As of Wednesday close, Applied Materials Inc.’s (NASDAQ:AMAT) stock was down -$0.74, moving down -0.54 percent to $136.97. The average number of shares traded per day over the past five days has been 7,413,180 shares. 1 time new highs have been achieved over the past 5 days, with a -$7.61 fall in that time frame. In the last twenty days, the average volume was 5,426,925, while in the previous 50 days, it was 5,746,120.
Since last month, AMAT stock retreated -7.93%. Shares of the company fell to $136.67 on 09/19/23, the lowest level in the past month. A 52-week high of $155.26 was reached on 09/06/23 after having rallying from a 52-week low of $71.12. Since the beginning of this year, AMAT’s stock price has risen by 40.66% or $39.59, and marked a new high 24 times. However, the stock has declined by -11.78% since its 52-week high.
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AMAT stock investors should be aware that Applied Materials Inc. (AMAT) stock had its last reported insider trading activity 22 days ago on Aug 30. Hill Brice, the SVP, CFO of the company, disposed of 1,000 shares for $150.04 on Aug 30. It resulted in a $150,040 divestment by the insider. Little Teri A. sold 10,000 shares at an average price of $142.00 on Jul 07. The insider now owns 69,504 shares following the transaction. On Jun 09, GVP, Applied Global Services Deane Timothy M sold 7,500 shares at $137.30 apiece. The transaction was valued at $1,029,750.
Valuation Metrics
Right now, Applied Materials Inc. (AMAT) has a P/E ratio of about 18.06. The stock’s beta is 1.61. Besides these, the trailing price-to-sales (P/S) ratio of 4.51, the price-to-book (PB) ratio of 7.61, and the price-to-cash flow ratio of 17.16 may also be considered.
The latest dividend of $0.32 per share was paid out, remained unchanged from last year’s $0.32.
Financial Health
In the three months ended July 30, Applied Materials Inc.’s quick ratio stood at 1.60, 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 July 30 was 0.37, and the total debt-to-equity ratio was 0.38. On the profitability front, the trailing twelve-month gross margin is 46.40% percent. In the year ended July 30, EBITDA margin amounted to 31.69%, whereas operating margins totaled 28.90%. Based on annual data, AMAT earned $11.99 billion in gross profit and brought in $25.79 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 38.00%. Return on equity (ROE) for the past 12 months was 47.00%.
In Applied Materials Inc.’s quarter-end financial report for July 30, it reported total debt of $5.46 billion. 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 fell -1.48% to $6.63 billion during the quarter, while net income inched up to $6.42 billion. While analysts expected Applied Materials Inc. to report $1.74 quarterly earnings, the actual figure was $1.9 per share, beating the consensus estimate by 9.20%. During the quarter, the company generated $1.94 billion in EBITDA. The liabilities of Applied Materials Inc. were 15.32 billion at the end of its most recent quarter ended July 30, and its total debt was $6.1 billion. The value of shareholders’ equity is $836.53 million.
Technical Picture
This quick technical analysis looks at Applied Materials Inc.’s (AMAT) price momentum. With a historical volatility rate of 24.40%, the RSI 9-day stood at 29.45% on 20 September.
With respect to its five-day moving average, the current Applied Materials Inc. price is down by -5.26% percent or -$7.61. At present, AMAT shares trade -7.36% below its 20-day simple moving average and +22.65% percent above its 100-day simple moving average. However, the stock is currently trading approximately -0.43% below its SMA50 and +28.00% above its SMA200.
Stochastic coefficient K was 8.80% and Stochastic coefficient D was 12.47%, while ATR was 4.09. Given the Stochastic reading of 1.61% for the 14-day period, the RSI (14) reading has been calculated as 36.73%. As of today, the MACD Oscillator reading stands at -3.97, while the 14-day reading stands at -7.56.
Analyst Ratings
Wolfe Research launched its rating on Applied Materials Inc. (NASDAQ: AMAT) to an Outperform in a note to investors on September 15, 2023. Applied Materials Inc. (AMAT) has been rated Overweight by analysts. According to 1 brokerage firm, AMAT is a sell, and 9 firms recommend it is a Hold. There are 2 analysts who say the stock is underweight. A total of 3 analysts rate Applied Materials Inc. stock as buy, with 16 recommending it as overweight.
With a median target price of $160.00, the current consensus forecast for the stock is $120.00 – $185.00. Based on these forecasts, analysts predict Applied Materials Inc. (AMAT) will achieve an average price target of $159.39.
