Applied Materials (NASDAQ:AMAT) Shares Up 1.4% - Is It a Good Time to Buy?

Shares of Applied Materials, Inc. (NASDAQ:AMAT) gained 1.4% during mid-day trading on Friday, reaching a high of $184.24 before closing at $184.06. Trading volume was around 743,585 shares, which is significantly lower than the average daily volume of 6,061,102 shares. The previous closing price was $181.58.

Several analysts have weighed in on Applied Materials recently. Stifel Nicolaus lowered their price target from $275.00 to $270.00 while maintaining a "buy" rating on the stock as of August 16th. Morgan Stanley shifted their price target down from $224.00 to $185.00, assigning an "equal weight" rating on September 17th. Meanwhile, Wells Fargo & Company reduced their target from $260.00 to $235.00, also categorizing the stock as "overweight" on October 3rd. Citigroup modified their price prediction from $240.00 to $217.00, giving it a "buy" rating as of September 16th. Lastly, Mizuho decreased their target from $245.00 to $225.00, tagging it as "outperform" on September 20th. A total of eight investment analysts have rated the stock with a hold rating, while fifteen have suggested it as a buy. MarketBeat data indicates that Applied Materials has an average rating of "Moderate Buy" alongside an average price target of $229.14.

Performance Overview

Currently, the stock's fifty-day moving average is $192.04, while the 200-day moving average is at $207.74. The company's quick ratio stands at 2.09, the current ratio at 2.86, and the debt-to-equity ratio is 0.33. Applied Materials boasts a market capitalization of $152.71 billion, a PE ratio of 20.68, a price-to-earnings growth ratio of 2.53, and a beta of 1.54.

On August 15th, the company shared its quarterly earnings report, indicating an earnings per share (EPS) of $2.12. This figure exceeded analysts' expectations of $2.02 by $0.10. Revenue for the quarter reached $6.78 billion, which was above the consensus estimate of $6.68 billion. The company also noted a healthy return on equity of 39.99% and a net margin of 27.74%, with revenue increasing 5.5% year-over-year compared to the same quarter last year, where the EPS was reported at $1.90. Analysts project that Applied Materials will achieve an EPS of 8.51 for the current fiscal year.

Dividend Announcement

Applied Materials has declared a quarterly dividend that will be distributed on December 12th to investors on record as of November 21st. This dividend amounts to $0.40, translating to an annualized dividend of $1.60, which yields 0.86%. The ex-dividend date is also set for November 21st. The company's current dividend payout ratio stands at 17.98%.

Institutional Investor Activity

About Applied Materials

Applied Materials, Inc. specializes in providing manufacturing equipment, services, and software for the semiconductor, display, and related sectors. The company operates through three main segments: Semiconductor Systems, Applied Global Services, and Display and Adjacent Markets. The Semiconductor Systems segment is focused on the development, production, and sale of equipment needed for semiconductor chip manufacturing.

If you are considering an investment in Applied Materials, it is worth noting that while the stock has a "Moderate Buy" rating among analysts, there may be other stocks that could potentially offer better investment prospects.

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