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

Shares of Applied Materials, Inc. (NASDAQ:AMAT) have been given a consensus recommendation of “Moderate Buy” by the twenty-two analysts that are currently covering the firm, Marketbeat reports. One equities research analyst has rated the stock with a sell rating, six have issued a hold rating and fifteen have assigned a buy rating to the company. The average 12 month price target among brokerages that have covered the stock in the last year is $215.38.

A number of brokerages have issued reports on AMAT. KeyCorp upgraded Applied Materials from a “sector weight” rating to an “overweight” rating and set a $225.00 price target for the company in a research report on Friday, January 17th. The Goldman Sachs Group reduced their price target on Applied Materials from $230.00 to $202.00 and set a “buy” rating for the company in a research report on Friday, January 10th. Morgan Stanley reissued an “underweight” rating and issued a $164.00 price objective (down previously from $179.00) on shares of Applied Materials in a research note on Thursday, December 5th. Evercore ISI dropped their price objective on Applied Materials from $260.00 to $250.00 and set an “outperform” rating on the stock in a research note on Friday, November 15th. Finally, Susquehanna boosted their price objective on Applied Materials from $155.00 to $165.00 and gave the stock a “neutral” rating in a research note on Wednesday, January 22nd.

Applied Materials Trading Down 3.7 %

Shares of AMAT stock opened at $149.99 on Thursday. 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 1 year low of $147.88 and a 1 year high of $255.89. The stock has a fifty day moving average of $173.69 and a two-hundred day moving average of $180.46. The firm has a market capitalization of $121.86 billion, a PE ratio of 19.61, a price-to-earnings-growth ratio of 1.81 and a beta of 1.62.

Applied Materials (NASDAQ:AMAT) last announced its quarterly earnings results on Thursday, February 13th. The manufacturing equipment provider reported $2.38 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.28 by $0.10. Applied Materials had a return on equity of 39.50% and a net margin of 22.95%. As a group, research analysts expect that Applied Materials will post 9.38 EPS for the current year.

Applied Materials Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, June 12th. Investors of record on Thursday, May 22nd will be given a dividend of $0.46 per share. This is a positive change from Applied Materials’s previous quarterly dividend of $0.40. This represents a $1.84 dividend on an annualized basis and a yield of 1.23%. Applied Materials’s dividend payout ratio is 20.92%.

Applied Materials announced that its board has approved a share buyback program on Monday, March 10th that allows the company to buyback $10.00 billion in outstanding shares. This buyback authorization allows the manufacturing equipment provider to repurchase up to 8.2% of its stock through open market purchases. Stock buyback programs are generally an indication that the company’s board of directors believes its shares are undervalued.

Insider Buying and Selling at Applied Materials

In other news, CAO Adam Sanders sold 271 shares of the firm’s stock in a transaction on Monday, February 24th. The stock was sold at an average price of $172.72, for a total value of $46,807.12. Following the transaction, the chief accounting officer now directly owns 6,479 shares in the company, valued at $1,119,052.88. This trade represents a 4.01 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Corporate insiders own 0.24% of the company’s stock.

Institutional Trading of Applied Materials

Hedge funds have recently added to or reduced their stakes in the business. Nordea Investment Management AB grew its holdings in shares of Applied Materials by 8.6% in the 4th quarter. Nordea Investment Management AB now owns 2,077,107 shares of the manufacturing equipment provider’s stock valued at $340,895,000 after acquiring an additional 164,085 shares in the last quarter. WoodTrust Financial Corp grew its holdings in shares of Applied Materials by 47.0% in the 3rd quarter. WoodTrust Financial Corp now owns 67,915 shares of the manufacturing equipment provider’s stock valued at $13,722,000 after acquiring an additional 21,699 shares in the last quarter. Victory Capital Management Inc. grew its holdings in shares of Applied Materials by 1.4% in the 3rd quarter. Victory Capital Management Inc. now owns 1,139,114 shares of the manufacturing equipment provider’s stock valued at $230,158,000 after acquiring an additional 15,183 shares in the last quarter. The Manufacturers Life Insurance Company grew its holdings in shares of Applied Materials by 62.6% in the 3rd quarter. The Manufacturers Life Insurance Company now owns 1,698,282 shares of the manufacturing equipment provider’s stock valued at $343,138,000 after acquiring an additional 653,739 shares in the last quarter. Finally, Pensionfund Sabic grew its holdings in shares of Applied Materials by 38.9% in the 4th quarter. Pensionfund Sabic now owns 13,200 shares of the manufacturing equipment provider’s stock valued at $2,147,000 after acquiring an additional 3,700 shares in the last quarter. Institutional investors and hedge funds 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.