Applied Materials, Inc. (NASDAQ:AMAT) Given Average Recommendation of "Moderate Buy" by Brokerages

Applied Materials, Inc. (NASDAQ:AMAT - Get Free Report) has been given an average rating of "Moderate Buy" by the twenty-three brokerages that are currently covering the firm, Marketbeat Ratings reports. One research analyst has rated the stock with a sell recommendation, five have issued a hold recommendation and seventeen have assigned a buy recommendation to the company. The average 1 year target price among brokers that have updated their coverage on the stock in the last year is $208.86.

A number of equities research analysts recently weighed in on the stock. Edward Jones raised shares of Applied Materials from a "hold" rating to a "buy" rating in a research report on Wednesday, March 12th. The Goldman Sachs Group reduced their target price on Applied Materials from $230.00 to $202.00 and set a "buy" rating for the company in a report on Friday, January 10th. Stifel Nicolaus dropped their price target on Applied Materials from $235.00 to $195.00 and set a "buy" rating on the stock in a research note on Tuesday, April 15th. Jefferies Financial Group upgraded 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. Finally, Citigroup lowered their target price on shares of Applied Materials from $202.00 to $170.00 and set a "buy" rating on the stock in a research report on Friday, April 11th.

Applied Materials Stock Up 0.9 %

NASDAQ AMAT traded up $1.38 during trading on Friday, reaching $151.55. 4,804,419 shares of the company's stock were exchanged, compared to its average volume of 6,683,281. Applied Materials has a 1 year low of $123.74 and a 1 year high of $255.89. The stock has a market cap of $123.13 billion, a P/E ratio of 19.81, a price-to-earnings-growth ratio of 1.81 and a beta of 1.61. 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 company has a 50 day moving average price of $149.54 and a two-hundred day moving average price of $168.57.

Applied Materials (NASDAQ:AMAT - Get Free Report) last posted its earnings results on Thursday, February 13th. The manufacturing equipment provider reported $2.38 earnings per share for the quarter, topping the consensus estimate 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 research analysts anticipate that Applied Materials will post 9.38 EPS for the current fiscal year.

Applied Materials declared that its Board of Directors has initiated a share buyback plan on Monday, March 10th that authorizes the company to repurchase $10.00 billion in shares. This repurchase authorization authorizes the manufacturing equipment provider to repurchase up to 8.2% of its shares through open market purchases. Shares repurchase plans are typically an indication that the company's management believes its stock is undervalued.

Applied Materials Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, June 12th. Investors of record on Thursday, May 22nd will be paid a $0.46 dividend. This is a boost from Applied Materials's previous quarterly dividend of $0.40. The ex-dividend date is Thursday, May 22nd. This represents a $1.84 annualized dividend and a dividend yield of 1.21%. Applied Materials's dividend payout ratio (DPR) is 24.05%.

Insider Activity at Applied Materials

In other Applied Materials news, CAO Adam Sanders sold 450 shares of the firm's stock in a transaction dated Tuesday, April 1st. The shares were sold at an average price of $144.83, for a total transaction of $65,173.50. Following the completion of the transaction, the chief accounting officer now directly owns 6,077 shares in the company, valued at approximately $880,131.91. This trade represents a 6.89 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CEO Gary E. Dickerson purchased 50,000 shares of Applied Materials stock in a transaction on Thursday, April 3rd. The stock was acquired at an average cost of $137.30 per share, for a total transaction of $6,865,000.00. Following the acquisition, the chief executive officer now directly owns 1,716,058 shares of the company's stock, valued at approximately $235,614,763.40. This represents a 3.00 % increase in their ownership of the stock. The disclosure for this purchase can be found here. 0.24% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. Mather Group LLC. raised its holdings in shares of Applied Materials by 88.4% in the first quarter. Mather Group LLC. now owns 19,413 shares of the manufacturing equipment provider's stock worth $2,817,000 after acquiring an additional 9,108 shares during the last quarter. Alta Advisers Ltd raised its stake in Applied Materials by 47.5% in the 1st quarter. Alta Advisers Ltd now owns 4,036 shares of the manufacturing equipment provider's stock valued at $586,000 after purchasing an additional 1,300 shares during the last quarter. Smallwood Wealth Investment Management LLC purchased a new position in Applied Materials in the 1st quarter valued at about $29,000. Advisors Management Group Inc. ADV boosted its stake in shares of Applied Materials by 372.0% during the 1st quarter. Advisors Management Group Inc. ADV now owns 9,826 shares of the manufacturing equipment provider's stock worth $1,426,000 after purchasing an additional 7,744 shares during the last quarter. Finally, Smith Salley Wealth Management boosted its stake in shares of Applied Materials by 16.5% during the 1st quarter. Smith Salley Wealth Management now owns 1,554 shares of the manufacturing equipment provider's stock worth $226,000 after purchasing an additional 220 shares during the last quarter. 80.56% of the stock is currently owned by institutional investors and hedge funds.

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.