Applied Materials’ (AMAT) “Outperform” Rating Reaffirmed at Royal Bank of Canada

Royal Bank of Canada restated their outperform rating on shares of Applied Materials (NASDAQ:AMAT) in a research note issued to investors on Thursday, The Fly reports. They currently have a $75.00 price objective on the manufacturing equipment provider’s stock.

AMAT has been the subject of a number of other reports. Wells Fargo & Co boosted their target price on shares of Applied Materials from $70.00 to $78.00 and gave the stock a positive rating in a report on Thursday. BidaskClub upgraded shares of Applied Materials from a hold rating to a buy rating in a report on Friday, February 7th. Susquehanna Bancshares restated a buy rating and set a $80.00 price objective (up previously from $70.00) on shares of Applied Materials in a report on Friday, November 15th. ValuEngine downgraded shares of Applied Materials from a hold rating to a sell rating in a report on Friday, January 3rd. Finally, UBS Group downgraded shares of Applied Materials from a neutral rating to a sell rating in a report on Wednesday, November 27th. Three equities research analysts have rated the stock with a sell rating, four have issued a hold rating and nineteen have issued a buy rating to the company. The stock has a consensus rating of Buy and a consensus target price of $71.04.

Applied Materials stock traded down $0.52 during trading hours on Thursday, reaching $66.85. The stock had a trading volume of 8,094,968 shares, compared to its average volume of 7,525,363. The company has a market cap of $57.80 billion, a price-to-earnings ratio of 23.37, a PEG ratio of 2.01 and a beta of 1.64. The company has a debt-to-equity ratio of 0.57, a current ratio of 2.30 and a quick ratio of 1.51. The business’s 50 day moving average price is $61.78 and its 200-day moving average price is $55.12. Applied Materials has a 52 week low of $36.80 and a 52 week high of $69.44.

Applied Materials (NASDAQ:AMAT) last announced its earnings results on Wednesday, February 12th. The manufacturing equipment provider reported $0.98 EPS for the quarter, topping the Zacks’ consensus estimate of $0.92 by $0.06. The business had revenue of $4.16 billion during the quarter, compared to the consensus estimate of $4.11 billion. Applied Materials had a net margin of 18.52% and a return on equity of 35.13%. The firm’s revenue was up 10.9% on a year-over-year basis. During the same period in the previous year, the company posted $0.81 earnings per share. On average, sell-side analysts forecast that Applied Materials will post 3.82 EPS for the current fiscal year.

The company also recently announced a quarterly dividend, which will be paid on Wednesday, March 11th. Investors of record on Wednesday, February 19th will be given a $0.21 dividend. The ex-dividend date of this dividend is Tuesday, February 18th. This represents a $0.84 dividend on an annualized basis and a yield of 1.26%. Applied Materials’s dividend payout ratio is currently 27.63%.

In related news, CEO Gary E. Dickerson sold 1,000,000 shares of the company’s stock in a transaction that occurred on Tuesday, November 19th. The stock was sold at an average price of $61.11, for a total value of $61,110,000.00. The sale was disclosed in a document filed with the SEC, which is available at this link. Also, Director Stephen R. Forrest sold 3,000 shares of the company’s stock in a transaction that occurred on Monday, November 18th. The shares were sold at an average price of $62.86, for a total value of $188,580.00. The disclosure for this sale can be found here. In the last quarter, insiders sold 1,053,000 shares of company stock worth $64,335,080. 0.41% of the stock is owned by insiders.

Hedge funds and other institutional investors have recently modified their holdings of the stock. Rosenbaum Jay D. lifted its position in shares of Applied Materials by 18.9% during the 4th quarter. Rosenbaum Jay D. now owns 8,498 shares of the manufacturing equipment provider’s stock valued at $519,000 after buying an additional 1,348 shares in the last quarter. Allworth Financial LP lifted its position in shares of Applied Materials by 8.2% during the 4th quarter. Allworth Financial LP now owns 4,531 shares of the manufacturing equipment provider’s stock valued at $277,000 after buying an additional 342 shares in the last quarter. BBVA USA Bancshares Inc. lifted its position in shares of Applied Materials by 6.0% during the 4th quarter. BBVA USA Bancshares Inc. now owns 35,473 shares of the manufacturing equipment provider’s stock valued at $2,165,000 after buying an additional 2,008 shares in the last quarter. HGK Asset Management Inc. purchased a new position in shares of Applied Materials during the 3rd quarter valued at approximately $5,090,000. Finally, Altium Wealth Management LLC purchased a new position in shares of Applied Materials during the 4th quarter valued at approximately $202,000. Hedge funds and other institutional investors own 79.81% of the company’s stock.

About Applied Materials

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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