Applied Materials (NASDAQ:AMAT) Stock Price Down 1.6% - Should You Sell?

Key Points

• Applied Materials' stock price decreased by 1.6%, closing at $176.28, with trading volume significantly down to 1.2 million shares from an average of over 7 million.
• Analyst ratings show a consensus of "Moderate Buy"** for the stock, with a mean target price of $204.09, following several adjustments by major firms.
• The company reported earnings of $2.39 per share in its last quarter, exceeding expectations, with revenue increasing 6.8% year-over-year but slightly missing the projected revenue target.

Shares of Applied Materials, Inc. (NASDAQ:AMAT - Get Free Report) dropped 1.6% during mid-day trading on Wednesday . The stock traded as low as $175.50 and last traded at $176.28. Approximately 1,215,916 shares traded hands during mid-day trading, a decline of 83% from the average daily volume of 7,220,893 shares. The stock had previously closed at $179.15.

Analyst Ratings Changes

AMAT has been the subject of several analyst reports. Raymond James Financial reissued an "outperform" rating and issued a $200.00 price objective (down previously from $225.00) on shares of Applied Materials in a report on Friday, May 16th. Mizuho boosted their price objective on Applied Materials from $195.00 to $220.00 and gave the stock an "outperform" rating in a research note on Monday, July 14th. Wells Fargo & Company upped their price target on Applied Materials from $200.00 to $215.00 and gave the company an "overweight" rating in a research report on Tuesday, July 8th. Barclays upped their price objective on Applied Materials from $160.00 to $170.00 and gave the company an "equal weight" rating in a report on Monday, July 28th. Finally, TD Cowen decreased their price objective on Applied Materials from $225.00 to $220.00 and set a "buy" rating on the stock in a report on Friday, May 16th. Nine investment analysts have rated the stock with a hold rating and seventeen have given a buy rating to the company's stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $204.09.

Applied Materials Trading Down 0.2%

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 firm has a market cap of $143.47 billion, a price-to-earnings ratio of 21.77, a price-to-earnings-growth ratio of 2.04 and a beta of 1.70. The business's fifty day moving average is $180.76 and its two-hundred day moving average is $166.80.

Applied Materials (NASDAQ:AMAT - Get Free Report) last issued its quarterly earnings data on Thursday, May 15th. The manufacturing equipment provider reported $2.39 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.31 by $0.08. Applied Materials had a net margin of 24.06% and a return on equity of 40.15%. The company had revenue of $7.10 billion during the quarter, compared to the consensus estimate of $7.12 billion. During the same quarter in the prior year, the firm earned $2.09 earnings per share. The firm's revenue was up 6.8% compared to the same quarter last year. Equities analysts anticipate that Applied Materials, Inc. will post 9.38 earnings per share for the current fiscal year.

Applied Materials Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, September 11th. Investors of record on Thursday, August 21st will be given a dividend of $0.46 per share. This represents a $1.84 dividend on an annualized basis and a yield of 1.0%. The ex-dividend date of this dividend is Thursday, August 21st. Applied Materials's dividend payout ratio (DPR) is currently 22.38%.

Insider Buying and Selling

In other news, CAO Adam Sanders sold 562 shares of the firm's stock in a transaction that occurred on Tuesday, June 24th. The shares were sold at an average price of $178.60, for a total value of $100,373.20. Following the sale, the chief accounting officer directly 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 document filed with the SEC, which is accessible through this hyperlink. 0.24% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the company. Maseco LLP purchased a new stake in shares of Applied Materials in the second quarter worth about $30,000. Runnymede Capital Advisors Inc. raised its position in shares of Applied Materials by 972.2% in the 1st quarter. Runnymede Capital Advisors Inc. now owns 193 shares of the manufacturing equipment provider's stock worth $28,000 after purchasing an additional 175 shares during the last quarter. Smallwood Wealth Investment Management LLC purchased a new position in Applied Materials in the 1st quarter worth about $29,000. Clal Insurance Enterprises Holdings Ltd raised its position in Applied Materials by 435.0% in the 1st quarter. Clal Insurance Enterprises Holdings Ltd now owns 214 shares of the manufacturing equipment provider's stock worth $31,000 after buying an additional 174 shares during the last quarter. Finally, Activest Wealth Management lifted its stake in shares of Applied Materials by 5,325.0% in the 1st quarter. Activest Wealth Management now owns 217 shares of the manufacturing equipment provider's stock worth $31,000 after purchasing an additional 213 shares during the period. 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.

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