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

Applied Materials, Inc. (NASDAQ:AMAT - Get Free Report)'s stock price was up 1.3% during mid-day trading on Monday . The company traded as high as $171.97 and last traded at $171.58. Approximately 1,635,248 shares changed hands during trading, a decline of 77% from the average daily volume of 6,984,333 shares. The stock had previously closed at $169.46.

Analysts Set New Price Targets

A number of research analysts recently issued reports on AMAT shares. B. Riley decreased their price objective on Applied Materials from $250.00 to $215.00 and set a "buy" rating for the company in a report on Monday, May 12th. Stifel Nicolaus decreased their price objective on Applied Materials from $235.00 to $195.00 and set a "buy" rating for the company in a report on Tuesday, April 15th. JPMorgan Chase & Co. decreased their price objective on shares of Applied Materials from $240.00 to $210.00 and set an "overweight" rating for the company in a research report on Friday, May 16th. Bank of America reduced their price objective on shares of Applied Materials from $205.00 to $190.00 and set a "buy" rating for the company in a research report on Wednesday, April 16th. Finally, Wall Street Zen lowered shares of Applied Materials from a "buy" rating to a "hold" rating in a research note on Saturday, June 14th. Seven equities research analysts have rated the stock with a hold rating and sixteen have assigned a buy rating to the company's stock. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $200.24.

Applied Materials Stock Up 4.8%

The firm has a market capitalization of $144.59 billion, a price-to-earnings ratio of 21.92, a P/E/G ratio of 1.91 and a beta of 1.67. The stock has a fifty day moving average of $159.66 and a two-hundred day moving average of $162.88. 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 announced its earnings results 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 return on equity of 40.15% and a net margin of 24.06%. The business had revenue of $7.10 billion during the quarter, compared to analyst estimates of $7.12 billion. During the same period last year, the company earned $2.09 EPS. Applied Materials's revenue for the quarter was up 6.8% compared to the same quarter last year. Sell-side analysts anticipate that Applied Materials, Inc. will post 9.38 earnings per share for the current year.

Applied Materials Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, September 11th. Shareholders of record on Thursday, August 21st will be issued a $0.46 dividend. The ex-dividend date is Thursday, August 21st. This represents a $1.84 dividend on an annualized basis and a yield of 1.02%. Applied Materials's payout ratio is currently 22.38%.

Applied Materials announced that its board has authorized a stock repurchase plan on Monday, March 10th that authorizes the company to repurchase $10.00 billion in shares. This repurchase authorization authorizes the manufacturing equipment provider to buy up to 8.2% of its stock through open market purchases. Stock repurchase plans are generally a sign that the company's leadership believes its stock is undervalued.

Insider Activity

In other news, CEO Gary E. Dickerson acquired 50,000 shares of the firm's stock in a transaction dated Thursday, April 3rd. The stock was purchased at an average price of $137.30 per share, for a total transaction of $6,865,000.00. Following the completion of the acquisition, the chief executive officer now directly owns 1,716,058 shares in the company, valued at $235,614,763.40. The trade was a 3.00% increase in their position. The purchase was disclosed in a document filed with the SEC, which can be accessed through this link. Also, CAO Adam Sanders sold 450 shares of the business's stock in a transaction dated Tuesday, April 1st. The stock was sold at an average price of $144.83, for a total transaction of $65,173.50. Following the sale, the chief accounting officer now directly owns 6,077 shares of the company's stock, valued at approximately $880,131.91. The trade was a 6.89% decrease in their ownership of the stock. The disclosure for this sale can be found here. 0.24% of the stock is currently owned by company insiders.

Institutional Trading of Applied Materials

A number of institutional investors and hedge funds have recently modified their holdings of AMAT. Howe & Rusling Inc. grew its holdings in Applied Materials by 0.9% during the first quarter. Howe & Rusling Inc. now owns 17,629 shares of the manufacturing equipment provider's stock valued at $2,558,000 after purchasing an additional 153 shares during the period. Guinness Asset Management LTD boosted its holdings in Applied Materials by 5.3% in the 1st quarter. Guinness Asset Management LTD now owns 229,266 shares of the manufacturing equipment provider's stock worth $33,270,000 after buying an additional 11,588 shares during the period. Maple Capital Management Inc. boosted its holdings in Applied Materials by 3.0% in the 1st quarter. Maple Capital Management Inc. now owns 85,768 shares of the manufacturing equipment provider's stock worth $12,447,000 after buying an additional 2,480 shares during the period. First Hawaiian Bank boosted its holdings in Applied Materials by 2.3% in the 1st quarter. First Hawaiian Bank now owns 12,053 shares of the manufacturing equipment provider's stock worth $1,749,000 after buying an additional 272 shares during the period. Finally, Modern Wealth Management LLC boosted its holdings in Applied Materials by 126.0% in the 1st quarter. Modern Wealth Management LLC now owns 17,057 shares of the manufacturing equipment provider's stock worth $2,475,000 after buying an additional 9,509 shares during the period. 80.56% of the stock is owned by hedge funds and other institutional investors.

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.