A Closer Look At Applied Materials Inc. (AMAT)’s Financials

As of Thursday close, Applied Materials Inc.’s (NASDAQ:AMAT) stock was up $2.05, moving up 1.88 percent to $111.06. The average number of shares traded per day over the past five days has been 5,212,120 shares. 4 times new highs have been achieved over the past 5 days, with a $5.90 gain in that time frame. In the last twenty days, the average volume was 5,993,265, while in the previous 50 days, it was 7,287,308.

Since last month, AMAT stock rose 28.30%. Shares of the company fell to $82.67 on 07/05/22, the lowest level in the past month. A 52-week high of $167.06 was reached on 01/14/22 after having rallying from a 52-week low of $82.67. Since the beginning of this year, AMAT’s stock price has dropped by -29.42% or -$46.30, and marked a new high 4 times. However, the stock has declined by -33.52% since its 52-week high.

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Applied Materials Inc. (AMAT) last reported insider trading activity 29 days ago on Jul 07. Little Teri A., the SVP, CLO of the company, disposed of 10,000 shares for $89.50 on Jul 07. It resulted in a $895,000 divestment by the insider. Little Teri A. sold 15,000 shares at an average price of $86.30 on Jul 06. The insider now owns 93,169 shares following the transaction. On Dec 01, President and CEO DICKERSON GARY E sold 300,000 shares at $152.79 apiece. The transaction was valued at $45,838,409.

Valuation Metrics

Right now, Applied Materials Inc. (AMAT) has a P/E ratio of about 14.82. The stock’s beta is 1.52. Besides these, the trailing price-to-sales (P/S) ratio of 3.80, the price-to-book (PB) ratio of 8.42, and the price-to-cash flow ratio of 21.68 may also be considered.

The latest dividend of $0.26 per share was paid out, remained unchanged from last year’s $0.26. On Friday March 11 2022, a $0.02 dividend increase was announced.

Financial Health

In the three months ended April 29, Applied Materials Inc.’s quick ratio stood at 1.50, while its current ratio was 2.30, showing that the company is able to pay off its debt. According to company report, the long-term debt-to-equity ratio for the quarter ending April 29 was 0.47, and the total debt-to-equity ratio was 0.47. On the profitability front, the trailing twelve-month gross margin is 47.50% percent. In the year ended April 29, EBITDA margin amounted to 32.98%, whereas operating margins totaled 31.80%. Based on annual data, AMAT earned $10.91 billion in gross profit and brought in $23.06 billion in revenue.

A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was 33.90%. Return on equity (ROE) for the past 12 months was 56.60%.

In Applied Materials Inc.’s quarter-end financial report for April 29, it reported total debt of $5.46 billion against cash and short-term investments of $591.0 million. According to the earnings report, the company had a lower net income in the recent quarter than it did in the previous quarter. AMAT’s revenue rose 10.62% to $6.27 billion during the quarter, while net income inched up to $6.25 billion. While analysts expected Applied Materials Inc. to report $1.9 quarterly earnings, the actual figure was $1.85 per share, beating the consensus estimate by -2.60%. During the quarter, the company generated $2.0 billion in EBITDA. The liabilities of Applied Materials Inc. were 13.88 billion at the end of its most recent quarter ended April 29, and its total debt was $5.85 billion. The value of shareholders’ equity is $869.95 million.

Technical Picture

This quick technical analysis looks at Applied Materials Inc.’s (AMAT) price momentum. With a historical volatility rate of 32.12%, the RSI 9-day stood at 74.76% on 04 August.

With respect to its five-day moving average, the current Applied Materials Inc. price is up by +5.61% percent or $5.90. At present, AMAT shares trade +22.38% above its 20-day simple moving average and -10.17% percent below its 100-day simple moving average. However, the stock is currently trading approximately +1.03% above its SMA50 and -16.67% below its SMA200.

Stochastic coefficient K was 93.43% and Stochastic coefficient D was 93.13%, while ATR was 3.77. Given the Stochastic reading of 99.30% for the 14-day period, the RSI (14) reading has been calculated as 67.24%. As of today, the MACD Oscillator reading stands at 3.25, while the 14-day reading stands at 5.13.

Analyst Ratings

UBS reiterated its a Neutral rating on Applied Materials Inc. (NASDAQ: AMAT) in a note to investors. The analysts firm has however raised their price target to $160, representing a possible 25.96% increase in the stock price. Applied Materials Inc. (AMAT) has been rated Overweight by analysts. According to 0 brokerage firms, AMAT is a sell, and 8 firms recommend it is a Hold. There are 0 analysts who say the stock is underweight. A total of 3 analysts rate Applied Materials Inc. stock as buy, with 19 recommending it as overweight.

With a median target price of $125.55, the current consensus forecast for the stock is $95.00 – $197.00. Based on these forecasts, analysts predict Applied Materials Inc. (AMAT) will achieve an average price target of $133.04.


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