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

Shares of Applied Materials, Inc. (NASDAQ:AMAT - Get Free Report) gapped down prior to trading on Wednesday after Bank of America lowered their price target on the stock from $205.00 to $190.00. The stock had previously closed at $145.45, but opened at $137.82. Bank of America currently has a buy rating on the stock. Applied Materials shares last traded at $140.92, with a volume of 1,161,760 shares.

A number of other equities research analysts also recently weighed in on AMAT. Barclays lowered their price target 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. Mizuho reduced their target price on shares of Applied Materials from $220.00 to $210.00 and set an "outperform" rating on the stock in a report on Friday, January 10th. Jefferies Financial Group upgraded shares of Applied Materials from a "hold" rating to a "buy" rating and set a $195.00 price target for the company in a research report on Friday, March 28th. Wells Fargo & Company dropped their target price on Applied Materials from $210.00 to $200.00 and set an "overweight" rating for the company in a report on Monday, January 13th. Finally, Stifel Nicolaus dropped their price objective on Applied Materials from $235.00 to $195.00 and set a "buy" rating for the company in a research note on Tuesday. One equities research analyst has rated the stock with a sell rating, six have assigned a hold rating and seventeen have given a buy rating to the stock. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of $210.29.

Insider Transactions at Applied Materials

In related news, CEO Gary E. Dickerson acquired 50,000 shares of the stock in a transaction that occurred on Thursday, April 3rd. The shares were bought at an average price of $137.30 per share, for a total transaction of $6,865,000.00. Following the completion of the transaction, the chief executive officer now directly owns 1,716,058 shares in the company, valued at approximately $235,614,763.40. This trade represents a 3.00 % increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CAO Adam Sanders sold 450 shares of the firm's stock in a transaction that occurred on Tuesday, April 1st. The stock was 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. The trade was a 6.89 % decrease in their position. 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 and other institutional investors have recently added to or reduced their stakes in AMAT. Crews Bank & Trust purchased a new stake in shares of Applied Materials in the fourth quarter worth $28,000. FPC Investment Advisory Inc. bought a new stake in Applied Materials during the fourth quarter valued at about $28,000. YANKCOM Partnership bought a new position in shares of Applied Materials in the fourth quarter worth about $32,000. City Holding Co. bought a new stake in Applied Materials during the 4th quarter valued at approximately $39,000. Finally, Mascagni Wealth Management Inc. bought a new position in Applied Materials in the 4th quarter worth approximately $44,000. 80.56% of the stock is owned by hedge funds and other institutional investors.

Applied Materials Stock Performance

The stock has a market cap of $111.68 billion, a P/E ratio of 17.97, a PEG ratio of 1.81 and a beta of 1.61. The firm's 50-day moving average price is $152.67 and its 200-day moving average price is $170.78. 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 issued its quarterly earnings data on Thursday, February 13th. The manufacturing equipment provider reported $2.38 earnings per share for the quarter, beating analysts' consensus estimates of $2.28 by $0.10. Applied Materials had a return on equity of 39.50% and a net margin of 22.95%. Sell-side analysts expect that Applied Materials, Inc. will post 9.38 earnings per share for the current fiscal year.

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 given a $0.46 dividend. This represents a $1.84 annualized dividend and a yield of 1.34%. The ex-dividend date of this dividend is Thursday, May 22nd. This is a boost from Applied Materials's previous quarterly dividend of $0.40. Applied Materials's payout ratio is currently 24.05%.

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