Applied Materials Inc. (AMAT): What Technical Indicators Show

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SNOW Stock

Applied Materials Inc. (NASDAQ:AMAT) saw an upside of 4.11% to close Monday at $114.15 after adding $4.5 on the day. The 5-day average trading volume is 5,658,960 shares of the company’s common stock. It has gained $114.91 in the past week and touched a new high 3 times within the past 5 days. An average of 5,730,730 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 6,682,940.

AMAT’s 1-month performance is 10.29% or $16.93 on its low of $93.68 reached on 12/28/22. The company’s shares have touched a 52-week low of $71.12 and high of $145.16, with the stock’s rally to the 52-week high happening on 01/23/23. YTD, AMAT has achieved 17.23% or $16.78 and has reached a new high 7 times. However, the current price is down -21.36% from the 52-week high price.


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Insider Transactions

AMAT stock investors last saw insider trading activity on Sep 14.Deane Timothy M (GVP, Applied Global Services) most recently sold 29 shares at $91.46 per share on Sep 14. This transaction cost the insider $2,652. Senior Vice President, CTO, Nalamasu Omkaram, sold 200 shares at a price of $94.47 on Jul 15. Then, on Jul 07, SVP, CLO Little Teri A. sold 10,000 shares at a price of $89.50 per share. This transaction amounted to $895,000.

Valuation Metrics

AMAT stock has a beta of 1.58. Moving on to other valuation ratios, the trailing price-to-sales (P/S) ratio is 3.62 while the price-to-book (PB) in the most recent quarter is 7.98, with the price to cash flow ratio at 24.95.

Applied Materials Inc.’s quick ratio for the period ended July 30 was 1.40, with the current ratio over the same period at 2.20. As well, the company’s long term debt to equity for the quarter ending July 30 was 0.45, while the total debt to equity was 0.45. In terms of profitability, the gross margin trailing 12 months is 46.50%. The firm’s gross profit as reported stood at $11.99 billion against revenue of $25.79 billion.

Earnings Surprise

For the quarterly period ending July 30 this year, Applied Materials Inc.’s cash and short-term investments amounted to $586.0 million against total debt of $5.86 billion. Net income and sales went up compared to those figures reported in the previous quarter. Net income shrunk -7.61% to $1.59 billion, while revenue of $1.61 billion was -0.94% off the previous quarter. Analysts expected AMAT to announce $1.79 per share in earnings in its latest quarter, but it posted $1.94, representing a 8.40% surprise. EBITDA for the quarter stood at more than $2.12 billion. AMAT stock balance sheet for the quarter ending July 30 shows that total liabilities totaled 14.53 billion, with total debt at $5.86 billion. Shareholders hold equity totaling $844.14 million.

Let’s look briefly at Applied Materials Inc. (AMAT) price momentum from a technical analysis perspective. The 9-day relative strength index as at close on 23 January was 70.32% to suggest the stock is trending Overbought, with historical volatility in this time period at 31.99%.

The stock’s 5-day moving average is $109.82, reflecting a +3.81% or $4.18 change from its current price. AMAT is currently trading +7.80% above its 20-day SMA, +18.25% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 by +17.13% and SMA200 by-6.21%.

Stochastic %K and %D was 81.44% and 79.38% and the average true range (ATR) pointed at 3.84. The RSI (14) points at 65.35%, while the 14-day stochastic is at 95.98% with the period’s ATR at 3.80. The stock’s 9-day MACD Oscillator is pointing at 0.28 and 3.41 on the 14-day charts.

Analyst Ratings

In the most recent analyst report for Applied Materials Inc. (NASDAQ: AMAT), Barclays downgraded it to an Underweight rating. They previously had an Equal weight rating on the stock.

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