Applied Materials (NASDAQ:AMAT) Trading Up 2.3% - Time to Buy?

Key Points

• Applied Materials' stock price rose by 2.3%, reaching a last trade of $189.90, though trading volume decreased significantly to just over 1.1 million shares compared to its average of 7.3 million.
• Analyst ratings on Applied Materials are predominantly positive, with seventeen buy ratings and a consensus target price of $205.17, while several firms have adjusted their target prices recently.
• The company reported a quarterly EPS of $2.39, surpassing analysts' expectations, and revenue for the quarter was approximately $7.10 billion, reflecting a year-over-year increase of 6.8%.

Applied Materials, Inc. (NASDAQ:AMAT - Get Free Report)'s stock price was up 2.3% on Monday . The company traded as high as $190.26 and last traded at $189.90. Approximately 1,194,851 shares traded hands during mid-day trading, a decline of 84% from the average daily volume of 7,276,344 shares. The stock had previously closed at $185.69.

Wall Street Analyst Weigh In

A number of analysts have weighed in on AMAT shares. B. Riley lowered their price target on Applied Materials from $250.00 to $215.00 and set a "buy" rating on the stock in a research report on Monday, May 12th. Needham & Company LLC restated a "buy" rating and set a $195.00 target price on shares of Applied Materials in a report on Friday, May 16th. Cantor Fitzgerald set a $220.00 target price on Applied Materials and gave the stock an "overweight" rating in a report on Tuesday, June 24th. Bank of America decreased their target price on Applied Materials from $205.00 to $190.00 and set a "buy" rating on the stock in a report on Wednesday, April 16th. Finally, Rothschild & Co Redburn cut 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. Nine research analysts have rated the stock with a hold rating and seventeen have issued a buy rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $205.17.

Applied Materials Stock Up 2.2%

The firm has a 50 day simple moving average of $177.59 and a two-hundred day simple moving average of $166.44. 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 cap of $152.26 billion, a price-to-earnings ratio of 23.10, a price-to-earnings-growth ratio of 2.07 and a beta of 1.69.

Applied Materials (NASDAQ:AMAT - Get Free Report) last released its quarterly earnings results on Thursday, May 15th. The manufacturing equipment provider reported $2.39 EPS for the quarter, topping analysts' consensus estimates of $2.31 by $0.08. The company had revenue of $7.10 billion for the quarter, compared to analyst estimates of $7.12 billion. Applied Materials had a return on equity of 40.15% and a net margin of 24.06%. Applied Materials's revenue was up 6.8% compared to the same quarter last year. During the same quarter last year, the firm posted $2.09 earnings per share. As a group, sell-side analysts expect that Applied Materials, Inc. will post 9.38 EPS for the current year.

Applied Materials Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, September 11th. Stockholders of record on Thursday, August 21st will be given a $0.46 dividend. The ex-dividend date is Thursday, August 21st. This represents a $1.84 dividend on an annualized basis and a dividend yield of 0.97%. Applied Materials's payout ratio is 22.38%.

Insider Activity

In related news, CAO Adam Sanders sold 562 shares of Applied Materials stock in a transaction that occurred 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 completion of the sale, 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 position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. 0.24% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Applied Materials

Several hedge funds and other institutional investors have recently modified their holdings of the business. Shelton Wealth Management LLC grew its position in Applied Materials by 1.5% during the 2nd quarter. Shelton Wealth Management LLC now owns 3,398 shares of the manufacturing equipment provider's stock worth $622,000 after acquiring an additional 51 shares during the last quarter. Octavia Wealth Advisors LLC grew its position in shares of Applied Materials by 0.8% in the 2nd quarter. Octavia Wealth Advisors LLC now owns 6,200 shares of the manufacturing equipment provider's stock valued at $1,135,000 after buying an additional 51 shares during the last quarter. Narus Financial Partners LLC grew its position in shares of Applied Materials by 3.8% in the 2nd quarter. Narus Financial Partners LLC now owns 1,433 shares of the manufacturing equipment provider's stock valued at $262,000 after buying an additional 52 shares during the last quarter. AdvisorNet Financial Inc grew its position in shares of Applied Materials by 2.7% in the 2nd quarter. AdvisorNet Financial Inc now owns 1,958 shares of the manufacturing equipment provider's stock valued at $358,000 after buying an additional 52 shares during the last quarter. Finally, Encompass Wealth Advisors LLC grew its position in shares of Applied Materials by 3.4% in the 2nd quarter. Encompass Wealth Advisors LLC now owns 1,601 shares of the manufacturing equipment provider's stock valued at $293,000 after buying an additional 53 shares during the last quarter. Institutional investors own 80.56% of the company's stock.

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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