Applied Materials (NASDAQ:AMAT) Shares Gap Up – Still a Buy?

Applied Materials, Inc. (NASDAQ:AMAT)’s stock price gapped up before the market opened on Thursday . The stock had previously closed at $178.38, but opened at $185.80. Applied Materials shares last traded at $185.01, with a volume of 1,371,347 shares changing hands.

Analyst Ratings Changes

A number of research analysts recently commented on AMAT shares. The Goldman Sachs Group decreased their price target on Applied Materials from $230.00 to $202.00 and set a “buy” rating on the stock in a research report on Friday, January 10th. Evercore ISI cut their price target on shares of Applied Materials from $260.00 to $250.00 and set an “outperform” rating for the company in a report on Friday, November 15th. Stifel Nicolaus decreased their price objective on shares of Applied Materials from $270.00 to $250.00 and set a “buy” rating on the stock in a research note on Tuesday, November 12th. Deutsche Bank Aktiengesellschaft dropped their price objective on Applied Materials from $220.00 to $200.00 and set a “hold” rating for the company in a research report on Friday, November 15th. Finally, Morgan Stanley reiterated an “underweight” rating and issued a $164.00 target price (down previously from $179.00) on shares of Applied Materials in a research report on Thursday, December 5th. One equities research analyst has rated the stock with a sell rating, seven have given a hold rating and sixteen have assigned a buy rating to the company. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus target price of $217.41.

Applied Materials Trading Up 3.0 %

The firm has a 50-day moving average of $173.10 and a 200 day moving average of $191.61. The company has a market cap of $156.27 billion, a P/E ratio of 22.31, a price-to-earnings-growth ratio of 1.75 and a beta of 1.53. The company has a current ratio of 2.51, a quick ratio of 1.87 and a debt-to-equity ratio of 0.29.

Applied Materials (NASDAQ:AMAT) last released its quarterly earnings data on Thursday, November 14th. The manufacturing equipment provider reported $2.32 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.19 by $0.13. The company had revenue of $7.05 billion for the quarter, compared to analysts’ expectations of $6.96 billion. Applied Materials had a net margin of 26.41% and a return on equity of 39.26%. The business’s revenue was up 4.8% on a year-over-year basis. During the same quarter in the prior year, the firm earned $2.12 EPS. On average, analysts predict that Applied Materials, Inc. will post 9.37 earnings per share for the current fiscal year.

Applied Materials Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, March 13th. Shareholders of record on Thursday, February 20th will be issued a dividend of $0.40 per share. The ex-dividend date of this dividend is Thursday, February 20th. This represents a $1.60 annualized dividend and a yield of 0.83%. Applied Materials’s payout ratio is 18.58%.

Hedge Funds Weigh In On Applied Materials

Hedge funds have recently bought and sold shares of the company. EdgePoint Investment Group Inc. boosted its stake in shares of Applied Materials by 341.0% in the 3rd quarter. EdgePoint Investment Group Inc. now owns 2,857,155 shares of the manufacturing equipment provider’s stock worth $577,288,000 after buying an additional 2,209,218 shares during the last quarter. Janus Henderson Group PLC boosted its position in Applied Materials by 67.8% in the third quarter. Janus Henderson Group PLC now owns 4,663,133 shares of the manufacturing equipment provider’s stock worth $942,187,000 after purchasing an additional 1,884,153 shares during the last quarter. Van ECK Associates Corp increased its position in shares of Applied Materials by 29.8% during the 3rd quarter. Van ECK Associates Corp now owns 6,571,178 shares of the manufacturing equipment provider’s stock valued at $1,327,707,000 after purchasing an additional 1,509,439 shares during the last quarter. Assenagon Asset Management S.A. raised its stake in shares of Applied Materials by 262.5% during the 3rd quarter. Assenagon Asset Management S.A. now owns 1,390,501 shares of the manufacturing equipment provider’s stock worth $280,951,000 after purchasing an additional 1,006,937 shares during the period. Finally, Alkeon Capital Management LLC boosted its holdings in shares of Applied Materials by 87.7% in the 3rd quarter. Alkeon Capital Management LLC now owns 1,877,133 shares of the manufacturing equipment provider’s stock worth $379,275,000 after buying an additional 877,133 shares during the last quarter. 80.56% of the stock is owned by hedge funds and other institutional investors.

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.