Applied Materials (NASDAQ:AMAT) Trading Up 1.1% - Still a Buy?

Key Points

• Applied Materials Inc. saw a minor stock increase of 1.1%, trading last at $163.70, significantly lower than its 50-day moving average price of $182.83.
• Analysts have mixed sentiments, with 17 Buy ratings, 13 Holds, and 1 Sell, while price targets range from $200 to $220.
• The company recently declared a quarterly dividend of $0.46, representing a 1.1% dividend yield.

Applied Materials, Inc. (NASDAQ:AMAT - Get Free Report) traded up 1.1% on Tuesday . The stock traded as high as $163.71 and last traded at $163.70. 999,549 shares changed hands during mid-day trading, a decline of 86% from the average session volume of 7,383,478 shares. The stock had previously closed at $161.99.

Wall Street Analyst Weigh In

Several research analysts have commented on AMAT shares. Rothschild & Co Redburn downgraded Applied Materials from a "buy" rating to a "neutral" rating and set a $200.00 target price on the stock. in a report on Monday, July 7th. JPMorgan Chase & Co. upped their price target on shares of Applied Materials from $210.00 to $220.00 and gave the company an "overweight" rating in a research note on Friday, August 15th. Mizuho cut their price target on shares of Applied Materials from $220.00 to $200.00 and set an "outperform" rating for the company in a report on Friday, August 15th. Cantor Fitzgerald lowered their price target on shares of Applied Materials from $220.00 to $200.00 and set an "overweight" rating for the company in a research note on Friday, August 15th. Finally, Wolfe Research cut their price target on shares of Applied Materials from $230.00 to $200.00 and set an "outperform" rating on the stock in a report on Friday, August 15th. Seventeen analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $193.88.

Applied Materials Stock Performance

The company has a quick ratio of 1.76, a current ratio of 2.50 and a debt-to-equity ratio of 0.28. The business has a 50 day moving average price of $182.83 and a two-hundred day moving average price of $165.77. The stock has a market cap of $130.66 billion, a P/E ratio of 19.57, a price-to-earnings-growth ratio of 2.32 and a beta of 1.70.

Applied Materials (NASDAQ:AMAT - Get Free Report) last announced its earnings results on Thursday, August 14th. The manufacturing equipment provider reported $2.48 earnings per share for the quarter, beating the consensus estimate of $2.36 by $0.12. Applied Materials had a net margin of 23.88% and a return on equity of 40.96%. The business had revenue of $7.30 billion for the quarter, compared to the consensus estimate of $7.21 billion. During the same quarter in the prior year, the firm posted $2.12 earnings per share. The business's revenue for the quarter was up 7.7% on a year-over-year basis. Applied Materials has set its Q4 2025 guidance at 1.910-2.310 EPS. On average, sell-side analysts forecast that Applied Materials, Inc. will post 9.38 earnings per share for the current fiscal year.

Applied Materials Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, September 11th. Stockholders of record on Thursday, August 21st will be issued a $0.46 dividend. 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 1.1%. Applied Materials's dividend payout ratio is currently 21.93%.

Insider Buying and Selling at Applied Materials

In other news, CAO Adam Sanders sold 562 shares of Applied Materials stock in a transaction that occurred on Tuesday, June 24th. The shares were 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 of the company's stock, valued at $946,580. The trade was a 9.59% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. 0.24% of the stock is owned by insiders.

Institutional Investors Weigh In On Applied Materials

Hedge funds have recently modified their holdings of the business. Skye Global Management LP purchased a new stake in shares of Applied Materials in the fourth quarter valued at about $45,862,000. Value Partners Investments Inc. lifted its position in Applied Materials by 8.7% in the fourth quarter. Value Partners Investments Inc. now owns 9,896 shares of the manufacturing equipment provider's stock valued at $1,608,000 after buying an additional 793 shares during the last quarter. Leonard Rickey Investment Advisors P.L.L.C. acquired a new position in shares of Applied Materials in the first quarter worth $230,000. Generali Investments Towarzystwo Funduszy Inwestycyjnych grew its stake in shares of Applied Materials by 12.7% in the first quarter. Generali Investments Towarzystwo Funduszy Inwestycyjnych now owns 26,650 shares of the manufacturing equipment provider's stock worth $3,867,000 after acquiring an additional 3,000 shares in the last quarter. Finally, Redwood Investment Management LLC grew its stake in shares of Applied Materials by 311.2% in the first quarter. Redwood Investment Management LLC now owns 12,924 shares of the manufacturing equipment provider's stock worth $1,876,000 after acquiring an additional 9,781 shares in the last quarter. 80.56% of the stock is currently owned by institutional investors and hedge funds.

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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