Applied Materials (NASDAQ:AMAT) Stock Price Up 1.3% - Here's What Happened

Key Points

• Applied Materials (NASDAQ:AMAT) stock increased by 1.3% to close at $158.29 with a trading volume significantly lower than its average.
• Multiple analysts adjusted their price targets for AMAT, with Wolfe Research setting a new target at $200 while Deutsche Bank lowered theirs to $170, reflecting a mixed outlook for the company.
• The company announced a quarterly dividend of $0.46, representing an annual yield of 1.2%, and reported an earnings beat with $2.48 earnings per share for the last quarter.

Applied Materials, Inc. (NASDAQ:AMAT - Get Free Report) shares were up 1.3% during trading on Thursday . The company traded as high as $158.10 and last traded at $158.29. Approximately 949,575 shares were traded during mid-day trading, a decline of 87% from the average daily volume of 7,367,276 shares. The stock had previously closed at $156.25.

Analyst Upgrades and Downgrades

A number of research analysts recently commented on AMAT shares. Wolfe Research reduced their target price on Applied Materials from $230.00 to $200.00 and set an "outperform" rating on the stock in a research note on Friday, August 15th. Deutsche Bank Aktiengesellschaft reduced their price target on shares of Applied Materials from $200.00 to $170.00 and set a "hold" rating for the company in a research report on Friday, August 15th. Mizuho reduced their price target on shares of Applied Materials from $220.00 to $200.00 and set an "outperform" rating for the company in a research report on Friday, August 15th. Redburn Atlantic cut shares of Applied Materials from a "strong-buy" rating to a "hold" rating and dropped their target price for the stock from $225.00 to $200.00 in a report on Monday, July 7th. Finally, Stifel Nicolaus dropped their target price on shares of Applied Materials from $195.00 to $180.00 and set a "buy" rating on the stock in a report on Friday, August 15th. Seventeen research analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $193.88.

Applied Materials Stock Performance

The firm's 50 day moving average is $180.94 and its 200 day moving average is $165.06. The company has a debt-to-equity ratio of 0.28, a quick ratio of 1.76 and a current ratio of 2.50. The stock has a market cap of $126.06 billion, a P/E ratio of 18.86, a price-to-earnings-growth ratio of 2.29 and a beta of 1.77.

Applied Materials (NASDAQ:AMAT - Get Free Report) last posted its earnings results on Thursday, August 14th. The manufacturing equipment provider reported $2.48 EPS for the quarter, beating analysts' consensus estimates of $2.36 by $0.12. Applied Materials had a net margin of 23.88% and a return on equity of 40.96%. The company had revenue of $7.30 billion during the quarter, compared to analysts' expectations of $7.21 billion. During the same quarter in the prior year, the company posted $2.12 earnings per share. Applied Materials's revenue for the quarter was up 7.7% compared to the same quarter last year. Applied Materials has set its Q4 2025 guidance at 1.910-2.310 EPS. Analysts anticipate that Applied Materials, Inc. will post 9.38 EPS for the current year.

Applied Materials Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, September 11th. Stockholders of record on Thursday, August 21st will be paid a $0.46 dividend. The ex-dividend date is Thursday, August 21st. This represents a $1.84 dividend on an annualized basis and a dividend yield of 1.2%. Applied Materials's dividend payout ratio is presently 21.93%.

Insider Buying and Selling at Applied Materials

In other news, CAO Adam Sanders sold 562 shares of the stock in a transaction 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 owned 5,300 shares in the company, valued at $946,580. This represents a 9.59% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 0.24% of the stock is owned by insiders.

Institutional Trading of Applied Materials

A number of hedge funds and other institutional investors have recently made changes to their positions in AMAT. Maseco LLP purchased a new stake in Applied Materials during the second quarter worth $30,000. Financial Gravity Companies Inc. purchased a new position in shares of Applied Materials in the second quarter worth about $31,000. Howard Hughes Medical Institute purchased a new position in shares of Applied Materials in the second quarter worth about $32,000. Total Investment Management Inc. purchased a new position in shares of Applied Materials in the second quarter worth about $33,000. Finally, Runnymede Capital Advisors Inc. increased its position in Applied Materials by 972.2% during the first 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. Institutional investors and hedge funds own 80.56% of the company's stock.

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.

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