The stock of Applied Materials Inc. (NASDAQ:AMAT) increased by $3.06 on Monday to finish at $141.89, up 2.20 percent. The last five days have seen an average of 4,460,380 shares of common stock traded. 20 times new highs were reached in the current year, with a gain of $44.51. The average number of shares traded over the last 20 days was 5,790,335, while the average volume over the last 50 days totaled 5,641,332.
AMAT stock dropped -0.60% since last month. On 07/20/23, the company’s shares reached a one-month low of $133.52. The stock touched a high of $153.28 on 07/28/23, after rallying from a low of $71.12 in 52 weeks. The price of AMAT stock has risen by 45.71% or $44.51 this year, reaching a new high 20 times. Still, the stock price is down -7.43% from the 52-week high.
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Insider Transactions
AMAT stock investors should be aware that Applied Materials Inc. (AMAT) stock had its last reported insider trading activity 39 days ago on Jul 07. On Jul 07, SVP, CLO Little Teri A. sold 10,000 shares at $142.00 each. This transaction resulted in the insider making $1,420,000. On Jun 09, Deane Timothy M sold 7,500 shares at a price of US$137.30. After the transaction, the insider now owns 100,759 shares. Senior Vice President, CTO Nalamasu Omkaram had earlier sold 29,444 shares on Mar 20 for $124.70 a share. The transaction was completed for $3,671,667.
Valuation Metrics
Applied Materials Inc. (AMAT) has a trailing price-to-earnings (P/E) ratio of 18.71. Beta for the stock is 1.61. There are also a few other valuation ratios worth considering, including the trailing price-to-sales (P/S) ratio of 4.66, the price-to-book (PB) ratio of 8.47, and the price-to-cash flow ratio of 20.99.
Company paid $0.32 per share in dividends, remained unchanged from $0.32 last year.
Financial Health
For the three months ended April 29, Applied Materials Inc.’s quick ratio was 1.50, while its current ratio was 2.30, indicating its ability to pay off its debt. The company’s long-term debt to equity ratio for the quarter ending April 29 is 0.39, and the total debt to equity ratio is 0.41. As far as profitability goes, gross margin for the trailing twelve months is 46.30% percent. Applied Materials Inc.’s operating margin stood at 29.30% for the same period. Based on annual data, it had gross profit of $11.99 billion and revenue of $25.79 billion.
Investors will also look at the performance of the company’s management in order to determine the potential profitability of their investment. AMAT’s return on assets (ROA) during the last 12 months has been 23.60%. There was a 38.00% return on investment (ROI) in the past year. In the meantime, the return on equity (ROE) for the last 12 months was 50.10%.
Earnings Surprise
According to Applied Materials Inc.’s quarterly financial report for the quarter that ended April 29, it had $5.46 billion in total debt versus $510.0 million in cash and short-term investments. A lower net income was reported in the quarter under review than the previous quarter. Net income for the quarter came in at $6.63 billion, while revenues rose by 5.81% to $6.74 billion. It was predicted that Applied Materials Inc.’s quarterly earnings would be $1.78, but it ended up being $1.64, beating the consensus by 8.50%. EBITDA was $2.04 billion for the quarter. At the end of Applied Materials Inc.’s most recent quarter ended April 29, its liabilities totaled 14.96 billion, while its total debt was $6.12 billion. Equity owned by shareholders amounts to $839.75 million.
Technical Picture
Here’s a quick look at Applied Materials Inc.’s (AMAT) price momentum from a technical perspective. As of 14 August, the RSI 9-day stood at 44.42%, suggesting the stock is Neutral, with a 35.60% historical volatility rate.
The stochastic %K and %D were 30.16% and 42.33% respectively, while the average true range (ATR) was 4.59. Based on the 14-day stochastic reading of 30.84%, the RSI (14) reading is 47.71%. On the 9-day MACD Oscillator, the stock is at -3.74, and the 14-day reading is at -4.72.
Analyst Ratings
Applied Materials Inc. (NASDAQ: AMAT) was downgraded by New Street to a a Neutral rating in its latest research report. The stock was previously rated as a a Buy. Analysts have assigned Applied Materials Inc. (AMAT) an Overweight rating. AMAT is a stock that is recommended for selling by 1 brokerage firm, while 9 companies recommend holding. The stock is underweighted by 1 analyst. Among the analysts who rate the stock, 3 rates it overweight and 16 others recommend it as a buy.
What is AMAT’s price target for the next 12 months?
The current consensus forecast for the stock is between $112.00 and $175.00, with a median target price of $147.50. In analyzing these forecasts, the average price target given by analysts for Applied Materials Inc. (AMAT) is $145.91.
