Morgan Stanley Increases Applied Materials (NASDAQ:AMAT) Price Target to $169.00

Applied Materials (NASDAQ:AMAT - Get Free Report) had its target price raised by equities researchers at Morgan Stanley from $158.00 to $169.00 in a research report issued to clients and investors on Tuesday,Benzinga reports. The brokerage presently has an "equal weight" rating on the manufacturing equipment provider's stock. Morgan Stanley's target price indicates a potential downside of 11.06% from the stock's previous close.

Several other research analysts have also commented on the company. Raymond James Financial reissued an "outperform" rating and issued a $200.00 price objective (down from $225.00) on shares of Applied Materials in a research report on Friday, May 16th. Needham & Company LLC reissued a "buy" rating and set a $195.00 price target on shares of Applied Materials in a research report on Friday, May 16th. Mizuho decreased their price target on Applied Materials from $205.00 to $195.00 and set an "outperform" rating for the company in a report on Friday, May 16th. Wells Fargo & Company reiterated a "mixed" rating on shares of Applied Materials in a research note on Friday, May 16th. Finally, JPMorgan Chase & Co. decreased their target price on shares of Applied Materials from $240.00 to $210.00 and set an "overweight" rating for the company in a research note on Friday, May 16th. Seven investment analysts have rated the stock with a hold rating and sixteen have assigned a buy rating to the stock. According to MarketBeat, Applied Materials presently has an average rating of "Moderate Buy" and an average target price of $200.76.

Applied Materials Trading Up 3.4%

Shares of NASDAQ AMAT traded up $6.25 during trading on Tuesday, hitting $190.01. 8,785,028 shares of the company traded hands, compared to its average volume of 7,060,544. The firm has a market capitalization of $152.48 billion, a P/E ratio of 23.12, a P/E/G ratio of 2.04 and a beta of 1.69. The company has a quick ratio of 1.76, a current ratio of 2.46 and a debt-to-equity ratio of 0.29. The company has a 50-day moving average price of $164.94 and a 200-day moving average price of $163.46. Applied Materials has a 1 year low of $123.74 and a 1 year high of $255.89.

Applied Materials (NASDAQ:AMAT - Get Free Report) last announced its quarterly earnings results on Thursday, May 15th. The manufacturing equipment provider reported $2.39 EPS for the quarter, topping the consensus estimate of $2.31 by $0.08. The company had revenue of $7.10 billion during 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%. The firm's revenue was up 6.8% on a year-over-year basis. During the same period in the prior year, the firm posted $2.09 earnings per share. On average, equities analysts predict that Applied Materials will post 9.38 EPS for the current year.

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

Insider Buying and Selling

In related news, CAO Adam Sanders sold 562 shares of the business's 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 transaction, the chief accounting officer owned 5,300 shares in the company, valued at $946,580. The trade was a 9.59% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CEO Gary E. Dickerson bought 50,000 shares of the business's stock in a transaction on Thursday, April 3rd. The stock was bought 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 directly owned 1,716,058 shares of the company's stock, valued at $235,614,763.40. The trade was a 3.00% increase in their position. The disclosure for this purchase can be found here. Insiders own 0.24% of the company's stock.

Hedge Funds Weigh In On Applied Materials

Several hedge funds and other institutional investors have recently made changes to their positions in the business. LaFleur & Godfrey LLC raised its stake in shares of Applied Materials by 17.2% during the fourth quarter. LaFleur & Godfrey LLC now owns 17,246 shares of the manufacturing equipment provider's stock valued at $2,805,000 after purchasing an additional 2,536 shares in the last quarter. Eagle Capital Management LLC increased its stake in Applied Materials by 1.8% during the 4th quarter. Eagle Capital Management LLC now owns 16,004 shares of the manufacturing equipment provider's stock valued at $2,603,000 after buying an additional 290 shares during the period. Brighton Jones LLC raised its position in shares of Applied Materials by 28.0% during the 4th quarter. Brighton Jones LLC now owns 12,674 shares of the manufacturing equipment provider's stock worth $2,061,000 after buying an additional 2,771 shares in the last quarter. SRS Capital Advisors Inc. lifted its stake in shares of Applied Materials by 609.0% in the 4th quarter. SRS Capital Advisors Inc. now owns 2,134 shares of the manufacturing equipment provider's stock worth $347,000 after acquiring an additional 1,833 shares during the period. Finally, Jones Financial Companies Lllp boosted its holdings in shares of Applied Materials by 59.6% in the fourth quarter. Jones Financial Companies Lllp now owns 21,267 shares of the manufacturing equipment provider's stock valued at $3,459,000 after acquiring an additional 7,938 shares in the last quarter. 80.56% of the stock is currently owned by institutional investors and hedge funds.

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.