buying and Selling at Applied Materials

In other Applied Materials news, CAO Adam Sanders sold 450 shares of the business's stock in a transaction that occurred on Tuesday, April 1st. The stock was sold at an average price of $144.83, for a total value of $65,173.50. Following the completion of the sale, 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 ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Gary E. Dickerson acquired 50,000 shares of Applied Materials stock in a transaction on Thursday, April 3rd. The stock was purchased at an average price of $137.30 per share, with a total value of $6,865,000.00. Following the purchase, 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 position. The disclosure for this purchase can be found here. 0.24% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the company. Belpointe Asset Management LLC boosted its holdings in Applied Materials by 1.7% in the 4th quarter. Belpointe Asset Management LLC now owns 3,734 shares of the manufacturing equipment provider's stock valued at $607,000 after purchasing an additional 62 shares during the period. Valmark Advisers Inc. lifted its holdings in shares of Applied Materials by 3.5% during the 4th quarter. Valmark Advisers Inc. now owns 1,862 shares of the manufacturing equipment provider's stock worth $303,000 after acquiring an additional 63 shares during the last quarter. Hills Bank & Trust Co lifted its holdings in shares of Applied Materials by 6.6% during the 4th quarter. Hills Bank & Trust Co now owns 1,061 shares of the manufacturing equipment provider's stock worth $173,000 after acquiring an additional 66 shares during the last quarter. Old Port Advisors lifted its holdings in shares of Applied Materials by 2.5% during the 1st quarter. Old Port Advisors now owns 2,730 shares of the manufacturing equipment provider's stock worth $396,000 after acquiring an additional 66 shares during the last quarter. Finally, Kovack Advisors Inc. lifted its holdings in shares of Applied Materials by 2.3% during the 4th quarter. Kovack Advisors Inc. now owns 3,062 shares of the manufacturing equipment provider's stock worth $498,000 after acquiring an additional 68 shares during 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.

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