Applied Materials (NASDAQ:AMAT) Shares Up 2.7% Following Dividend Announcement

Applied Materials, Inc. (NASDAQ:AMAT)’s share price was up 2.7% on Friday following a dividend announcement from the company. The stock traded as high as $188.25 and last traded at $188.09. Approximately 1,023,675 shares traded hands during trading, a decline of 83% from the average daily volume of 6,065,470 shares. The stock had previously closed at $183.21.

The newly announced dividend which will be paid on Thursday, December 12th. Shareholders of record on Thursday, November 21st will be issued a dividend of $0.40 per share. This represents a $1.60 annualized dividend and a yield of 0.85%. The ex-dividend date is Thursday, November 21st. Applied Materials’s dividend payout ratio is currently 18.39%.

Wall Street Analyst Weigh In

A number of equities research analysts have recently issued reports on the stock. B. Riley cut their target price on shares of Applied Materials from $300.00 to $280.00 and set a “buy” rating on the stock in a research note on Friday, August 16th. UBS Group cut their price objective on Applied Materials from $220.00 to $210.00 and set a “neutral” rating on the stock in a research note on Thursday. JPMorgan Chase & Co. lifted their target price on Applied Materials from $240.00 to $250.00 and gave the stock an “overweight” rating in a research report on Friday, August 16th. Barclays raised Applied Materials from an “underweight” rating to an “equal weight” rating and upped their price target for the company from $165.00 to $225.00 in a research report on Wednesday, June 5th. Finally, Deutsche Bank Aktiengesellschaft decreased their price objective on shares of Applied Materials from $260.00 to $230.00 and set a “hold” rating for the company in a report on Friday, August 16th. Seven research analysts have rated the stock with a hold rating and fifteen have assigned a buy rating to the company. Based on data from MarketBeat, Applied Materials has an average rating of “Moderate Buy” and a consensus price target of $234.95.

Applied Materials Stock Up 2.9 %

The firm’s 50 day simple moving average is $204.08 and its 200 day simple moving average is $210.71. The company has a market cap of $155.37 billion, a price-to-earnings ratio of 21.66, a price-to-earnings-growth ratio of 2.21 and a beta of 1.55. The company has a quick ratio of 2.09, a current ratio of 2.86 and a debt-to-equity ratio of 0.33.

Applied Materials (NASDAQ:AMAT) last posted its earnings results on Thursday, August 15th. The manufacturing equipment provider reported $2.12 EPS for the quarter, beating the consensus estimate of $2.02 by $0.10. Applied Materials had a return on equity of 39.99% and a net margin of 27.74%. The firm had revenue of $6.78 billion for the quarter, compared to analysts’ expectations of $6.68 billion. During the same period last year, the firm earned $1.90 EPS. The firm’s revenue was up 5.5% compared to the same quarter last year. Sell-side analysts anticipate that Applied Materials, Inc. will post 8.49 EPS for the current fiscal year.

Insider Activity

In related news, insider Prabu G. Raja sold 50,000 shares of the company’s stock in a transaction dated Tuesday, June 18th. The shares were sold at an average price of $249.17, for a total value of $12,458,500.00. Following the completion of the sale, the insider now owns 458,417 shares of the company’s stock, valued at $114,223,763.89. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. In related news, insider Prabu G. Raja sold 50,000 shares of the business’s stock in a transaction that occurred on Tuesday, June 18th. The stock was sold at an average price of $249.17, for a total transaction of $12,458,500.00. Following the sale, the insider now owns 458,417 shares of the company’s stock, valued at $114,223,763.89. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Thomas J. Iannotti sold 9,827 shares of the stock in a transaction on Friday, June 21st. The shares were sold at an average price of $236.65, for a total value of $2,325,559.55. Following the transaction, the director now directly owns 49,185 shares of the company’s stock, valued at $11,639,630.25. The disclosure for this sale can be found here. Corporate insiders own 0.29% of the company’s stock.

Institutional Investors Weigh In On Applied Materials

A number of institutional investors and hedge funds have recently bought and sold shares of AMAT. Lazari Capital Management Inc. lifted its stake in Applied Materials by 15.8% during the second quarter. Lazari Capital Management Inc. now owns 1,268 shares of the manufacturing equipment provider’s stock valued at $299,000 after purchasing an additional 173 shares during the last quarter. Sanctuary Advisors LLC acquired a new stake in shares of Applied Materials during the 2nd quarter valued at $13,521,000. Clearbridge Investments LLC boosted its stake in shares of Applied Materials by 51.0% during the 2nd quarter. Clearbridge Investments LLC now owns 11,812 shares of the manufacturing equipment provider’s stock worth $2,788,000 after acquiring an additional 3,990 shares in the last quarter. New Wave Wealth Advisors LLC acquired a new position in shares of Applied Materials in the 2nd quarter worth $419,000. Finally, Heartland Bank & Trust Co acquired a new stake in shares of Applied Materials during the second quarter worth $396,000. 80.56% of the stock is owned by institutional investors and hedge funds.

Applied Materials Company Profile

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.