Applied Materials, Inc. (NASDAQ:AMAT) CEO Buys $6,865,000.00 in Stock

Applied Materials, Inc. (NASDAQ:AMAT) CEO Gary E. Dickerson bought 50,000 shares of the business’s stock in a transaction on Thursday, April 3rd. The shares were acquired at an average cost of $137.30 per share, for a total transaction of $6,865,000.00. Following the purchase, the chief executive officer now directly owns 1,716,058 shares in the company, valued at $235,614,763.40. This represents a 3.00 % increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through this link.

Applied Materials Trading Up 4.6 %

NASDAQ AMAT traded up $5.90 on Monday, hitting $132.85. 18,929,985 shares of the company were exchanged, compared to its average volume of 6,425,374. Applied Materials, Inc. has a twelve month low of $121.86 and a twelve month high of $255.89. The company’s 50 day moving average price is $162.19 and its 200-day moving average price is $175.20. The firm has a market capitalization of $107.93 billion, a P/E ratio of 17.37, a price-to-earnings-growth ratio of 1.81 and a beta of 1.61. 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) last released its quarterly earnings results on Thursday, February 13th. The manufacturing equipment provider reported $2.38 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.28 by $0.10. Applied Materials had a net margin of 22.95% and a return on equity of 39.50%. Analysts predict that Applied Materials, Inc. will post 9.38 earnings per share for the current fiscal year.

Applied Materials announced that its Board of Directors has initiated a stock repurchase program on Monday, March 10th that allows the company to repurchase $10.00 billion in shares. This repurchase authorization allows the manufacturing equipment provider to purchase up to 8.2% of its shares through open market purchases. Shares repurchase programs are generally an indication that the company’s management believes its shares are undervalued.

Applied Materials Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, June 12th. Stockholders of record on Thursday, May 22nd will be given a $0.46 dividend. This represents a $1.84 annualized dividend and a dividend yield of 1.39%. 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 dividend payout ratio (DPR) is 24.05%.

Institutional Investors Weigh In On Applied Materials

A number of institutional investors have recently bought and sold shares of AMAT. Norges Bank purchased a new stake in shares of Applied Materials in the fourth quarter worth approximately $1,588,422,000. GAMMA Investing LLC increased its stake in Applied Materials by 18,402.1% in the 1st quarter. GAMMA Investing LLC now owns 1,824,304 shares of the manufacturing equipment provider’s stock valued at $2,647,430,000 after buying an additional 1,814,444 shares during the period. Northern Trust Corp lifted its position in Applied Materials by 18.6% in the 4th quarter. Northern Trust Corp now owns 10,230,464 shares of the manufacturing equipment provider’s stock worth $1,663,780,000 after buying an additional 1,602,645 shares in the last quarter. Kovitz Investment Group Partners LLC boosted its stake in shares of Applied Materials by 301.6% during the 4th quarter. Kovitz Investment Group Partners LLC now owns 1,959,997 shares of the manufacturing equipment provider’s stock valued at $318,754,000 after buying an additional 1,471,953 shares during the period. Finally, Two Sigma Investments LP grew its holdings in shares of Applied Materials by 10,767.6% during the 4th quarter. Two Sigma Investments LP now owns 1,347,580 shares of the manufacturing equipment provider’s stock valued at $219,157,000 after acquiring an additional 1,335,180 shares in the last quarter. 80.56% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

A number of research analysts have recently commented on the company. Needham & Company LLC lowered their price target on Applied Materials from $200.00 to $195.00 and set a “buy” rating on the stock in a report on Friday, February 14th. Edward Jones raised shares of Applied Materials from a “hold” rating to a “buy” rating in a research note on Wednesday, March 12th. Citigroup upped their price target on shares of Applied Materials from $194.00 to $202.00 and gave the stock a “buy” rating in a research note on Tuesday, February 18th. Wells Fargo & Company lowered their price objective on shares of Applied Materials from $210.00 to $200.00 and set an “overweight” rating on the stock in a research note on Monday, January 13th. Finally, Mizuho cut their target price on Applied Materials from $220.00 to $210.00 and set an “outperform” rating for the company in a research report on Friday, January 10th. One analyst has rated the stock with a sell rating, six have assigned a hold rating and seventeen have given a buy rating to the company’s stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $214.67.

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.