Applied Materials (NASDAQ:AMAT) Shares Gap Down After Analyst Downgrade

Shares of Applied Materials, Inc. (NASDAQ:AMAT - Get Free Report) gapped down prior to trading on Friday after Needham & Company LLC lowered their price target on the stock from $200.00 to $195.00. The stock had previously closed at $184.27, but opened at $174.84. Needham & Company LLC currently has a buy rating on the stock. Applied Materials shares last traded at $174.20, with a volume of 2,941,577 shares trading hands.

Several other equities analysts have also recently issued reports on the stock. Susquehanna boosted their target price on shares of Applied Materials from $155.00 to $165.00 and gave the company a "neutral" rating in a research note on Wednesday, January 22nd. Wells Fargo & Company lowered their target price on shares of Applied Materials from $210.00 to $200.00 and set an "overweight" rating on the stock in a research note on Monday, January 13th. Deutsche Bank Aktiengesellschaft cut their price target on Applied Materials from $220.00 to $200.00 and set a "hold" rating for the company in a research note on Friday, November 15th. Morgan Stanley reiterated an "underweight" rating and set a $164.00 price target (down previously from $179.00) on shares of Applied Materials in a research report on Thursday, December 5th. Finally, Sanford C. Bernstein cut their price objective on Applied Materials from $220.00 to $210.00 and set an "outperform" rating for the company in a research report on Friday, November 29th. One investment analyst has rated the stock with a sell rating, seven have assigned a hold rating and fifteen have given a buy rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $215.38.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of AMAT. Swedbank AB boosted its holdings in Applied Materials by 2.6% in the 3rd quarter. Swedbank AB now owns 4,244,566 shares of the manufacturing equipment provider's stock valued at $857,615,000 after purchasing an additional 108,827 shares during the last quarter. Capital Investment Advisors LLC lifted its holdings in Applied Materials by 1.5% in the third quarter. Capital Investment Advisors LLC now owns 7,892 shares of the manufacturing equipment provider's stock valued at $1,595,000 after acquiring an additional 119 shares during the last quarter. OLD National Bancorp IN grew its position in Applied Materials by 1.1% in the third quarter. OLD National Bancorp IN now owns 13,050 shares of the manufacturing equipment provider's stock worth $2,637,000 after acquiring an additional 140 shares during the period. Allspring Global Investments Holdings LLC increased its stake in Applied Materials by 9.6% during the third quarter. Allspring Global Investments Holdings LLC now owns 625,561 shares of the manufacturing equipment provider's stock worth $126,395,000 after acquiring an additional 54,581 shares during the last quarter. Finally, Narus Financial Partners LLC increased its stake in Applied Materials by 36.3% during the third quarter. Narus Financial Partners LLC now owns 1,179 shares of the manufacturing equipment provider's stock worth $238,000 after acquiring an additional 314 shares during the last quarter. Hedge funds and other institutional investors own 80.56% of the company's stock.

Applied Materials Price Performance

The company has a market cap of $139.78 billion, a PE ratio of 19.98, a P/E/G ratio of 1.86 and a beta of 1.53. The company has a quick ratio of 1.87, a current ratio of 2.51 and a debt-to-equity ratio of 0.29. The stock has a 50-day simple moving average of $175.31 and a 200 day simple moving average of $184.12.

Applied Materials (NASDAQ:AMAT - Get Free Report) last issued its quarterly earnings data on Thursday, February 13th. The manufacturing equipment provider reported $2.38 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.28 by $0.10. Applied Materials had a net margin of 26.41% and a return on equity of 39.26%. Equities analysts expect that Applied Materials, Inc. will post 9.38 EPS for the current year.

Applied Materials Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, March 13th. Investors of record on Thursday, February 20th will be given a dividend of $0.40 per share. The ex-dividend date of this dividend is Thursday, February 20th. This represents a $1.60 dividend on an annualized basis and a dividend yield of 0.93%. Applied Materials's payout ratio is currently 18.58%.

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.