Applied Materials Inc. (NASDAQ:AMAT) finished Thursday with a subtraction of -$5.48 to close at $142.52, a downside of -3.70 percent. An average of 7,320,420 shares of common stock have been traded in the last five days. There was a gain of $4.93 in the past week, and it reached a new high 16 times over the past 12 months. The last 20 days have seen an average of 5,336,780 shares traded, while the 50-day average volume stands at 5,866,496.
AMAT stock has increased by 2.52% in the last month. The company shares reached their 1-month lowest point of $135.53 on 08/18/23. With the stock rallying to its 52-week high on 07/28/23, shares of the company touched a low of $71.12 and a high of $153.28 in 52 weeks. It has reached a new high 20 times so far this year and achieved 46.35% or $45.14 in price. In spite of this, the price is down -7.02% 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 49 days ago on Jul 07. In this transaction, the insider spent $1,420,000. GVP, Applied Global Services, Deane Timothy M, disposed of 7,500 shares at a price of $137.30 on Jun 09. The insider now owns more than $1,029,750 worth of shares. Prior to that, Senior Vice President, CTO Nalamasu Omkaram went on to Sale 29,444 shares at $124.70 each on Mar 20. An amount of $3,671,667 was transacted.
Valuation Metrics
Applied Materials Inc. (AMAT) has a trailing price-to-earnings (P/E) ratio of 18.80. The stock’s beta is 1.60. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 4.33, the price-to-book (PB) ratio at 8.50, and the price-to-cash flow ratio at 28.28.
The company has a payout ratio of 10.10%. The company’s most recent quarterly dividend payment was $0.32 a share, without any change from last year. Its latest increase dividend $0.06 reported on Friday March 10 2023.
Financial Health
The quick ratio of Applied Materials Inc. for the recent quarter was 1.50, and the current ratio was 2.30, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.39 and a total debt to equity ratio of 0.41 for the recent quarter. Applied Materials Inc.’s EBITDA margin is 31.69%, while its operating margin for the same period stands at 29.20%. Its gross profit as reported stood at $11.99 billion compared to revenue of $25.79 billion.
For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Applied Materials Inc.’s return on assets was 23.50%.
Earnings Surprise
For the recent quarter, Applied Materials Inc. had $5.46 billion in total debt. In the quarter under review, the net income was down than the previous quarter. The company posted a net income of $1.57 billion in the quarter, while revenues of $1.72 billion were grew 2.48%. Shareholders own equity worth $839.75 million.
Technical Picture
From a technical analysis perspective, let’s take a brief look at Applied Materials Inc. (AMAT) price momentum. RSI 9-day as of the close on 24 August was 46.51%, suggesting the stock is Neutral, with historical volatility in this time frame at 38.42%.
As of today, AMAT’s price is $145.96 +3.58% or $4.93 from its 5-day moving average. AMAT is currently trading -2.48% lower than its 20-day SMA and +16.03% higher than its 100-day SMA. However, the stock’s current price level is +0.51% above the SMA50 and +55.42% above the SMA200.
The stochastic %K and %D were 67.82% and 72.98%, respectively, and the average true range (ATR) was 4.86. With the 14-day stochastic at 44.75% and the average true range at 4.66, the RSI (14) stands at 48.52%. The stock has reached 3.06 on the 9-day MACD Oscillator while the 14-day reading was at 2.22.
Analyst Ratings
Susquehanna reiterated its a Neutral rating on Applied Materials Inc. (NASDAQ: AMAT), but raised their price target to $112, indicating a potential price decrease of -27.25% for the stock. The consensus rating for Applied Materials Inc. (AMAT) among analysts is Overweight. According to current brokerage recommendations, 1 brokerage firm advise that investors sell AMAT, while 9 suggest investors hold. There are 2 analysts who rate the stock as underweight. The stock is rated overweight by 3 analysts, while 15 others rate it as a “buy”.
What is AMAT’s price target for the next 12 months?
Analysts predict a range of price targets between $120.00 and $175.00, with a median target of $160.00. Taking a look at these predictions, the average price target given by analysts for Applied Materials Inc. (AMAT) stock is $156.50.
