Applied Materials, Inc. (NASDAQ:AMAT) Given Average Recommendation of “Moderate Buy” by Brokerages

Applied Materials, Inc. (NASDAQ:AMAT) has earned an average rating of “Moderate Buy” from the twenty-two brokerages that are currently covering the company, MarketBeat reports. One equities research analyst has rated the stock with a sell rating, five have assigned a hold rating and sixteen have issued a buy rating on the company. The average 12 month price objective among brokerages that have covered the stock in the last year is $199.48.

Several brokerages recently weighed in on AMAT. Morgan Stanley lowered their price objective on Applied Materials from $164.00 to $162.00 and set an “underweight” rating for the company in a report on Friday. Raymond James restated an “outperform” rating and issued a $200.00 target price (down from $225.00) on shares of Applied Materials in a research note on Friday. Cantor Fitzgerald decreased their target price on Applied Materials from $220.00 to $200.00 and set an “overweight” rating for the company in a research note on Monday, May 12th. Susquehanna lifted their target price on Applied Materials from $155.00 to $165.00 and gave the company a “neutral” rating in a research note on Wednesday, January 22nd. Finally, Stifel Nicolaus decreased their target price on Applied Materials from $235.00 to $195.00 and set a “buy” rating for the company in a research note on Tuesday, April 15th.

Insider Buying and Selling

In other Applied Materials news, CEO Gary E. Dickerson purchased 50,000 shares of the 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 acquisition, the chief executive officer now directly owns 1,716,058 shares of the company’s stock, valued at $235,614,763.40. This represents a 3.00% increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is available at this link. Also, CAO Adam Sanders sold 450 shares of the business’s stock in a transaction that occurred 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 transaction, the chief accounting officer now directly owns 6,077 shares in the company, valued at $880,131.91. This trade represents a 6.89% decrease in their ownership of the stock. The disclosure for this sale can be found here. Corporate insiders own 0.24% of the company’s stock.

Institutional Investors Weigh In On Applied Materials

A number of institutional investors have recently made changes to their positions in AMAT. Crews Bank & Trust purchased a new stake in shares of Applied Materials during the fourth quarter valued at $28,000. FPC Investment Advisory Inc. acquired a new position in Applied Materials in the 4th quarter worth about $28,000. Runnymede Capital Advisors Inc. increased its holdings in shares of Applied Materials by 972.2% during the 1st quarter. Runnymede Capital Advisors Inc. now owns 193 shares of the manufacturing equipment provider’s stock valued at $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 valued at approximately $29,000. Finally, Clal Insurance Enterprises Holdings Ltd boosted its stake 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 valued at $31,000 after purchasing an additional 174 shares during the period. 80.56% of the stock is currently owned by institutional investors.

Applied Materials Price Performance

Shares of NASDAQ:AMAT opened at $165.94 on Tuesday. The business’s fifty day moving average price is $149.52 and its two-hundred day moving average price is $165.12. The stock has a market cap of $134.82 billion, a PE ratio of 21.69, a price-to-earnings-growth ratio of 1.81 and a beta of 1.71. 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 has a one year low of $123.74 and a one year high of $255.89.

Applied Materials (NASDAQ:AMAT) last released its quarterly earnings data 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. Applied Materials had a return on equity of 39.50% and a net margin of 22.95%. The company had revenue of $7.10 billion for the quarter, compared to analyst estimates of $7.12 billion. During the same period last year, the company posted $2.09 earnings per share. The firm’s revenue was up 6.8% compared to the same quarter last year. On average, analysts forecast that Applied Materials will post 9.38 EPS for the current fiscal year.

Applied Materials declared that its Board of Directors has approved a stock buyback plan on Monday, March 10th that authorizes the company to repurchase $10.00 billion in outstanding shares. This repurchase authorization authorizes the manufacturing equipment provider to repurchase up to 8.2% of its stock through open market purchases. Stock repurchase plans are usually a sign that the company’s leadership believes its stock is undervalued.

Applied Materials Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, June 12th. Stockholders of record on Thursday, May 22nd will be given a dividend of $0.46 per share. This represents a $1.84 annualized dividend and a dividend yield of 1.11%. The ex-dividend date is Thursday, May 22nd. This is a boost from Applied Materials’s previous quarterly dividend of $0.40. Applied Materials’s dividend 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.