Generali Investments Management Co LLC Acquires Stake in Applied Materials, Inc.

Generali Investments Management Co LLC has made a significant investment in Applied Materials, Inc. (NASDAQ:AMAT - Free Report) by acquiring a new stake in the company during the 4th quarter. According to a recent filing with the Securities and Exchange Commission, the firm purchased 14,722 shares of this manufacturing equipment provider's stock, amounting to a total value of around $2,394,000.

A number of hedge funds have also adjusted their positions in AMAT. EdgePoint Investment Group Inc. increased its stake by an impressive 341.0% in the 3rd quarter, now holding 2,857,155 shares valued at $577,288,000 after acquiring an additional 2,209,218 shares. Janus Henderson Group PLC also raised its holdings by 67.8% during the same quarter, bringing its total to 4,663,133 shares worth $942,187,000 after gaining 1,884,153 shares. Furthermore, Raymond James Financial Inc. and Alecta Tjanstepension Omsesidigt acquired new positions in the 4th quarter, worth $182,962,000 and $157,426,000 respectively. Additionally, Flossbach Von Storch SE boosted its holdings in Applied Materials by 126.6% in the 4th quarter, now owning 1,600,078 shares valued at $260,221,000.

Performance Overview of Applied Materials

As of Wednesday, the stock opened at $153.51. Over the past year, Applied Materials has seen a low of $145.37 and a high of $255.89. The company's 50-day moving average stands at $171.61, with a 200-day moving average of $178.57. Financially, Applied Materials boasts a market capitalization of $124.72 billion, a P/E ratio of 20.07, and a beta of 1.62. The company’s debt-to-equity ratio is 0.29, with a current ratio of 2.67 and a quick ratio of 1.96.

Applied Materials recently reported its earnings on February 13, showing $2.38 earnings per share for the quarter, surpassing the anticipated estimate of $2.28 by $0.10. The company also achieved a return on equity of 39.50% and a net margin of 22.95%. Looking ahead, analysts expect that Applied Materials, Inc. will report an average of 9.38 earnings per share for the current fiscal year.

Dividend and Share Repurchase Announcement

The firm has declared a quarterly dividend scheduled to be paid on June 12 to shareholders recorded on May 22. The new dividend stands at $0.46 per share, increased from the previous $0.40, signaling a positive financial move for the shareholders. This results in an annualized dividend of $1.84 with a yield of 1.20% and a dividend payout ratio of 24.05%.

Additionally, on March 10, the company approved a substantial share repurchase program, allowing for the buyback of $10.00 billion in shares, which constitutes about 8.2% of its outstanding stock. Such buyback programs typically indicate that the board believes the stock is undervalued.

Analyst Ratings and Target Prices

In recent analyses, multiple research firms have offered their insights on Applied Materials. Sanford C. Bernstein lowered their target price from $220.00 to $210.00 while maintaining an "outperform" rating. Edward Jones upgraded the stock from "hold" to "buy." In another analysis, Needham & Company LLC cut the target price from $200.00 to $195.00. Similarly, Wells Fargo & Company adjusted their target from $210.00 to $200.00, reflecting an "overweight" rating. Lastly, Barclays reduced the target price from $200.00 to $190.00 while issuing an "equal weight" rating. Currently, one analyst rates the stock as a sell, seven recommend holding, and sixteen have a buy rating. The average rating stands at "Moderate Buy" with a target price of $215.38.

Insider Trading Activities

In related news, on February 24, CAO Adam Sanders sold 271 shares of Applied Materials stock at an average price of $172.72, resulting in a total value of $46,807.12. Post-transaction, Sanders now has 6,479 shares in the company valued at approximately $1,119,052.88, marking a 4.01% drop in ownership. This transaction has been duly filed with the SEC.

Company Overview of Applied Materials

Applied Materials, Inc. specializes in providing manufacturing equipment, services, and software to the semiconductor, display, and related sectors. The company operates across three segments: Semiconductor Systems, Applied Global Services, and Display and Adjacent Markets, focusing on developing and selling equipment necessary for producing semiconductor chips.

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