Applied Materials (NASDAQ:AMAT) Authorizes Stock Repurchase Plan

Applied Materials (NASDAQ:AMAT) announced that its Board of Directors has approved a stock buyback program on Monday, March 10th, RTT News reports. The company plans to buyback $10.00 billion in outstanding shares. This buyback authorization allows the manufacturing equipment provider to buy up to 8.2% of its shares through open market purchases. Shares buyback programs are often a sign that the company’s management believes its stock is undervalued.

Applied Materials Stock Performance

Applied Materials stock traded down $5.69 during midday trading on Monday, reaching $149.99. 7,996,066 shares of the company’s stock were exchanged, compared to its average volume of 5,864,048. Applied Materials has a 52 week low of $147.96 and a 52 week high of $255.89. The company has a debt-to-equity ratio of 0.29, a quick ratio of 1.96 and a current ratio of 2.67. The firm has a market cap of $121.86 billion, a price-to-earnings ratio of 19.61, a P/E/G ratio of 1.81 and a beta of 1.62. The stock’s 50-day simple moving average is $173.69 and its 200 day simple moving average is $180.46.

Applied Materials (NASDAQ:AMAT) last posted its quarterly earnings results on Thursday, February 13th. The manufacturing equipment provider reported $2.38 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%. On average, analysts expect that Applied Materials will post 9.38 earnings per share for the current fiscal 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 issued a dividend of $0.46 per share. This represents a $1.84 dividend on an annualized basis and a yield of 1.23%. This is a boost from Applied Materials’s previous quarterly dividend of $0.40. Applied Materials’s dividend payout ratio (DPR) is presently 20.92%.

Wall Street Analysts Forecast Growth

Several analysts recently commented on AMAT shares. Susquehanna raised 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. Mizuho dropped their price objective on Applied Materials from $220.00 to $210.00 and set an “outperform” rating on the stock in a research note on Friday, January 10th. Bank of America dropped their price objective on Applied Materials from $220.00 to $210.00 and set a “buy” rating on the stock in a research note on Friday, November 15th. Evercore ISI lowered their target price on Applied Materials from $260.00 to $250.00 and set an “outperform” rating for the company in a report on Friday, November 15th. Finally, Wells Fargo & Company lowered their target price on Applied Materials from $210.00 to $200.00 and set an “overweight” rating for the company in a report on Monday, January 13th. One research analyst has rated the stock with a sell rating, seven have issued a hold rating and fifteen have assigned a buy rating to the stock. According to data from MarketBeat, Applied Materials currently has an average rating of “Moderate Buy” and an average price target of $215.38.

Insider Buying and Selling

In related news, CAO Adam Sanders sold 271 shares of Applied Materials stock in a transaction dated Monday, February 24th. The stock was sold at an average price of $172.72, for a total transaction of $46,807.12. Following the completion of the transaction, the chief accounting officer now owns 6,479 shares in the company, valued at approximately $1,119,052.88. This trade represents a 4.01 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. 0.24% of the stock is currently owned by corporate insiders.

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.