Applied Materials (NASDAQ:AMAT) Trading 3% Higher - Here's What Happened

Key Points

• Applied Materials stock rose by 3% in mid-day trading, reaching a high of $186.80 before closing at $183.46, despite a significant decline in trading volume.
• Equities research analysts have set a consensus price target of $204.09 for Applied Materials, with various upgrades and downgrades from firms including TD Cowen and Barclays.
• The company recently announced a quarterly dividend of $0.46 per share, representing a dividend yield of 1.0%, with a payout ratio of 22.38%.

Applied Materials, Inc. (NASDAQ:AMAT - Get Free Report) traded up 3% during mid-day trading on Thursday . The stock traded as high as $186.80 and last traded at $183.46. 2,395,112 shares changed hands during trading, a decline of 67% from the average session volume of 7,220,853 shares. The stock had previously closed at $178.14.

Analysts Set New Price Targets

A number of equities research analysts have recently weighed in on the company. TD Cowen cut their price target on Applied Materials from $225.00 to $220.00 and set a "buy" rating on the stock in a report on Friday, May 16th. Barclays raised their price target on Applied Materials from $160.00 to $170.00 and gave the company an "equal weight" rating in a report on Monday, July 28th. Citigroup raised their price objective on Applied Materials from $190.00 to $220.00 and gave the stock a "buy" rating in a research note on Monday, July 7th. Wall Street Zen downgraded shares of Applied Materials from a "buy" rating to a "hold" rating in a research report on Saturday, June 14th. Finally, 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. Nine equities research analysts have rated the stock with a hold rating and seventeen have issued a buy rating to the company's stock. According to data from MarketBeat.com, Applied Materials presently has an average rating of "Moderate Buy" and a consensus price target of $204.09.

Applied Materials Stock Performance

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 has a 50 day simple moving average of $181.10 and a 200-day simple moving average of $166.87. The firm has a market cap of $146.98 billion, a PE ratio of 22.28, a price-to-earnings-growth ratio of 1.99 and a beta of 1.70.

Applied Materials (NASDAQ:AMAT - Get Free Report) last released its earnings results on Thursday, May 15th. The manufacturing equipment provider reported $2.39 EPS for the quarter, beating the consensus estimate of $2.31 by $0.08. The company had revenue of $7.10 billion for the quarter, compared to analyst estimates of $7.12 billion. Applied Materials had a net margin of 24.06% and a return on equity of 40.15%. The firm's quarterly revenue was up 6.8% compared to the same quarter last year. During the same quarter last year, the firm earned $2.09 EPS. As a group, equities research analysts anticipate that Applied Materials, Inc. will post 9.38 EPS for the current year.

Applied Materials Announces Dividend

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 paid a dividend of $0.46 per share. The ex-dividend date of this dividend is Thursday, August 21st. This represents a $1.84 dividend on an annualized basis and a dividend yield of 1.0%. Applied Materials's dividend payout ratio (DPR) is currently 22.38%.

Insider Activity

In related news, CAO Adam Sanders sold 562 shares of the company's stock in a transaction that occurred on Tuesday, June 24th. The stock was 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 position. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Insiders own 0.24% of the company's stock.

Institutional Investors Weigh In On Applied Materials

A number of institutional investors have recently modified their holdings of AMAT. Runnymede Capital Advisors Inc. increased its holdings 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 in the last quarter. Smallwood Wealth Investment Management LLC bought a new position in Applied Materials during the 1st quarter valued at about $29,000. Maseco LLP purchased a new stake in shares of Applied Materials during the 2nd quarter valued at about $30,000. 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 acquiring an additional 174 shares during the period. Finally, Activest Wealth Management raised its holdings in shares of Applied Materials by 5,325.0% during 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 last quarter. 80.56% of the stock is owned by hedge funds and other institutional investors.

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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