Applied Materials (NASDAQ:AMAT) Trading Up 1.4% - Here's Why

Key Points

• Applied Materials' stock rose by 1.4% to $187.41, with trading volume significantly lower than its average.
• Analysts have varied price targets for the stock, with consensus rating as "Moderate Buy" and a target price of approximately $204.09.
• The company recently announced a $0.46 quarterly dividend, yielding about 1.0%, with a payout ratio of 22.38%.

Applied Materials, Inc. (NASDAQ:AMAT - Get Free Report)'s stock price was up 1.4% during trading on Monday . The company traded as high as $189.72 and last traded at $187.41. Approximately 1,922,166 shares traded hands during trading, a decline of 73% from the average daily volume of 7,194,633 shares. The stock had previously closed at $184.87.

Analysts Set New Price Targets

A number of equities research analysts recently commented on AMAT shares. Stifel Nicolaus dropped their price objective on shares of Applied Materials from $235.00 to $195.00 and set a "buy" rating on the stock in a report on Tuesday, April 15th. UBS Group reiterated a "neutral" rating and issued a $185.00 price target (up from $175.00) on shares of Applied Materials in a research note on Monday, August 4th. Morgan Stanley lifted their price target 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. Wells Fargo & Company lifted their price objective on shares of Applied Materials from $200.00 to $215.00 and gave the company an "overweight" rating in a research report on Tuesday, July 8th. Finally, Raymond James Financial reaffirmed an "outperform" rating and set a $200.00 target price (down previously from $225.00) on shares of Applied Materials in a report on Friday, May 16th. Nine equities research analysts have rated the stock with a hold rating and seventeen have assigned a buy rating to the company's stock. According to MarketBeat, Applied Materials has a consensus rating of "Moderate Buy" and a consensus target price of $204.09.

Applied Materials Stock Down 0.3%

The firm's 50-day moving average price is $182.16 and its 200 day moving average price is $166.39. The company has a market capitalization of $147.96 billion, a price-to-earnings ratio of 22.43, a PEG ratio of 2.06 and a beta of 1.70. The company has a current ratio of 2.46, a quick ratio of 1.76 and a debt-to-equity ratio of 0.29.

Applied Materials (NASDAQ:AMAT - Get Free Report) last issued 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 during the quarter, compared to analysts' expectations of $7.12 billion. Applied Materials had a net margin of 24.06% and a return on equity of 40.15%. The business's revenue for the quarter was up 6.8% compared to the same quarter last year. During the same period in the previous year, the company earned $2.09 EPS. On average, sell-side analysts forecast that Applied Materials, Inc. will post 9.38 EPS for the current fiscal year.

Applied Materials Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, September 11th. Investors of record on Thursday, August 21st will be given a dividend of $0.46 per share. This represents a $1.84 dividend on an annualized basis and a yield of 1.0%. The ex-dividend date is Thursday, August 21st. Applied Materials's dividend payout ratio is currently 22.38%.

Insider Transactions at Applied Materials

In related news, CAO Adam Sanders sold 562 shares of the company's 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 in the company, valued at $946,580. This represents a 9.59% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. 0.24% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Applied Materials

A number of institutional investors have recently added to or reduced their stakes in AMAT. Maseco LLP bought a new stake in Applied Materials during the 2nd quarter worth approximately $30,000. Financial Gravity Companies Inc. bought a new stake in Applied Materials during the 2nd quarter worth approximately $31,000. Runnymede Capital Advisors Inc. grew its holdings in Applied Materials by 972.2% during the 1st quarter. Runnymede Capital Advisors Inc. now owns 193 shares of the manufacturing equipment provider's stock worth $28,000 after acquiring an additional 175 shares during the last quarter. Smallwood Wealth Investment Management LLC bought a new stake in Applied Materials during the 1st quarter worth approximately $29,000. Finally, Clal Insurance Enterprises Holdings Ltd grew its holdings in Applied Materials by 435.0% during the 1st 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 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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