Applied Materials (NASDAQ:AMAT) Shares Down 6.4% – Here’s Why

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

Wall Street Analyst Weigh In

A number of research analysts recently issued reports on the stock. StockNews.com cut shares of Applied Materials from a “buy” rating to a “hold” rating in a research note on Saturday, September 14th. Deutsche Bank Aktiengesellschaft lowered their price target on Applied Materials from $260.00 to $230.00 and set a “hold” rating for the company in a report on Friday, August 16th. Stifel Nicolaus reduced their price objective on Applied Materials from $275.00 to $270.00 and set a “buy” rating on the stock in a research note on Friday, August 16th. UBS Group decreased their target price on Applied Materials from $220.00 to $210.00 and set a “neutral” rating on the stock in a research report on Thursday, September 12th. Finally, Morgan Stanley dropped their target price on shares of Applied Materials from $224.00 to $185.00 and set an “equal weight” rating for the company in a report on Tuesday, September 17th. Eight investment analysts have rated the stock with a hold rating and fifteen have given a buy rating to the stock. According to data from MarketBeat, Applied Materials presently has an average rating of “Moderate Buy” and an average target price of $229.14.

Applied Materials Trading Down 0.7 %

The firm has a market cap of $151.72 billion, a PE ratio of 21.06, a price-to-earnings-growth ratio of 2.66 and a beta of 1.54. The company has a debt-to-equity ratio of 0.33, a quick ratio of 2.09 and a current ratio of 2.86. The stock has a 50-day simple moving average of $195.86 and a two-hundred day simple moving average of $209.55.

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

Applied Materials Dividend Announcement

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

Institutional Investors Weigh In On Applied Materials

Several large investors have recently added to or reduced their stakes in AMAT. JT Stratford LLC boosted its stake in Applied Materials by 0.4% in the first quarter. JT Stratford LLC now owns 10,890 shares of the manufacturing equipment provider’s stock valued at $2,246,000 after acquiring an additional 48 shares in the last quarter. Financial Management Professionals Inc. raised its position in shares of Applied Materials by 5.6% in the first quarter. Financial Management Professionals Inc. now owns 924 shares of the manufacturing equipment provider’s stock valued at $191,000 after buying an additional 49 shares during the last quarter. WASHINGTON TRUST Co boosted its stake in Applied Materials by 3.3% during the second quarter. WASHINGTON TRUST Co now owns 1,556 shares of the manufacturing equipment provider’s stock worth $367,000 after buying an additional 49 shares during the last quarter. Optimum Investment Advisors raised its stake in Applied Materials by 1.3% during the second quarter. Optimum Investment Advisors now owns 4,016 shares of the manufacturing equipment provider’s stock worth $948,000 after purchasing an additional 50 shares during the period. Finally, SlateStone Wealth LLC increased its position in shares of Applied Materials by 4.7% during the 2nd quarter. SlateStone Wealth LLC now owns 1,105 shares of the manufacturing equipment provider’s stock worth $261,000 after purchasing an additional 50 shares during the last quarter. 80.56% of the stock is owned by hedge funds and other institutional investors.

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.