Applied Materials (NASDAQ:AMAT) Shares Up 1.8% – Time to Buy?

Shares of Applied Materials, Inc. (NASDAQ:AMAT) were up 1.8% on Tuesday . The company traded as high as $172.80 and last traded at $172.85. Approximately 991,114 shares were traded during trading, a decline of 86% from the average daily volume of 6,939,911 shares. The stock had previously closed at $169.79.

Analysts Set New Price Targets

Several research analysts have commented on the stock. Mizuho lowered their price target on shares of Applied Materials from $205.00 to $195.00 and set an “outperform” rating for the company in a report on Friday, May 16th. Wall Street Zen upgraded shares of Applied Materials from a “hold” rating to a “buy” rating in a research note on Friday. Morgan Stanley upgraded Applied Materials from an “underweight” rating to an “equal weight” rating and cut their price target for the company from $162.00 to $158.00 in a research note on Friday. Stifel Nicolaus decreased their price target on Applied Materials from $235.00 to $195.00 and set a “buy” rating for the company in a report on Tuesday, April 15th. Finally, JPMorgan Chase & Co. dropped their price objective on Applied Materials from $240.00 to $210.00 and set an “overweight” rating on the stock in a report on Friday, May 16th. Six equities research analysts have rated the stock with a hold rating and seventeen have assigned a buy rating to the company. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of $199.29.

Applied Materials Stock Up 2.6%

The company has a market capitalization of $139.80 billion, a price-to-earnings ratio of 22.75, a PEG ratio of 1.81 and a beta of 1.67. The company has a current ratio of 2.67, a quick ratio of 1.96 and a debt-to-equity ratio of 0.29. The firm’s 50 day simple moving average is $152.67 and its 200-day simple moving average is $163.07.

Applied Materials (NASDAQ:AMAT) last posted its quarterly earnings results on Thursday, May 15th. The manufacturing equipment provider reported $2.39 earnings per share for the quarter, topping analysts’ consensus estimates of $2.31 by $0.08. Applied Materials had a net margin of 22.95% and a return on equity of 39.50%. The business had revenue of $7.10 billion for the quarter, compared to analysts’ expectations of $7.12 billion. During the same period in the prior year, the company posted $2.09 EPS. The business’s revenue for the quarter was up 6.8% on a year-over-year basis. On average, sell-side analysts anticipate that Applied Materials, Inc. will post 9.38 EPS for the current fiscal year.

Applied Materials announced that its board has initiated a stock repurchase program on Monday, March 10th that allows the company to buyback $10.00 billion in outstanding shares. This buyback authorization allows the manufacturing equipment provider to buy up to 8.2% of its stock through open market purchases. Stock buyback programs are typically a sign that the company’s leadership believes its shares are undervalued.

Insider Buying and Selling at Applied Materials

In related news, CEO Gary E. Dickerson bought 50,000 shares of the firm’s stock in a transaction dated Thursday, April 3rd. The stock was bought at an average price of $137.30 per share, with a total value of $6,865,000.00. Following the completion of the transaction, the chief executive officer now directly owns 1,716,058 shares of the company’s stock, valued at approximately $235,614,763.40. This 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 can be accessed through this hyperlink. Also, CAO Adam Sanders sold 450 shares of the company’s stock in a transaction that occurred on Tuesday, April 1st. The shares were sold at an average price of $144.83, for a total value of $65,173.50. Following the sale, the chief accounting officer now directly owns 6,077 shares in the company, valued at approximately $880,131.91. This represents a 6.89% decrease in their ownership of the stock. The disclosure for this sale can be found here. 0.24% of the stock is owned by company insiders.

Hedge Funds Weigh In On Applied Materials

Several hedge funds have recently modified their holdings of AMAT. Jacobi Capital Management LLC raised its position in shares of Applied Materials by 51.2% during the fourth quarter. Jacobi Capital Management LLC now owns 18,785 shares of the manufacturing equipment provider’s stock worth $3,055,000 after purchasing an additional 6,364 shares during the period. Skye Global Management LP purchased a new stake in shares of Applied Materials in the 4th quarter valued at approximately $45,862,000. Cable Hill Partners LLC boosted its stake in Applied Materials by 10.2% in the 4th quarter. Cable Hill Partners LLC now owns 3,485 shares of the manufacturing equipment provider’s stock worth $567,000 after purchasing an additional 322 shares during the period. Value Partners Investments Inc. grew its position in Applied Materials by 8.7% during the 4th quarter. Value Partners Investments Inc. now owns 9,896 shares of the manufacturing equipment provider’s stock worth $1,608,000 after purchasing an additional 793 shares in the last quarter. Finally, Townsquare Capital LLC raised its stake in Applied Materials by 15.6% during the 4th quarter. Townsquare Capital LLC now owns 71,577 shares of the manufacturing equipment provider’s stock valued at $11,640,000 after purchasing an additional 9,672 shares during the period. 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.