Applied Materials, Inc. (NASDAQ:AMAT) Shares Sold by Primecap Management Co. CA

Primecap Management Co. CA decreased its stake in shares of Applied Materials, Inc. (NASDAQ:AMAT - Free Report) by 5.3% during the fourth quarter, according to the company in its most recent disclosure with the SEC. The institutional investor owned 2,596,280 shares of the manufacturing equipment provider's stock after selling 146,003 shares during the quarter. Primecap Management Co. CA owned about 0.32% of Applied Materials worth $422,233,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds also recently added to or reduced their stakes in AMAT. EdgePoint Investment Group Inc. boosted its position in shares of Applied Materials by 341.0% during the 3rd quarter. EdgePoint Investment Group Inc. now owns 2,857,155 shares of the manufacturing equipment provider's stock valued at $577,288,000 after acquiring an additional 2,209,218 shares during the last quarter. Janus Henderson Group PLC boosted its holdings in Applied Materials by 67.8% in the 3rd quarter. Janus Henderson Group PLC now owns 4,663,133 shares of the manufacturing equipment provider's stock valued at $942,187,000 after purchasing an additional 1,884,153 shares during the last quarter. Raymond James Financial Inc. purchased a new stake in shares of Applied Materials in the 4th quarter valued at approximately $182,962,000. Alecta Tjanstepension Omsesidigt acquired a new stake in shares of Applied Materials during the 4th quarter worth approximately $157,426,000. Finally, Flossbach Von Storch SE raised its position in shares of Applied Materials by 126.6% during the 4th quarter. Flossbach Von Storch SE now owns 1,600,078 shares of the manufacturing equipment provider's stock valued at $260,221,000 after buying an additional 893,995 shares during the period. Institutional investors and hedge funds own 80.56% of the company's stock.

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Analysts Set New Price Targets

Several research firms have issued reports on AMAT. The Goldman Sachs Group cut their target price on Applied Materials from $230.00 to $202.00 and set a "buy" rating for the company in a research note on Friday, January 10th. Edward Jones upgraded shares of Applied Materials from a "hold" rating to a "buy" rating in a report on Wednesday, March 12th. Barclays lowered their target price on shares of Applied Materials from $200.00 to $190.00 and set an "equal weight" rating for the company in a research note on Friday, February 14th. KeyCorp upgraded shares of Applied Materials from a "sector weight" rating to an "overweight" rating and set a $225.00 price target for the company in a research report on Friday, January 17th. Finally, Needham & Company LLC decreased their price objective on shares of Applied Materials from $200.00 to $195.00 and set a "buy" rating on the stock in a report on Friday, February 14th. One analyst has rated the stock with a sell rating, seven have issued a hold rating and sixteen have assigned a buy rating to the company. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $215.38.

Insider Transactions at Applied Materials

In related news, CAO Adam Sanders sold 271 shares of the firm's stock in a transaction that occurred on Monday, February 24th. The stock was sold at an average price of $172.72, for a total transaction of $46,807.12. Following the transaction, the chief accounting officer now owns 6,479 shares in the company, valued at $1,119,052.88. This trade represents a 4.01 % decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Insiders own 0.24% of the company's stock.

Applied Materials Stock Down 1.5 %

Shares of AMAT traded down $2.26 during mid-day trading on Friday, reaching $152.12. The company's stock had a trading volume of 15,887,839 shares, compared to its average volume of 5,884,171. The company's 50 day moving average is $170.71 and its 200 day moving average is $178.24. The stock has a market cap of $123.59 billion, a PE ratio of 19.88, a price-to-earnings-growth ratio of 1.81 and a beta of 1.62. Applied Materials, Inc. has a 12-month low of $145.37 and a 12-month high of $255.89. The company has a debt-to-equity ratio of 0.29, a current ratio of 2.67 and a quick ratio of 1.96.

Applied Materials (NASDAQ:AMAT - Get Free Report) last released its quarterly earnings data on Thursday, February 13th. The manufacturing equipment provider reported $2.38 earnings per share for the quarter, topping analysts' consensus estimates of $2.28 by $0.10. Applied Materials had a net margin of 22.95% and a return on equity of 39.50%. Equities analysts anticipate that Applied Materials, Inc. will post 9.38 EPS for the current fiscal year.

Applied Materials Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, June 12th. Shareholders of record on Thursday, May 22nd will be issued a dividend of $0.46 per share. 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. This represents a $1.84 annualized dividend and a dividend yield of 1.21%. Applied Materials's dividend payout ratio (DPR) is presently 24.05%.

Applied Materials declared that its board has approved a share repurchase plan on Monday, March 10th that allows the company to repurchase $10.00 billion in outstanding shares. This repurchase authorization allows the manufacturing equipment provider to repurchase up to 8.2% of its stock through open market purchases. Stock repurchase plans are usually an indication that the company's board believes its stock is undervalued.

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.