Stock Repurchase Program Initiated by Applied Materials (NASDAQ:AMAT)

Applied Materials (NASDAQ:AMAT - Get Free Report) declared that its board has authorized a stock buyback plan on Monday, March 10th, RTT News reports. The company plans to buyback $10.00 billion in outstanding shares. This buyback authorization authorizes the manufacturing equipment provider to reacquire up to 8.2% of its shares through open market purchases. Shares buyback plans are often an indication that the company's board believes its stock is undervalued.

Applied Materials Stock Performance

Shares of Applied Materials stock traded up $2.30 during trading on Wednesday, hitting $149.29. 5,618,767 shares of the company's stock were exchanged, compared to its average volume of 6,926,526. The business has a 50-day simple moving average of $173.37 and a 200-day simple moving average of $180.06. The stock has a market capitalization of $121.29 billion, a price-to-earnings ratio of 19.52, a PEG ratio of 1.81 and a beta of 1.62. The company has a debt-to-equity ratio of 0.29, a quick ratio of 1.96 and a current ratio of 2.67. Applied Materials has a 52-week low of $145.37 and a 52-week high of $255.89.

Applied Materials (NASDAQ:AMAT - Get Free Report) last announced its quarterly earnings results on Thursday, February 13th. The manufacturing equipment provider reported $2.38 earnings per share (EPS) 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%. On average, research analysts forecast that Applied Materials will post 9.38 EPS for the current year.

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Applied Materials Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, June 12th. Investors of record on Thursday, May 22nd will be issued a $0.46 dividend. This is a boost 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 dividend on an annualized basis and a yield of 1.23%. Applied Materials's dividend payout ratio is presently 20.92%.

Analyst Upgrades and Downgrades

Several research analysts have issued reports on the company. TD Cowen dropped their target price on Applied Materials from $250.00 to $230.00 and set a "buy" rating for the company in a research report on Friday, November 15th. Citigroup lifted their price target on shares of Applied Materials from $194.00 to $202.00 and gave the company a "buy" rating in a research note on Tuesday, February 18th. Susquehanna lifted their price objective on Applied Materials from $155.00 to $165.00 and gave the company a "neutral" rating in a report on Wednesday, January 22nd. Edward Jones raised shares of Applied Materials from a "hold" rating to a "buy" rating in a research note on Wednesday. Finally, Barclays dropped their target price on Applied Materials from $200.00 to $190.00 and set an "equal weight" rating on the stock in a research report on Friday, February 14th. One equities research analyst has rated the stock with a sell rating, seven have assigned a hold rating and sixteen have given a buy rating to the stock. According to data from MarketBeat, Applied Materials currently has an average rating of "Moderate Buy" and a consensus target price of $215.38.

Insiders Place Their Bets

In related news, CAO Adam Sanders sold 271 shares of the firm's stock in a transaction dated Monday, February 24th. The shares were sold at an average price of $172.72, for a total value of $46,807.12. Following the transaction, the chief accounting officer now directly owns 6,479 shares of the company's stock, valued at approximately $1,119,052.88. This trade represents a 4.01 % decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. 0.24% of the stock is currently owned by company insiders.

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.