Applied Materials (NASDAQ:AMAT) Trading Down 2.2% on Analyst Downgrade

Shares of Applied Materials, Inc. (NASDAQ:AMAT) fell 2.2% during trading on Friday after Mizuho lowered their price target on the stock from $245.00 to $225.00. Mizuho currently has an outperform rating on the stock. Applied Materials traded as low as $190.91 and last traded at $192.48. 2,264,372 shares were traded during mid-day trading, a decline of 63% from the average session volume of 6,049,863 shares. The stock had previously closed at $196.71.

A number of other equities research analysts have also recently commented on AMAT. Needham & Company LLC reaffirmed a “buy” rating and set a $260.00 price objective on shares of Applied Materials in a research note on Friday, August 16th. JPMorgan Chase & Co. upped their price target on Applied Materials from $240.00 to $250.00 and gave the company an “overweight” rating in a research note on Friday, August 16th. Stifel Nicolaus reduced their price objective on shares of Applied Materials from $275.00 to $270.00 and set a “buy” rating on the stock in a research note on Friday, August 16th. Barclays raised shares of Applied Materials from an “underweight” rating to an “equal weight” rating and upped their target price for the company from $165.00 to $225.00 in a research note on Wednesday, June 5th. Finally, UBS Group reduced their price target on shares of Applied Materials from $220.00 to $210.00 and set a “neutral” rating on the stock in a research report on Thursday, September 12th. Eight research analysts have rated the stock with a hold rating and fifteen have assigned a buy rating to the stock. According to MarketBeat, Applied Materials currently has an average rating of “Moderate Buy” and an average target price of $231.05.

Institutional Trading of Applied Materials

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. First National Bank of Mount Dora Trust Investment Services bought a new stake in Applied Materials during the first quarter worth about $1,764,000. GAMMA Investing LLC raised its stake in shares of Applied Materials by 89.3% during the 2nd quarter. GAMMA Investing LLC now owns 8,988 shares of the manufacturing equipment provider’s stock worth $2,121,000 after purchasing an additional 4,239 shares in the last quarter. International Assets Investment Management LLC boosted its holdings in shares of Applied Materials by 5.4% in the 1st quarter. International Assets Investment Management LLC now owns 3,350 shares of the manufacturing equipment provider’s stock valued at $699,000 after buying an additional 172 shares during the last quarter. Sivia Capital Partners LLC grew its stake in shares of Applied Materials by 5.7% in the second quarter. Sivia Capital Partners LLC now owns 2,338 shares of the manufacturing equipment provider’s stock valued at $552,000 after buying an additional 126 shares in the last quarter. Finally, Calton & Associates Inc. acquired a new position in Applied Materials during the first quarter worth $243,000. 80.56% of the stock is currently owned by institutional investors and hedge funds.

Applied Materials Price Performance

The stock has a market capitalization of $159.10 billion, a P/E ratio of 22.09, a price-to-earnings-growth ratio of 2.21 and a beta of 1.55. The company has a debt-to-equity ratio of 0.33, a current ratio of 2.86 and a quick ratio of 2.09. The company’s 50-day simple moving average is $198.35 and its 200-day simple moving average is $210.18.

Applied Materials (NASDAQ:AMAT) last issued its earnings results on Thursday, August 15th. The manufacturing equipment provider reported $2.12 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.02 by $0.10. Applied Materials had a net margin of 27.74% and a return on equity of 39.99%. The company had revenue of $6.78 billion for the quarter, compared to analysts’ expectations of $6.68 billion. During the same period in the prior year, the firm earned $1.90 EPS. Applied Materials’s quarterly revenue was up 5.5% compared to the same quarter last year. As a group, sell-side analysts expect that Applied Materials, Inc. will post 8.49 EPS for the current fiscal year.

Applied Materials Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, December 12th. Stockholders of record on Thursday, November 21st will be given a $0.40 dividend. The ex-dividend date is Thursday, November 21st. This represents a $1.60 dividend on an annualized basis and a dividend yield of 0.83%. Applied Materials’s payout ratio is 18.39%.

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.