Applied Materials (NASDAQ:AMAT) Trading Down 1.1% - Should You Sell?

Key Points

• Applied Materials' stock is currently down 1.1%, trading around $178.11, with a significant drop in trading volume at about 3.3 million shares compared to its average.
• A range of analyst updates have resulted in varying price targets for the stock, with changes including Redburn Atlantic downgrading to a "hold" at $200 and Citigroup raising their target to $220 with a "buy" rating.
• The company recently announced a quarterly dividend of $0.46, which equates to a 1.0% yield, set to be paid on September 11th.

Applied Materials, Inc. (NASDAQ:AMAT - Get Free Report) was down 1.1% during mid-day trading on Friday . The company traded as low as $176.25 and last traded at $178.11. Approximately 3,301,289 shares changed hands during mid-day trading, a decline of 55% from the average daily volume of 7,259,270 shares. The stock had previously closed at $180.06.

Analyst Upgrades and Downgrades

A number of equities analysts have issued reports on AMAT shares. Redburn Atlantic cut shares of Applied Materials from a "strong-buy" rating to a "hold" rating and cut their target price for the stock from $225.00 to $200.00 in a report on Monday, July 7th. JPMorgan Chase & Co. dropped their price target on shares of 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 target on shares of Applied Materials from $190.00 to $220.00 and gave the company a "buy" rating in a report on Monday, July 7th. The Goldman Sachs Group started coverage on shares of Applied Materials in a research report on Thursday, July 10th. They set a "buy" rating and a $225.00 price objective for the company. Finally, Morgan Stanley raised their price objective on shares of Applied Materials from $158.00 to $169.00 and gave the company an "equal weight" rating in a research note on Tuesday, July 1st. Nine analysts have rated the stock with a hold rating and seventeen have assigned a buy rating to the company. According to MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $205.17.

Applied Materials Price Performance

The firm has a fifty day moving average of $179.46 and a two-hundred day moving average of $166.95. 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 stock has a market capitalization of $143.92 billion, a P/E ratio of 21.80, a P/E/G ratio of 2.11 and a beta of 1.69.

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 (EPS) 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 quarter in the previous year, the firm earned $2.09 earnings per share. The firm's quarterly revenue was up 6.8% compared to the same quarter last year. On average, analysts predict that Applied Materials, Inc. will post 9.38 EPS for the current year.

Applied Materials Dividend Announcement

The business 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. This represents a $1.84 annualized dividend and a yield of 1.0%. The ex-dividend date is Thursday, August 21st. Applied Materials's dividend payout ratio is presently 22.38%.

Insider Transactions at Applied Materials

In related news, CAO Adam Sanders sold 562 shares of the firm's 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 completion of the transaction, the chief accounting officer directly owned 5,300 shares in the company, valued at $946,580. This trade represents a 9.59% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. 0.24% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Applied Materials

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Northern Trust Corp increased its holdings in shares of Applied Materials by 18.6% in the fourth quarter. Northern Trust Corp now owns 10,230,464 shares of the manufacturing equipment provider's stock valued at $1,663,780,000 after purchasing an additional 1,602,645 shares during the period. Ameriprise Financial Inc. increased its holdings in shares of Applied Materials by 23.6% in the first quarter. Ameriprise Financial Inc. now owns 7,860,838 shares of the manufacturing equipment provider's stock valued at $1,140,836,000 after purchasing an additional 1,502,995 shares during the period. Amundi increased its holdings in shares of Applied Materials by 15.8% in the first quarter. Amundi now owns 7,656,034 shares of the manufacturing equipment provider's stock valued at $1,038,504,000 after purchasing an additional 1,046,635 shares during the period. Nuveen LLC acquired a new position in shares of Applied Materials in the first quarter valued at approximately $1,085,600,000. Finally, Deutsche Bank AG increased its holdings in shares of Applied Materials by 20.7% in the first quarter. Deutsche Bank AG now owns 7,189,402 shares of the manufacturing equipment provider's stock valued at $1,043,326,000 after purchasing an additional 1,235,097 shares during the period. 80.56% of the stock is currently 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.

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