Mizuho Downgrades Price Target for Applied Materials to $210.00

Applied Materials (NASDAQ:AMAT) has recently seen its price target revised by Mizuho, which decreased the target from $220.00 to $210.00 in a research note shared with investors on Friday, as reported by Benzinga. Despite this adjustment, Mizuho maintains an "outperform" rating for the manufacturing equipment company's stock.

In addition to Mizuho's revision, several other financial institutions have also updated their evaluations of AMAT. Notably, Goldman Sachs lowered its price target for Applied Materials from $230.00 to $202.00 while affirming a "buy" rating on the stock. Furthermore, Sanford C. Bernstein similarly reduced their target from $220.00 to $210.00, maintaining an "outperform" rating as well.

Cantor Fitzgerald stands out among other brokerages by affirming an "overweight" rating with a price target of $250.00 on November 15. There has also been a cut from Citigroup, which lowered its price target from $240.00 to $217.00 while maintaining a "buy" rating. TD Cowen has reduced its price objective from $250.00 to $230.00, also assigning a "buy" rating.

In terms of market sentiment, analysis indicates that one equities research analyst has rated Applied Materials with a "sell," seven analysts have recommended a "hold," and fifteen have given a "buy" rating. According to data compiled from MarketBeat.com, Applied Materials has an average rating of "Moderate Buy" and a consensus price target of $218.71.

Applied Materials Stock Performance

On Friday, shares of Applied Materials opened at $171.65. The stock has experienced significant fluctuations over the past year, recording a fifty-two week low of $148.48 and a high of $255.89. Its 50-day simple moving average stands at $173.91, with a two-hundred day simple moving average of $192.62. Financial metrics reveal a debt-to-equity ratio of 0.29, a quick ratio of 1.87, and a current ratio of 2.51. Currently, Applied Materials has a market capitalization of $139.67 billion, a price-to-earnings ratio of 19.94, a PEG ratio of 1.61, and a beta of 1.53.

In its most recent earnings release on November 14, Applied Materials reported earnings of $2.32 per share, surpassing analysts' expectations of $2.19 by a margin of $0.13. The company shared a remarkable net margin of 26.41% and a return on equity of 39.26%. Revenue for the quarter reached $7.05 billion, compared to the expected $6.96 billion. This marks a 4.8% increase in revenue year-over-year from the previous year's quarter, where it posted earnings of $2.12 per share. Analysts anticipate that Applied Materials will achieve earnings of 9.48 per share for the current fiscal year.

Dividend Announcement from Applied Materials

Additionally, the company has announced a quarterly dividend that will be distributed on March 13. Investors who are on record by February 20 will receive a dividend payout of $0.40. The ex-dividend date coincides with February 20. This results in an annualized dividend of $1.60, yielding a 0.93%. The current dividend payout ratio (DPR) for Applied Materials is 18.58%.

Institutional Investment Activity

Recently, there have been movements by hedge funds and institutional investors related to their stakes in Applied Materials. For instance, Bruce G. Allen Investments LLC increased its holdings in Applied Materials by 18.5% during the last quarter, now owning 609 shares valued at approximately $99,000 after purchasing an additional 95 shares. Similarly, Jacobs & Co. CA raised its position by 4.1%, acquiring 68,673 shares worth approximately $11.17 million.

LVM Capital Management Ltd. MI also increased its stake by 2.4%, while CCM Investment Advisers LLC increased its position by 15.9%, bringing its total to 97,007 shares valued at about $15.78 million. Ridgewood Investments LLC significantly raised its stake by 229.6%, now owning 5,497 shares valued at roughly $894,000. Overall, institutional ownership represents approximately 80.56% of Applied Materials' outstanding shares.

About Applied Materials

Applied Materials, Inc specializes in providing manufacturing equipment, services, and software for various sectors, including semiconductor and display industries. The company operates across three segments: Semiconductor Systems, Applied Global Services, and Display and Adjacent Markets. Specifically, the Semiconductor Systems segment focuses on developing, manufacturing, and selling equipment crucial to fabricating semiconductor chips and integrated circuits.

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