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

Applied Materials, Inc. (NASDAQ:AMAT)’s stock price gapped up prior to trading on Wednesday . The stock had previously closed at $172.85, but opened at $180.00. Applied Materials shares last traded at $174.75, with a volume of 985,225 shares trading hands.

Wall Street Analysts Forecast Growth

Several research analysts have weighed in on the company. Morgan Stanley reiterated an “underweight” rating and issued a $164.00 target price (down from $179.00) on shares of Applied Materials in a research note on Thursday, December 5th. The Goldman Sachs Group dropped their price objective on Applied Materials from $230.00 to $202.00 and set a “buy” rating for the company in a research note on Friday, January 10th. Bank of America decreased their price objective on Applied Materials from $220.00 to $210.00 and set a “buy” rating on the stock in a research note on Friday, November 15th. Stifel Nicolaus cut their target price on shares of Applied Materials from $270.00 to $250.00 and set a “buy” rating for the company in a research note on Tuesday, November 12th. Finally, 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. One research analyst has rated the stock with a sell rating, seven have issued a hold rating and fifteen have issued a buy rating to the company’s stock. According to MarketBeat.com, Applied Materials has a consensus rating of “Moderate Buy” and a consensus price target of $218.71.

Applied Materials Stock Performance

The firm has a market capitalization of $147.86 billion, a PE ratio of 21.11, a price-to-earnings-growth ratio of 1.99 and a beta of 1.53. The company has a debt-to-equity ratio of 0.29, a current ratio of 2.51 and a quick ratio of 1.87. The stock has a 50-day moving average price of $174.24 and a 200-day moving average price of $187.55.

Applied Materials (NASDAQ:AMAT) last issued its earnings results 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. The firm had revenue of $7.05 billion for the quarter, compared to analysts’ expectations of $6.96 billion. Applied Materials had a net margin of 26.41% and a return on equity of 39.26%. Applied Materials’s revenue was up 4.8% on a year-over-year basis. During the same quarter last year, the company posted $2.12 earnings per share. On average, research analysts expect that Applied Materials, Inc. will post 9.38 EPS for the current fiscal year.

Applied Materials Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, March 13th. Stockholders of record on Thursday, February 20th will be issued a dividend of $0.40 per share. This represents a $1.60 annualized dividend and a dividend yield of 0.88%. The ex-dividend date of this dividend is Thursday, February 20th. Applied Materials’s dividend payout ratio (DPR) is 18.58%.

Institutional Investors Weigh In On Applied Materials

Several large investors have recently made changes to their positions in AMAT. Crews Bank & Trust bought a new position in shares of Applied Materials in the fourth quarter valued at approximately $28,000. YANKCOM Partnership acquired a new stake in Applied Materials in the fourth quarter worth approximately $32,000. Clean Yield Group acquired a new position in shares of Applied Materials during the 3rd quarter valued at $33,000. First PREMIER Bank raised its stake in shares of Applied Materials by 326.3% in the 3rd quarter. First PREMIER Bank now owns 162 shares of the manufacturing equipment provider’s stock worth $33,000 after buying an additional 124 shares in the last quarter. Finally, MidAtlantic Capital Management Inc. acquired a new stake in shares of Applied Materials in the third quarter valued at $37,000. Institutional investors and hedge funds 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.