Applied Materials (NASDAQ:AMAT) Stock Price Down 3.6% - Here's Why

Applied Materials, Inc. (NASDAQ:AMAT - Get Free Report)'s stock price fell 3.6% during trading on Wednesday . The stock traded as low as $189.75 and last traded at $192.03. 3,618,296 shares were traded during mid-day trading, a decline of 49% from the average session volume of 7,113,936 shares. The stock had previously closed at $199.29.

Analyst Upgrades and Downgrades

Several brokerages have issued reports on AMAT. JPMorgan Chase & Co. cut their price objective on Applied Materials from $240.00 to $210.00 and set an "overweight" rating on the stock in a research note on Friday, May 16th. Citigroup upped their price objective on Applied Materials from $190.00 to $220.00 and gave the company a "buy" rating in a research note on Monday, July 7th. Bank of America lowered their target price on Applied Materials from $205.00 to $190.00 and set a "buy" rating for the company in a report on Wednesday, April 16th. Morgan Stanley increased their price target on Applied Materials from $158.00 to $169.00 and gave the stock an "equal weight" rating in a research report on Tuesday, July 1st. Finally, Redburn Atlantic cut Applied Materials from a "strong-buy" rating to a "hold" rating and dropped their price target for the stock from $225.00 to $200.00 in a research report on Monday, July 7th. Nine investment analysts have rated the stock with a hold rating and seventeen have issued a buy rating to the company. Based on data from MarketBeat, Applied Materials currently has an average rating of "Moderate Buy" and a consensus price target of $204.74.

Applied Materials Price Performance

The stock has a fifty day moving average price of $175.89 and a 200-day moving average price of $165.98. The company has a market cap of $152.83 billion, a PE ratio of 23.17, a price-to-earnings-growth ratio of 2.12 and a beta of 1.69. The company has a debt-to-equity ratio of 0.29, a current ratio of 2.46 and a quick ratio of 1.76.

Applied Materials (NASDAQ:AMAT - Get Free Report) last posted its earnings results on Thursday, May 15th. The manufacturing equipment provider reported $2.39 earnings per share 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 company had revenue of $7.10 billion for the quarter, compared to analyst estimates of $7.12 billion. During the same period last year, the company earned $2.09 earnings per share. The business's revenue was up 6.8% compared to the same quarter last year. On average, equities analysts expect that Applied Materials, Inc. will post 9.38 earnings per share for the current year.

Applied Materials Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, September 11th. Stockholders of record on Thursday, August 21st will be given a $0.46 dividend. This represents a $1.84 annualized dividend and a dividend yield of 0.97%. The ex-dividend date of this dividend is Thursday, August 21st. Applied Materials's dividend payout ratio is currently 22.38%.

Insiders Place Their Bets

In related 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 sale, the chief accounting officer directly owned 5,300 shares of the company's stock, valued at $946,580. This trade represents a 9.59% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. 0.24% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently modified their holdings of the company. Shelton Wealth Management LLC boosted its holdings in Applied Materials by 1.5% during 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 last quarter. Octavia Wealth Advisors LLC boosted its holdings in Applied Materials by 0.8% during the second quarter. Octavia Wealth Advisors LLC now owns 6,200 shares of the manufacturing equipment provider's stock worth $1,135,000 after purchasing an additional 51 shares during the last quarter. Narus Financial Partners LLC boosted its holdings in Applied Materials by 3.8% during the second quarter. Narus Financial Partners LLC now owns 1,433 shares of the manufacturing equipment provider's stock worth $262,000 after purchasing an additional 52 shares during the last quarter. AdvisorNet Financial Inc boosted its holdings in Applied Materials by 2.7% during the second quarter. AdvisorNet Financial Inc now owns 1,958 shares of the manufacturing equipment provider's stock worth $358,000 after purchasing an additional 52 shares during the last quarter. Finally, Encompass Wealth Advisors LLC boosted its holdings 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 last quarter. 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.