Brokerages Set Applied Materials, Inc. (NASDAQ:AMAT) Target Price at $199.29

Shares of Applied Materials, Inc. (NASDAQ:AMAT) have been assigned an average recommendation of “Moderate Buy” from the twenty-two brokerages that are presently covering the stock, MarketBeat Ratings reports. Six analysts have rated the stock with a hold recommendation and sixteen have assigned a buy recommendation to the company. The average 1-year target price among brokerages that have covered the stock in the last year is $199.29.

Several brokerages have weighed in on AMAT. Morgan Stanley raised Applied Materials from an “underweight” rating to an “equal weight” rating and reduced their price objective for the stock from $162.00 to $158.00 in a research note on Friday, June 6th. Bank of America dropped their target price on Applied Materials from $205.00 to $190.00 and set a “buy” rating for the company in a report on Wednesday, April 16th. Barclays decreased their price target on Applied Materials from $190.00 to $160.00 and set an “equal weight” rating on the stock in a report on Tuesday, April 22nd. B. Riley lowered their price target on Applied Materials from $250.00 to $215.00 and set a “buy” rating for the company in a research report on Monday, May 12th. Finally, Jefferies Financial Group upgraded shares of Applied Materials from a “hold” rating to a “buy” rating and set a $195.00 price objective on the stock in a research report on Friday, March 28th.

Applied Materials Trading Down 0.7%

AMAT stock opened at $172.84 on Friday. The firm has a fifty day moving average price of $157.92 and a 200 day moving average price of $163.24. Applied Materials has a fifty-two week low of $123.74 and a fifty-two week high of $255.89. The firm has a market cap of $138.70 billion, a PE ratio of 21.03, a price-to-earnings-growth ratio of 1.94 and a beta of 1.67. The company has a debt-to-equity ratio of 0.29, a quick ratio of 1.76 and a current ratio of 2.46.

Applied Materials (NASDAQ:AMAT) last issued its quarterly earnings data on Thursday, May 15th. The manufacturing equipment provider reported $2.39 EPS for the quarter, topping analysts’ consensus estimates of $2.31 by $0.08. Applied Materials had a net margin of 24.06% and a return on equity of 40.15%. The business had revenue of $7.10 billion during the quarter, compared to analysts’ expectations of $7.12 billion. During the same period last year, the company posted $2.09 EPS. The business’s revenue was up 6.8% on a year-over-year basis. Sell-side analysts anticipate that Applied Materials will post 9.38 earnings per share for the current fiscal year.

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

Applied Materials Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, September 11th. Shareholders of record on Thursday, August 21st will be given a $0.46 dividend. The ex-dividend date is Thursday, August 21st. This represents a $1.84 annualized dividend and a yield of 1.06%. Applied Materials’s dividend payout ratio (DPR) is 22.38%.

Insider Activity

In other news, CEO Gary E. Dickerson purchased 50,000 shares of the company’s stock in a transaction dated Thursday, April 3rd. The shares were acquired at an average price of $137.30 per share, with a total value of $6,865,000.00. Following the transaction, the chief executive officer now 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 transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CAO Adam Sanders sold 450 shares of Applied Materials stock in a transaction dated Tuesday, April 1st. The shares were sold at an average price of $144.83, for a total value of $65,173.50. Following the completion of the sale, the chief accounting officer now owns 6,077 shares of the company’s stock, valued at $880,131.91. The trade was a 6.89% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders own 0.24% of the company’s stock.

Institutional Investors Weigh In On Applied Materials

Several hedge funds have recently modified their holdings of the business. Belpointe Asset Management LLC lifted its holdings in Applied Materials by 1.7% during the fourth quarter. Belpointe Asset Management LLC now owns 3,734 shares of the manufacturing equipment provider’s stock worth $607,000 after buying an additional 62 shares during the period. Valmark Advisers Inc. raised its position in shares of Applied Materials by 3.5% in the 4th quarter. Valmark Advisers Inc. now owns 1,862 shares of the manufacturing equipment provider’s stock worth $303,000 after acquiring an additional 63 shares in the last quarter. Hills Bank & Trust Co lifted its stake in shares of Applied Materials by 6.6% during the 4th quarter. Hills Bank & Trust Co now owns 1,061 shares of the manufacturing equipment provider’s stock worth $173,000 after purchasing an additional 66 shares during the last quarter. Old Port Advisors boosted its position in Applied Materials by 2.5% during the first quarter. Old Port Advisors now owns 2,730 shares of the manufacturing equipment provider’s stock valued at $396,000 after purchasing an additional 66 shares in the last quarter. Finally, Kovack Advisors Inc. grew its stake in Applied Materials by 2.3% in the fourth quarter. Kovack Advisors Inc. now owns 3,062 shares of the manufacturing equipment provider’s stock valued at $498,000 after purchasing an additional 68 shares during the last quarter. Hedge funds and other institutional investors 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.