Stocks

Applied Materials (NASDAQ:AMAT) Shares Gap Down - What's Next?

Published December 5, 2024

Shares of Applied Materials, Inc. (NASDAQ:AMAT - Get Free Report) experienced a gap down prior to trading on Thursday. The stock previously closed at $181.16 but opened lower at $176.54. The latest trading price for Applied Materials shares stood at $177.01, with a trading volume of 785,926 shares.

Wall Street Analysts Forecast Growth

Applied Materials Market Capitulates: Now is the Time to Buy

A variety of research analysts have recently provided their insights on the company. B. Riley lowered their price target for Applied Materials from $300.00 to $280.00 while maintaining a "buy" rating on the stock in a report dated August 16th. Meanwhile, StockNews.com revised its rating on Applied Materials from "buy" to "hold" on September 14th. Additionally, Deutsche Bank Aktiengesellschaft reduced its price target from $220.00 to $200.00 while assigning a "hold" rating on November 15th. Cantor Fitzgerald confirmed an "overweight" rating with a target price of $250.00 in the same report. Lastly, Stifel Nicolaus decreased their price target from $270.00 to $250.00 and reiterated a "buy" rating on November 12th. Currently, one analyst has rated the stock as a sell, seven have issued hold ratings, and fifteen analysts have given buy ratings. According to data sourced from MarketBeat.com, the stock holds an average rating of "Moderate Buy" with a consensus price target of $220.76.

Applied Materials Price Performance

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In terms of price performance, Applied Materials has a 50-day simple moving average of $187.30, while its 200-day simple moving average is registered at $203.83. The company maintains a current ratio of 2.51 and a quick ratio of 1.87, alongside a debt-to-equity ratio of 0.29. As of now, the stock commands a market capitalization of $143.73 billion, a PE ratio of 21.04, and a PEG ratio of 1.72, with a beta value of 1.52.

Applied Materials last reported its quarterly earnings on November 14th, revealing an earnings per share (EPS) of $2.32, surpassing analysts' expectations of $2.19 by $0.13. The company enjoyed a return on equity of 39.26% and a net margin of 26.41%. The reported revenue for the quarter amounted to $7.05 billion, exceeding the consensus estimate of $6.96 billion. Year-on-year, revenue growth was recorded at 4.8% compared to the same quarter last year. Analysts project that Applied Materials, Inc. will achieve earnings per share of 9.5 for the current fiscal year.

Applied Materials Dividend Announcement

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Recently, the company also declared a quarterly dividend to be distributed on December 12th. Investors of record as of November 21st will receive a dividend payment of $0.40 per share, with the ex-dividend date noted as November 21st. This translates to a $1.60 annualized dividend yield, representing approximately 0.92% total yield, and a payout ratio of 18.58%.

Hedge Funds Weigh In On Applied Materials

Large investors have been active in trading shares of Applied Materials. WASHINGTON TRUST Co increased its stake by 3.3% during the second quarter, owning a total of 1,556 shares valued at $367,000 after acquiring 49 additional shares. Similarly, Optimum Investment Advisors raised their stake by 1.3%, holding 4,016 shares worth $948,000 following the purchase of 50 shares in the same quarter. SlateStone Wealth LLC added 4.7% to their holdings, now owning 1,105 shares valued at $261,000 after buying an additional 50 shares. Forum Financial ManagementLP raised its shares by 0.6%, with a total of 9,143 shares currently worth $1,847,000 after acquiring 53 shares recently. Lastly, Northwest Investment Counselors LLC grew its investment in Applied Materials by 0.9% in the second quarter, currently boasting 6,090 shares valued at $1,437,000 following a purchase of 54 additional shares. Overall, hedge funds and institutional investors own approximately 80.56% of the company's stock.

About Applied Materials

Applied Materials, Inc. specializes in providing manufacturing equipment, services, and software to the semiconductor, display, and associated industries. The company operates through three segments: Semiconductor Systems, Applied Global Services, and Display and Adjacent Markets. The Semiconductor Systems segment is dedicated to the development, manufacturing, and sale of diverse equipment utilized in the fabrication of semiconductor chips or integrated circuits.