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

Shares of Applied Materials, Inc. (NASDAQ:AMAT) have received an average rating of “Moderate Buy” from the twenty-three brokerages that are covering the stock, MarketBeat Ratings reports. One investment analyst has rated the stock with a sell rating, five have given a hold rating and seventeen have issued a buy rating on the company. The average 1 year target price among analysts that have issued a report on the stock in the last year is $214.67.

A number of research firms recently issued reports on AMAT. Citigroup boosted their target price on shares of Applied Materials from $194.00 to $202.00 and gave the company a “buy” rating in a report on Tuesday, February 18th. Jefferies Financial Group raised shares of Applied Materials from a “hold” rating to a “buy” rating and set a $195.00 price objective for the company in a research note on Friday, March 28th. The Goldman Sachs Group dropped their price objective on Applied Materials from $230.00 to $202.00 and set a “buy” rating for the company in a report on Friday, January 10th. Wells Fargo & Company reduced their target price on Applied Materials from $210.00 to $200.00 and set an “overweight” rating on the stock in a report on Monday, January 13th. Finally, Edward Jones upgraded Applied Materials from a “hold” rating to a “buy” rating in a research note on Wednesday, March 12th.

Applied Materials Stock Performance

NASDAQ:AMAT opened at $126.95 on Monday. The company has a debt-to-equity ratio of 0.29, a current ratio of 2.67 and a quick ratio of 1.96. The firm has a market cap of $103.14 billion, a PE ratio of 16.59, a P/E/G ratio of 1.81 and a beta of 1.61. The firm has a 50 day simple moving average of $162.19 and a 200-day simple moving average of $175.37. Applied Materials has a 1-year low of $123.94 and a 1-year high of $255.89.

Applied Materials (NASDAQ:AMAT) last announced its quarterly earnings data on Thursday, February 13th. The manufacturing equipment provider reported $2.38 EPS for the quarter, beating 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, equities analysts expect that Applied Materials will post 9.38 EPS for the current year.

Applied Materials Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, June 12th. Shareholders of record on Thursday, May 22nd will be given a $0.46 dividend. This represents a $1.84 dividend on an annualized basis and a dividend yield of 1.45%. This is a positive change from Applied Materials’s previous quarterly dividend of $0.40. The ex-dividend date of this dividend is Thursday, May 22nd. Applied Materials’s dividend payout ratio is presently 24.05%.

Applied Materials announced that its Board of Directors has initiated a share repurchase program on Monday, March 10th that authorizes the company to repurchase $10.00 billion in shares. This repurchase authorization authorizes the manufacturing equipment provider to buy up to 8.2% of its stock through open market purchases. Stock repurchase programs are typically an indication that the company’s management believes its shares are undervalued.

Insider Activity at Applied Materials

In related news, CAO Adam Sanders sold 450 shares of the company’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 transaction of $65,173.50. Following the sale, the chief accounting officer now directly owns 6,077 shares of the company’s stock, valued at approximately $880,131.91. This represents a 6.89 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. 0.24% of the stock is currently owned by corporate insiders.

Institutional Trading of Applied Materials

Several institutional investors have recently added to or reduced their stakes in the business. Nordea Investment Management AB lifted its holdings in Applied Materials by 8.6% in the fourth quarter. Nordea Investment Management AB now owns 2,077,107 shares of the manufacturing equipment provider’s stock worth $340,895,000 after acquiring an additional 164,085 shares during the last quarter. Pensionfund Sabic grew its stake in Applied Materials by 38.9% during the 4th quarter. Pensionfund Sabic now owns 13,200 shares of the manufacturing equipment provider’s stock worth $2,147,000 after buying an additional 3,700 shares during the last quarter. Brookstone Capital Management lifted its stake in Applied Materials by 59.1% in the fourth quarter. Brookstone Capital Management now owns 45,378 shares of the manufacturing equipment provider’s stock valued at $7,380,000 after buying an additional 16,851 shares during the last quarter. Advisors Management Group Inc. ADV acquired a new position in shares of Applied Materials during the fourth quarter valued at $339,000. Finally, Rheos Capital Works Inc. grew its position in shares of Applied Materials by 2.7% during the fourth quarter. Rheos Capital Works Inc. now owns 170,100 shares of the manufacturing equipment provider’s stock worth $27,663,000 after acquiring an additional 4,500 shares during the last quarter. Institutional investors own 80.56% of the company’s stock.

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.