Applied Materials (NASDAQ:AMAT) Trading Up 1.1% on Analyst Upgrade

Key Points

• Applied Materials' stock price rose by 1.1% after JPMorgan Chase upgraded its price target from $210.00 to $220.00, maintaining an overweight rating.
• Analysts have mixed opinions, with eleven holding a buy rating, one a sell rating, and several adjusting their price targets, leading to a current consensus rating of Moderate Buy.
• Applied Materials declared a quarterly dividend of $0.46, expected to be paid on September 11, reflecting an annualized yield of 1.1%.

Applied Materials, Inc. (NASDAQ:AMAT - Get Free Report) shares traded up 1.1% during mid-day trading on Monday after JPMorgan Chase & Co. raised their price target on the stock from $210.00 to $220.00. JPMorgan Chase & Co. currently has an overweight rating on the stock. Applied Materials traded as high as $164.26 and last traded at $163.53. 3,095,537 shares traded hands during mid-day trading, a decline of 58% from the average session volume of 7,367,061 shares. The stock had previously closed at $161.76.

AMAT has been the topic of several other research reports. DZ Bank cut shares of Applied Materials from a "hold" rating to a "sell" rating and set a $150.00 price target on the stock. in a research report on Friday. Bank of America reaffirmed a "neutral" rating and issued a $180.00 target price (down previously from $190.00) on shares of Applied Materials in a report on Friday. The Goldman Sachs Group assumed coverage on shares of Applied Materials in a report on Thursday, July 10th. They issued a "buy" rating and a $225.00 target price on the stock. Wall Street Zen cut shares of Applied Materials from a "buy" rating to a "hold" rating in a report on Saturday, June 14th. Finally, Raymond James Financial reaffirmed an "outperform" rating and issued a $200.00 target price (down previously from $225.00) on shares of Applied Materials in a report on Friday, May 16th. One research analyst has rated the stock with a sell rating, eleven have given a hold rating and seventeen have assigned a buy rating to the company. According to data from MarketBeat.com, Applied Materials currently has a consensus rating of "Moderate Buy" and an average price target of $194.84.

Insider Activity at Applied Materials

In other news, CAO Adam Sanders sold 562 shares of the firm's stock in a transaction on Tuesday, June 24th. The stock was sold at an average price of $178.60, for a total transaction of $100,373.20. Following the transaction, the chief accounting officer directly owned 5,300 shares of the company's stock, valued at approximately $946,580. This trade represents a 9.59% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Company insiders own 0.24% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the company. Eagle Capital Management LLC boosted its position in Applied Materials by 1.8% during the 4th quarter. Eagle Capital Management LLC now owns 16,004 shares of the manufacturing equipment provider's stock worth $2,603,000 after acquiring an additional 290 shares during the period. Brighton Jones LLC lifted its holdings in Applied Materials by 28.0% in the 4th quarter. Brighton Jones LLC now owns 12,674 shares of the manufacturing equipment provider's stock worth $2,061,000 after purchasing an additional 2,771 shares during the last quarter. Value Partners Investments Inc. lifted its holdings in shares of Applied Materials by 8.7% during the fourth quarter. Value Partners Investments Inc. now owns 9,896 shares of the manufacturing equipment provider's stock worth $1,608,000 after buying an additional 793 shares during the last quarter. Jump Financial LLC lifted its holdings in shares of Applied Materials by 69.9% during the fourth quarter. Jump Financial LLC now owns 4,829 shares of the manufacturing equipment provider's stock worth $785,000 after buying an additional 1,986 shares during the last quarter. Finally, GeoWealth Management LLC increased its position in shares of Applied Materials by 23.5% during the fourth quarter. GeoWealth Management LLC now owns 6,338 shares of the manufacturing equipment provider's stock valued at $1,031,000 after purchasing an additional 1,208 shares during the period. 80.56% of the stock is owned by institutional investors and hedge funds.

Applied Materials Trading Up 1.3%

The firm has a market capitalization of $131.46 billion, a P/E ratio of 19.49, a PEG ratio of 1.81 and a beta of 1.70. The company has a quick ratio of 1.76, a current ratio of 2.46 and a debt-to-equity ratio of 0.29. The business has a 50-day moving average price of $184.18 and a 200-day moving average price of $166.54.

Applied Materials (NASDAQ:AMAT - Get Free Report) last released its quarterly earnings data on Thursday, August 14th. The manufacturing equipment provider reported $2.48 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.36 by $0.12. The business had revenue of $7.30 billion for the quarter, compared to analysts' expectations of $7.21 billion. Applied Materials had a return on equity of 41.31% and a net margin of 23.88%. Applied Materials's quarterly revenue was up 7.7% on a year-over-year basis. During the same period in the previous year, the business posted $2.12 earnings per share. Analysts anticipate that Applied Materials, Inc. will post 9.38 earnings per share for the current year.

Applied Materials Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, September 11th. Investors of record on Thursday, August 21st will be given a $0.46 dividend. This represents a $1.84 annualized dividend and a yield of 1.1%. The ex-dividend date of this dividend is Thursday, August 21st. Applied Materials's dividend payout ratio is 21.93%.

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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