Applied Materials (NASDAQ:AMAT) Trading 1.6% Higher - Still a Buy?

Shares of Applied Materials, Inc. (NASDAQ:AMAT - Get Free Report) rose 1.6% during trading on Thursday . The company traded as high as $199.14 and last traded at $198.49. Approximately 1,607,870 shares traded hands during mid-day trading, a decline of 77% from the average daily volume of 7,088,952 shares. The stock had previously closed at $195.39.

Wall Street Analyst Weigh In

AMAT has been the topic of several recent analyst reports. Mizuho reduced their price objective on shares of Applied Materials from $205.00 to $195.00 and set an "outperform" rating on the stock in a research note on Friday, May 16th. Barclays reduced their price target 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. The Goldman Sachs Group initiated coverage on shares of Applied Materials in a research report on Thursday. They issued a "buy" rating and a $225.00 price objective for the company. Redburn Atlantic lowered Applied Materials from a "strong-buy" rating to a "hold" rating and reduced their target price for the stock from $225.00 to $200.00 in a report on Monday. Finally, Needham & Company LLC reaffirmed a "buy" rating and set a $195.00 price target on shares of Applied Materials in a research report on Friday, May 16th. Nine research analysts have rated the stock with a hold rating and seventeen have assigned a buy rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average target price of $203.65.

Applied Materials Price Performance

The firm has a market cap of $158.84 billion, a P/E ratio of 24.08, a PEG ratio of 2.18 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. The company's 50-day moving average is $171.06 and its two-hundred day moving average is $164.77.

Applied Materials (NASDAQ:AMAT - Get Free Report) last issued its quarterly earnings results on Thursday, May 15th. The manufacturing equipment provider reported $2.39 earnings per share for the quarter, topping analysts' consensus estimates 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 posted $2.09 EPS. The firm's quarterly revenue was up 6.8% on a year-over-year basis. Sell-side analysts anticipate that Applied Materials, Inc. will post 9.38 EPS for the current fiscal year.

Applied Materials Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, September 11th. Investors of record on Thursday, August 21st will be issued a dividend of $0.46 per share. This represents a $1.84 annualized dividend and a dividend yield of 0.93%. The ex-dividend date is Thursday, August 21st. Applied Materials's dividend payout ratio (DPR) is presently 22.38%.

Insider Transactions at Applied Materials

In other Applied Materials news, CAO Adam Sanders sold 562 shares of the business's stock in a transaction on Tuesday, June 24th. The shares were sold at an average price of $178.60, for a total transaction of $100,373.20. Following the sale, the chief accounting officer owned 5,300 shares of the company's stock, valued at approximately $946,580. The trade was a 9.59% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. 0.24% of the stock is currently owned by corporate insiders.

Institutional Trading of Applied Materials

Hedge funds have recently made changes to their positions in the company. Runnymede Capital Advisors Inc. grew its holdings in Applied Materials by 972.2% during the 1st quarter. Runnymede Capital Advisors Inc. now owns 193 shares of the manufacturing equipment provider's stock worth $28,000 after acquiring an additional 175 shares during the last quarter. Smallwood Wealth Investment Management LLC acquired a new position in shares of Applied Materials during the first quarter worth $29,000. Clal Insurance Enterprises Holdings Ltd grew its stake in shares of Applied Materials by 435.0% in the first quarter. Clal Insurance Enterprises Holdings Ltd now owns 214 shares of the manufacturing equipment provider's stock worth $31,000 after purchasing an additional 174 shares during the last quarter. Activest Wealth Management increased its holdings in Applied Materials by 5,325.0% in the first quarter. Activest Wealth Management now owns 217 shares of the manufacturing equipment provider's stock valued at $31,000 after purchasing an additional 213 shares during the period. Finally, Greenline Partners LLC bought a new position in Applied Materials during the 1st quarter worth $39,000. 80.56% of the stock is owned by institutional investors and hedge funds.

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.