GAMMA Investing LLC Increases Stock Position in Applied Materials, Inc. (NASDAQ:AMAT)

GAMMA Investing LLC lifted its stake in shares of Applied Materials, Inc. (NASDAQ:AMAT - Free Report) by 18,402.1% during the first quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 1,824,304 shares of the manufacturing equipment provider's stock after acquiring an additional 1,814,444 shares during the quarter. Applied Materials comprises about 0.5% of GAMMA Investing LLC's investment portfolio, making the stock its 28th biggest holding. GAMMA Investing LLC owned 0.22% of Applied Materials worth $2,647,430,000 at the end of the most recent reporting period.

A number of other hedge funds have also made changes to their positions in the stock. FPC Investment Advisory Inc. acquired a new stake in shares of Applied Materials in the 4th quarter valued at $28,000. Crews Bank & Trust bought a new position in Applied Materials in the 4th quarter worth $28,000. YANKCOM Partnership bought a new position in shares of Applied Materials during the 4th quarter worth about $32,000. Mascagni Wealth Management Inc. bought a new position in shares of Applied Materials during the 4th quarter worth about $44,000. Finally, Atala Financial Inc bought a new position in shares of Applied Materials during the 4th quarter worth about $45,000. Institutional investors and hedge funds own 80.56% of the company's stock.

Insider Activity

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

Analyst Ratings Changes

AMAT has been the topic of a number of analyst reports. JPMorgan Chase & Co. lowered their target price on shares of Applied Materials from $240.00 to $210.00 and set an "overweight" rating on the stock in a research note on Friday, May 16th. Wells Fargo & Company reiterated a "mixed" rating on shares of Applied Materials in a research report on Friday, May 16th. Stifel Nicolaus dropped their price target on shares of Applied Materials from $235.00 to $195.00 and set a "buy" rating for the company in a research note on Tuesday, April 15th. Mizuho dropped their price target 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. Finally, Edward Jones upgraded shares of Applied Materials from a "hold" rating to a "buy" rating in a report on Wednesday, March 12th. One analyst has rated the stock with a sell rating, six have given a hold rating and sixteen have issued a buy rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $199.48.

Applied Materials Price Performance

Shares of NASDAQ:AMAT traded up $3.43 during midday trading on Tuesday, hitting $160.70. The stock had a trading volume of 1,579,290 shares, compared to its average volume of 6,909,917. The company's 50-day moving average price is $150.80 and its 200-day moving average price is $163.33. The company has a market capitalization of $128.96 billion, a P/E ratio of 21.01, a price-to-earnings-growth ratio of 1.81 and a beta of 1.71. The company has a quick ratio of 1.96, a current ratio of 2.67 and a debt-to-equity ratio of 0.29. Applied Materials, Inc. has a fifty-two week low of $123.74 and a fifty-two week high of $255.89.

Applied Materials (NASDAQ:AMAT - Get Free Report) last issued its quarterly earnings data on Thursday, May 15th. The manufacturing equipment provider reported $2.39 earnings per share for the quarter, topping analysts' consensus estimates of $2.31 by $0.08. The business 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 39.50% and a net margin of 22.95%. Applied Materials's quarterly revenue was up 6.8% compared to the same quarter last year. During the same quarter in the previous year, the company posted $2.09 EPS. As a group, equities research analysts predict that Applied Materials, Inc. will post 9.38 EPS for the current fiscal year.

Applied Materials declared that its board has initiated a stock buyback plan on Monday, March 10th that allows the company to buyback $10.00 billion in shares. This buyback authorization allows the manufacturing equipment provider to purchase up to 8.2% of its stock through open market purchases. Stock buyback plans are typically a sign that the company's board believes its shares are undervalued.

Applied Materials Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, June 12th. Stockholders of record on Thursday, May 22nd will be paid a $0.46 dividend. This represents a $1.84 dividend on an annualized basis and a dividend yield of 1.14%. This is an increase 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 currently 22.38%.

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.