Applied Materials (NASDAQ:AMAT) Hits New 52-Week Low – What’s Next?

Applied Materials, Inc. (NASDAQ:AMAT) reached a new 52-week low during trading on Monday . The company traded as low as $141.16 and last traded at $143.67, with a volume of 776471 shares trading hands. The stock had previously closed at $145.06.

Analysts Set New Price Targets

A number of equities research analysts recently issued reports on the stock. Jefferies Financial Group upgraded shares of Applied Materials from a “hold” rating to a “buy” rating and set a $195.00 target price for the company in a report on Friday. Susquehanna lifted their target price on Applied Materials from $155.00 to $165.00 and gave the company a “neutral” rating in a report on Wednesday, January 22nd. Stifel Nicolaus lowered their price target on Applied Materials from $250.00 to $235.00 and set a “buy” rating for the company in a research report on Tuesday, February 11th. Needham & Company LLC cut their price objective on Applied Materials from $200.00 to $195.00 and set a “buy” rating on the stock in a report on Friday, February 14th. Finally, Barclays reduced their price target on shares of 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. One investment analyst has rated the stock with a sell rating, six have assigned a hold rating and seventeen have assigned a buy rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $214.67.

Applied Materials Trading Down 1.2 %

The firm has a market cap of $116.47 billion, a price-to-earnings ratio of 18.75, a price-to-earnings-growth ratio of 1.81 and a beta of 1.62. The business’s 50 day moving average price is $167.33 and its 200-day moving average price is $176.84. The company has a debt-to-equity ratio of 0.29, a quick ratio of 1.96 and a current ratio of 2.67.

Applied Materials (NASDAQ:AMAT) last released its earnings results on Thursday, February 13th. The manufacturing equipment provider reported $2.38 EPS for the quarter, topping 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%. Equities analysts expect that Applied Materials, Inc. will post 9.38 EPS for the current year.

Applied Materials Increases Dividend

The firm also recently announced 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 is a boost from Applied Materials’s previous quarterly dividend of $0.40. This represents a $1.84 annualized dividend and a yield of 1.28%. The ex-dividend date is Thursday, May 22nd. Applied Materials’s dividend payout ratio (DPR) is currently 24.05%.

Applied Materials declared that its Board of Directors has initiated a share buyback plan on Monday, March 10th that authorizes the company to repurchase $10.00 billion in shares. This repurchase authorization authorizes the manufacturing equipment provider to reacquire up to 8.2% of its stock through open market purchases. Stock repurchase plans are often a sign that the company’s leadership believes its stock is undervalued.

Insider Buying and Selling at Applied Materials

In other news, CAO Adam Sanders sold 271 shares of the company’s stock in a transaction that occurred on Monday, February 24th. The shares were sold at an average price of $172.72, for a total value of $46,807.12. Following the completion of the sale, the chief accounting officer now directly owns 6,479 shares of the company’s stock, valued at approximately $1,119,052.88. This represents a 4.01 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. 0.24% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Applied Materials

A number of institutional investors have recently added to or reduced their stakes in the company. FPC Investment Advisory Inc. bought a new stake in shares of Applied Materials in the 4th quarter worth $28,000. Crews Bank & Trust acquired a new stake in Applied Materials in the 4th quarter valued at about $28,000. YANKCOM Partnership acquired a new stake in Applied Materials in the 4th quarter valued at about $32,000. Dunhill Financial LLC boosted its position in shares of Applied Materials by 61.4% during the 3rd quarter. Dunhill Financial LLC now owns 213 shares of the manufacturing equipment provider’s stock valued at $43,000 after purchasing an additional 81 shares in the last quarter. Finally, City Holding Co. acquired a new position in shares of Applied Materials in the 4th quarter worth approximately $39,000. 80.56% of the stock is currently owned by institutional investors and hedge funds.

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.