Applied Materials (NASDAQ:AMAT) Shares Gap Up – Here’s Why

Applied Materials, Inc. (NASDAQ:AMAT)’s share price gapped up prior to trading on Wednesday . The stock had previously closed at $172.85, but opened at $180.00. Applied Materials shares last traded at $174.75, with a volume of 985,225 shares.

Analyst Upgrades and Downgrades

Several research analysts recently commented on AMAT shares. Mizuho dropped 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. Morgan Stanley reiterated an “underweight” rating and set a $164.00 price target (down from $179.00) on shares of Applied Materials in a report on Thursday, December 5th. TD Cowen dropped their target price on shares of Applied Materials from $250.00 to $230.00 and set a “buy” rating on the stock in a research report on Friday, November 15th. Stifel Nicolaus dropped their price objective on shares of Applied Materials from $270.00 to $250.00 and set a “buy” rating on the stock in a report on Tuesday, November 12th. Finally, Cantor Fitzgerald reaffirmed an “overweight” rating and issued a $250.00 price target on shares of Applied Materials in a report on Friday, November 15th. One equities research analyst has rated the stock with a sell rating, seven have assigned a hold rating and fifteen have given a buy rating to the company’s stock. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of $218.71.

Applied Materials Trading Up 1.2 %

The company has a debt-to-equity ratio of 0.29, a quick ratio of 1.87 and a current ratio of 2.51. The firm has a market cap of $142.16 billion, a price-to-earnings ratio of 20.30, a P/E/G ratio of 1.99 and a beta of 1.53. The company’s 50-day moving average is $174.15 and its 200-day moving average is $187.64.

Applied Materials (NASDAQ:AMAT) last released its quarterly earnings results on Thursday, November 14th. The manufacturing equipment provider reported $2.32 EPS for the quarter, beating the consensus estimate of $2.19 by $0.13. Applied Materials had a net margin of 26.41% and a return on equity of 39.26%. The business had revenue of $7.05 billion for the quarter, compared to analysts’ expectations of $6.96 billion. During the same period in the prior year, the firm earned $2.12 earnings per share. Applied Materials’s revenue was up 4.8% compared to the same quarter last year. On average, research analysts predict that Applied Materials, Inc. will post 9.38 earnings per share for the current year.

Applied Materials Announces Dividend

The company 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 $0.40 dividend. The ex-dividend date is Thursday, February 20th. This represents a $1.60 dividend on an annualized basis and a yield of 0.91%. Applied Materials’s payout ratio is 18.58%.

Hedge Funds Weigh In On Applied Materials

Large investors have recently bought and sold shares of the business. Forum Financial Management LP boosted its position in shares of Applied Materials by 0.6% in the 3rd quarter. Forum Financial Management LP now owns 9,143 shares of the manufacturing equipment provider’s stock worth $1,847,000 after purchasing an additional 53 shares during the last quarter. Sargent Investment Group LLC boosted its stake in Applied Materials by 4.0% in the 3rd quarter. Sargent Investment Group LLC now owns 1,415 shares of the manufacturing equipment provider’s stock worth $286,000 after purchasing an additional 55 shares during the period. Biltmore Family Office LLC lifted its stake in Applied Materials by 5.3% in the 3rd quarter. Biltmore Family Office LLC now owns 1,093 shares of the manufacturing equipment provider’s stock valued at $221,000 after acquiring an additional 55 shares in the last quarter. Field & Main Bank increased its stake in Applied Materials by 1.8% in the 4th quarter. Field & Main Bank now owns 3,170 shares of the manufacturing equipment provider’s stock valued at $516,000 after buying an additional 55 shares during the last quarter. Finally, waypoint wealth counsel boosted its position in Applied Materials by 3.1% during the third quarter. waypoint wealth counsel now owns 1,853 shares of the manufacturing equipment provider’s stock valued at $374,000 after purchasing an additional 56 shares during the last quarter. 80.56% of the stock is currently owned by institutional investors and hedge funds.

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.