Applied Materials (NASDAQ:AMAT) Shares Gap Down on Analyst Downgrade

Applied Materials, Inc. (NASDAQ:AMAT) shares gapped down prior to trading on Friday after Craig Hallum downgraded the stock from a buy rating to a hold rating. The stock had previously closed at $48.36, but opened at $47.16. Craig Hallum now has a $46.00 price target on the stock. Applied Materials shares last traded at $46.63, with a volume of 17,728,381 shares traded.

A number of other equities research analysts have also recently commented on the company. DA Davidson cut Applied Materials from a “buy” rating to a “neutral” rating and lowered their target price for the company from $55.00 to $45.00 in a report on Monday, July 8th. ValuEngine lowered Applied Materials from a “buy” rating to a “hold” rating in a research note on Tuesday, August 6th. UBS Group increased their price target on Applied Materials from $45.00 to $49.00 and gave the stock a “neutral” rating in a research note on Friday, May 17th. Citigroup increased their price target on Applied Materials from $51.00 to $52.00 and gave the stock a “buy” rating in a research note on Friday, May 17th. Finally, Susquehanna Bancshares raised Applied Materials from a “neutral” rating to a “positive” rating and increased their price target for the stock from $34.00 to $60.00 in a research note on Wednesday, May 15th. Twelve investment analysts have rated the stock with a hold rating and fourteen have issued a buy rating to the stock. Applied Materials has a consensus rating of “Buy” and an average target price of $50.90.

A number of hedge funds and other institutional investors have recently made changes to their positions in AMAT. Squar Milner Financial Services LLC grew its stake in shares of Applied Materials by 190.8% during the first quarter. Squar Milner Financial Services LLC now owns 698 shares of the manufacturing equipment provider’s stock valued at $27,000 after acquiring an additional 458 shares in the last quarter. Princeton Global Asset Management LLC acquired a new stake in shares of Applied Materials during the first quarter valued at about $27,000. Horan Capital Advisors LLC. acquired a new stake in shares of Applied Materials during the first quarter valued at about $31,000. Cable Hill Partners LLC grew its stake in shares of Applied Materials by 378.4% during the first quarter. Cable Hill Partners LLC now owns 799 shares of the manufacturing equipment provider’s stock valued at $32,000 after acquiring an additional 632 shares in the last quarter. Finally, Pinnacle Financial Partners Inc. acquired a new stake in shares of Applied Materials during the first quarter valued at about $33,000. Hedge funds and other institutional investors own 77.61% of the company’s stock.



The firm has a 50 day moving average price of $47.10 and a two-hundred day moving average price of $42.51. The company has a quick ratio of 1.77, a current ratio of 2.79 and a debt-to-equity ratio of 0.65. The company has a market capitalization of $44.99 billion, a price-to-earnings ratio of 10.48, a P/E/G ratio of 2.43 and a beta of 1.68.

Applied Materials (NASDAQ:AMAT) last announced its earnings results on Thursday, August 15th. The manufacturing equipment provider reported $0.74 earnings per share for the quarter, beating the consensus estimate of $0.70 by $0.04. The company had revenue of $3.56 billion during the quarter, compared to the consensus estimate of $3.53 billion. Applied Materials had a return on equity of 47.88% and a net margin of 22.10%. The company’s revenue was down 14.4% on a year-over-year basis. During the same period last year, the firm earned $1.20 earnings per share. Analysts predict that Applied Materials, Inc. will post 2.96 earnings per share for the current year.

The company also recently declared a quarterly dividend, which will be paid on Thursday, September 12th. Investors of record on Thursday, August 22nd will be paid a $0.21 dividend. The ex-dividend date of this dividend is Wednesday, August 21st. This represents a $0.84 dividend on an annualized basis and a yield of 1.80%. Applied Materials’s dividend payout ratio (DPR) is 18.88%.

Applied Materials Company Profile (NASDAQ:AMAT)

Applied Materials, Inc provides manufacturing equipment, services, and software to the semiconductor, display, and related industries. It 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.

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