Two Sigma Advisers LP Raises Stock Position in Applied Materials, Inc. (NASDAQ:AMAT)

Two Sigma Advisers LP grew its stake in Applied Materials, Inc. (NASDAQ:AMAT - Free Report) by 756.1% in the fourth quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 511,100 shares of the manufacturing equipment provider's stock after acquiring an additional 451,400 shares during the period. Two Sigma Advisers LP owned 0.06% of Applied Materials worth $83,120,000 as of its most recent filing with the Securities and Exchange Commission.

Other institutional investors also recently modified their holdings of the company. Crews Bank & Trust bought a new position in shares of Applied Materials in the fourth quarter worth about $28,000. FPC Investment Advisory Inc. bought a new stake in shares of Applied Materials during the fourth quarter worth approximately $28,000. YANKCOM Partnership bought a new stake in shares of Applied Materials during the fourth quarter worth approximately $32,000. City Holding Co. bought a new stake in shares of Applied Materials during the fourth quarter worth approximately $39,000. Finally, Atala Financial Inc bought a new stake in shares of Applied Materials during the fourth quarter worth approximately $45,000. 80.56% of the stock is owned by institutional investors.

Analyst Ratings Changes

A number of equities research analysts recently weighed in on the stock. Citigroup boosted their price target on shares of Applied Materials from $170.00 to $190.00 and gave the stock a "buy" rating in a research note on Friday, May 16th. Wells Fargo & Company reissued a "mixed" rating on shares of Applied Materials in a research note on Friday, May 16th. Morgan Stanley dropped their price target on shares of Applied Materials from $164.00 to $162.00 and set an "underweight" rating for the company in a research note on Friday, May 16th. Needham & Company LLC reaffirmed a "buy" rating and issued a $195.00 target price on shares of Applied Materials in a research note on Friday, May 16th. Finally, Mizuho lowered their target price on shares of Applied Materials from $205.00 to $195.00 and set an "outperform" rating for the company in a research note on Friday, May 16th. One analyst has rated the stock with a sell rating, six have given a hold rating and sixteen have assigned a buy rating to the company's stock. According to MarketBeat, Applied Materials currently has an average rating of "Moderate Buy" and an average price target of $199.48.

Applied Materials Stock Down 1.1%

Shares of Applied Materials stock traded down $1.71 during trading hours on Thursday, reaching $160.52. The company's stock had a trading volume of 6,354,025 shares, compared to its average volume of 6,884,579. Applied Materials, Inc. has a one year low of $123.74 and a one year high of $255.89. The company has a market capitalization of $130.41 billion, a P/E ratio of 20.98, a P/E/G ratio of 1.81 and a beta of 1.71. The stock's fifty day simple moving average is $149.97 and its two-hundred day simple moving average is $165.10. The company has a debt-to-equity ratio of 0.29, a quick ratio of 1.96 and a current ratio of 2.67.

Applied Materials (NASDAQ:AMAT - Get Free Report) last announced 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 the consensus estimate of $7.12 billion. Applied Materials had a net margin of 22.95% and a return on equity of 39.50%. The firm's revenue for the quarter was up 6.8% on a year-over-year basis. During the same quarter in the prior year, the company posted $2.09 earnings per share. On average, research analysts forecast that Applied Materials, Inc. will post 9.38 earnings per share for the current 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 paid a dividend of $0.46 per share. This represents a $1.84 dividend on an annualized basis and a dividend yield of 1.15%. This is a boost from Applied Materials's previous quarterly dividend of $0.40. The ex-dividend date of this dividend is Thursday, May 22nd. Applied Materials's payout ratio is presently 22.38%.

Applied Materials declared that its board has authorized a stock repurchase program on Monday, March 10th that allows the company to repurchase $10.00 billion in shares. This repurchase authorization allows the manufacturing equipment provider to buy up to 8.2% of its stock through open market purchases. Stock repurchase programs are usually a sign that the company's leadership believes its shares are undervalued.

Insider Transactions at Applied Materials

In related news, CEO Gary E. Dickerson acquired 50,000 shares of the firm's stock in a transaction that occurred on Thursday, April 3rd. The stock was acquired at an average price of $137.30 per share, for a total transaction of $6,865,000.00. Following the completion of the acquisition, the chief executive officer now owns 1,716,058 shares of the company's stock, valued at approximately $235,614,763.40. This represents a 3.00% increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Also, CAO Adam Sanders sold 450 shares of Applied Materials stock in a transaction dated Tuesday, April 1st. The stock was sold at an average price of $144.83, for a total transaction of $65,173.50. Following the completion of the transaction, the chief accounting officer now owns 6,077 shares of the company's stock, valued at $880,131.91. The trade was a 6.89% decrease in their position. The disclosure for this sale can be found here. Company insiders own 0.24% 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.