Applied Materials (NASDAQ:AMAT) Stock Price Down 6.4% – What’s Next?

Applied Materials, Inc. (NASDAQ:AMAT)’s stock price traded down 6.4% during mid-day trading on Tuesday . The stock traded as low as $198.15 and last traded at $200.13. 3,671,689 shares traded hands during mid-day trading, a decline of 39% from the average session volume of 5,994,676 shares. The stock had previously closed at $213.89.

Analyst Upgrades and Downgrades

Several equities analysts have weighed in on the company. Susquehanna cut their target price on Applied Materials from $215.00 to $190.00 and set a “neutral” rating on the stock in a research note on Friday, October 11th. Morgan Stanley reduced their price objective on shares of Applied Materials from $224.00 to $185.00 and set an “equal weight” rating on the stock in a research note on Tuesday, September 17th. Cantor Fitzgerald reiterated an “overweight” rating and issued a $250.00 target price on shares of Applied Materials in a report on Tuesday, October 8th. Needham & Company LLC reissued a “buy” rating and issued a $260.00 price target on shares of Applied Materials in a report on Friday, August 16th. Finally, Dbs Bank downgraded Applied Materials from a “strong-buy” rating to a “hold” rating in a research note on Monday, September 16th. Eight investment analysts have rated the stock with a hold rating and fifteen have assigned a buy rating to the company’s stock. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $229.14.

Applied Materials Stock Performance

The stock has a market capitalization of $151.72 billion, a P/E ratio of 21.06, a P/E/G ratio of 2.66 and a beta of 1.54. The stock has a 50 day simple moving average of $195.86 and a two-hundred day simple moving average of $209.55. 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 released its earnings results on Thursday, August 15th. The manufacturing equipment provider reported $2.12 earnings per share for the quarter, beating the consensus estimate of $2.02 by $0.10. Applied Materials had a net margin of 27.74% and a return on equity of 39.99%. The business had revenue of $6.78 billion during the quarter, compared to analysts’ expectations of $6.68 billion. During the same period last year, the business earned $1.90 earnings per share. The firm’s revenue was up 5.5% on a year-over-year basis. On average, equities analysts forecast that Applied Materials, Inc. will post 8.49 EPS for the current fiscal year.

Applied Materials Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, December 12th. Shareholders of record on Thursday, November 21st will be given a dividend of $0.40 per share. This represents a $1.60 dividend on an annualized basis and a yield of 0.87%. The ex-dividend date of this dividend is Thursday, November 21st. Applied Materials’s dividend payout ratio (DPR) is presently 18.39%.

Institutional Investors Weigh In On Applied Materials

A number of large investors have recently added to or reduced their stakes in AMAT. Vanguard Group Inc. raised its holdings in Applied Materials by 1.2% in the 1st quarter. Vanguard Group Inc. now owns 75,008,622 shares of the manufacturing equipment provider’s stock valued at $15,469,028,000 after acquiring an additional 891,446 shares during the period. Lazard Asset Management LLC increased its stake in shares of Applied Materials by 10.4% during the first quarter. Lazard Asset Management LLC now owns 5,189,202 shares of the manufacturing equipment provider’s stock worth $1,070,167,000 after purchasing an additional 490,597 shares during the period. American Century Companies Inc. lifted its holdings in Applied Materials by 1.6% during the 2nd quarter. American Century Companies Inc. now owns 5,084,186 shares of the manufacturing equipment provider’s stock worth $1,199,817,000 after purchasing an additional 81,151 shares during the last quarter. Van ECK Associates Corp boosted its stake in Applied Materials by 9.5% in the 2nd quarter. Van ECK Associates Corp now owns 5,061,739 shares of the manufacturing equipment provider’s stock valued at $1,194,520,000 after purchasing an additional 438,691 shares during the period. Finally, Swedbank AB grew its holdings in Applied Materials by 2.6% in the 3rd quarter. Swedbank AB now owns 4,244,566 shares of the manufacturing equipment provider’s stock valued at $857,615,000 after buying an additional 108,827 shares in the last quarter. Institutional investors own 80.56% of the company’s stock.

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.