Applied Materials (NASDAQ:AMAT) Shares Down 2.4% - Should You Sell?

Applied Materials, Inc. (NASDAQ:AMAT - Get Free Report)'s share price fell 2.4% during trading on Friday . The company traded as low as $155.66 and last traded at $156.74. 1,479,471 shares changed hands during trading, a decline of 78% from the average session volume of 6,863,793 shares. The stock had previously closed at $160.52.

Analyst Ratings Changes

Several brokerages have recently weighed in on AMAT. Cantor Fitzgerald lowered their target price on shares of Applied Materials from $220.00 to $200.00 and set an "overweight" rating on the stock in a report on Monday, May 12th. Needham & Company LLC reaffirmed a "buy" rating and issued a $195.00 price objective on shares of Applied Materials in a report on Friday, May 16th. Citigroup boosted their target price on Applied Materials from $170.00 to $190.00 and gave the stock a "buy" rating in a research report on Friday, May 16th. B. Riley reduced their price target on Applied Materials from $250.00 to $215.00 and set a "buy" rating for the company in a report on Monday, May 12th. Finally, Stifel Nicolaus decreased their target price on Applied Materials from $235.00 to $195.00 and set a "buy" rating on the stock in a research report on Tuesday, April 15th. One equities research analyst has rated the stock with a sell rating, six have given a hold rating and sixteen have given a buy rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $199.48.

Applied Materials Stock Performance

The firm's 50-day moving average price is $150.21 and its two-hundred day moving average price is $164.15. The company has a quick ratio of 1.96, a current ratio of 2.67 and a debt-to-equity ratio of 0.29. The firm has a market capitalization of $130.83 billion, a PE ratio of 21.03, a P/E/G ratio of 1.81 and a beta of 1.71.

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, beating the consensus estimate of $2.31 by $0.08. Applied Materials had a net margin of 22.95% and a return on equity of 39.50%. The company had revenue of $7.10 billion for the quarter, compared to the consensus estimate of $7.12 billion. During the same period in the previous year, the business earned $2.09 EPS. The company's revenue was up 6.8% on a year-over-year basis. As a group, research analysts predict that Applied Materials, Inc. will post 9.38 earnings per share for the current fiscal year.

Applied Materials Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, June 12th. Stockholders of record on Thursday, May 22nd will be issued a $0.46 dividend. This is an increase from Applied Materials's previous quarterly dividend of $0.40. The ex-dividend date of this dividend is Thursday, May 22nd. This represents a $1.84 dividend on an annualized basis and a dividend yield of 1.14%. Applied Materials's dividend payout ratio is currently 22.38%.

Applied Materials announced that its board has approved a stock repurchase program on Monday, March 10th that authorizes the company to buyback $10.00 billion in shares. This buyback authorization authorizes the manufacturing equipment provider to repurchase up to 8.2% of its stock through open market purchases. Stock buyback programs are usually an indication that the company's board believes its stock is undervalued.

Insider Activity at Applied Materials

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

Hedge Funds Weigh In On Applied Materials

A number of hedge funds have recently added to or reduced their stakes in the company. FPC Investment Advisory Inc. acquired a new stake in shares of Applied Materials in the 4th quarter valued at $28,000. Crews Bank & Trust acquired a new stake in shares of Applied Materials in the fourth quarter worth $28,000. Runnymede Capital Advisors Inc. boosted its holdings 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 valued at $28,000 after acquiring an additional 175 shares during the period. YANKCOM Partnership bought a new stake in Applied Materials during the 4th quarter valued at approximately $32,000. Finally, Smallwood Wealth Investment Management LLC acquired a new stake in shares of Applied Materials in the first quarter worth $29,000. 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.