Applied Materials (NASDAQ:AMAT) Shares Gap Up – Here’s Why

Applied Materials, Inc. (NASDAQ:AMAT)’s share price gapped up prior to trading on Thursday . The stock had previously closed at $178.38, but opened at $185.80. Applied Materials shares last traded at $185.01, with a volume of 1,371,347 shares.

Wall Street Analyst Weigh In

A number of analysts have recently weighed in on AMAT shares. TD Cowen lowered their target price on Applied Materials from $250.00 to $230.00 and set a “buy” rating for the company in a research note on Friday, November 15th. KeyCorp upgraded shares of Applied Materials from a “sector weight” rating to an “overweight” rating and set a $225.00 price objective for the company in a research report on Friday. Evercore ISI decreased their price target on shares of Applied Materials from $260.00 to $250.00 and set an “outperform” rating on the stock in a research note on Friday, November 15th. Needham & Company LLC lowered their price target on shares of Applied Materials from $240.00 to $225.00 and set a “buy” rating for the company in a report on Friday, November 15th. Finally, Bank of America reduced their price objective on Applied Materials from $220.00 to $210.00 and set a “buy” rating on the stock in a report on Friday, November 15th. One research analyst has rated the stock with a sell rating, seven have given a hold rating and sixteen have assigned a buy rating to the stock. Based on data from MarketBeat.com, Applied Materials currently has a consensus rating of “Moderate Buy” and a consensus price target of $217.41.

Applied Materials Stock Up 3.0 %

The stock’s fifty day moving average price is $173.10 and its 200-day moving average price is $191.61. The company has a market capitalization of $156.27 billion, a price-to-earnings ratio of 22.31, a P/E/G ratio of 1.75 and a beta of 1.53. The company has a quick ratio of 1.87, a current ratio of 2.51 and a debt-to-equity ratio of 0.29.

Applied Materials (NASDAQ:AMAT) last announced its quarterly earnings data on Thursday, November 14th. The manufacturing equipment provider reported $2.32 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.19 by $0.13. Applied Materials had a return on equity of 39.26% and a net margin of 26.41%. The company had revenue of $7.05 billion for the quarter, compared to analysts’ expectations of $6.96 billion. During the same quarter in the prior year, the business posted $2.12 EPS. The business’s revenue was up 4.8% compared to the same quarter last year. On average, sell-side analysts predict that Applied Materials, Inc. will post 9.37 earnings per share for the current fiscal year.

Applied Materials Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, March 13th. Shareholders of record on Thursday, February 20th will be paid a $0.40 dividend. The ex-dividend date is Thursday, February 20th. This represents a $1.60 annualized dividend and a yield of 0.83%. Applied Materials’s dividend payout ratio is 18.58%.

Hedge Funds Weigh In On Applied Materials

Several institutional investors and hedge funds have recently modified their holdings of the stock. EdgePoint Investment Group Inc. boosted its stake in Applied Materials by 341.0% in the 3rd quarter. EdgePoint Investment Group Inc. now owns 2,857,155 shares of the manufacturing equipment provider’s stock valued at $577,288,000 after purchasing an additional 2,209,218 shares during the period. Janus Henderson Group PLC grew its stake in shares of Applied Materials by 67.8% in the third quarter. Janus Henderson Group PLC now owns 4,663,133 shares of the manufacturing equipment provider’s stock valued at $942,187,000 after acquiring an additional 1,884,153 shares in the last quarter. Van ECK Associates Corp increased its position in Applied Materials by 29.8% during the third quarter. Van ECK Associates Corp now owns 6,571,178 shares of the manufacturing equipment provider’s stock worth $1,327,707,000 after acquiring an additional 1,509,439 shares during the period. Assenagon Asset Management S.A. raised its stake in Applied Materials by 262.5% in the 3rd quarter. Assenagon Asset Management S.A. now owns 1,390,501 shares of the manufacturing equipment provider’s stock worth $280,951,000 after purchasing an additional 1,006,937 shares in the last quarter. Finally, Alkeon Capital Management LLC boosted its holdings in Applied Materials by 87.7% in the 3rd quarter. Alkeon Capital Management LLC now owns 1,877,133 shares of the manufacturing equipment provider’s stock valued at $379,275,000 after purchasing an additional 877,133 shares during the period. 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.