Applied Materials Inc. (NASDAQ:AMAT) finished Thursday with an addition of $3.16 to close at $138.22, an upside of 2.34 percent. An average of 5,488,680 shares of common stock have been traded in the last five days. There was a gain of $3.03 in the past week, and it reached a new high 27 times over the past 12 months. The last 20 days have seen an average of 5,592,435 shares traded, while the 50-day average volume stands at 5,695,032.
AMAT stock has decreased by -7.84% in the last month. The company shares reached their 1-month lowest point of $133.10 on 09/27/23. With the stock rallying to its 52-week high on 09/06/23, shares of the company touched a low of $71.12 and a high of $155.26 in 52 weeks. It has reached a new high 24 times so far this year and achieved 41.94% or $40.84 in price. In spite of this, the price is down -10.98% from the 52-week high.
Insider Transactions
AMAT stock investors should be aware that Applied Materials Inc. (AMAT) stock had its last reported insider trading activity 30 days ago on Aug 30. In this transaction, the insider spent $150,040. SVP, CLO, Little Teri A., disposed of 10,000 shares at a price of $142.00 on Jul 07. The insider now owns more than $1,420,000 worth of shares. Prior to that, GVP, Applied Global Services Deane Timothy M went on to Sale 7,500 shares at $137.30 each on Jun 09. An amount of $1,029,750 was transacted.
Valuation Metrics
Applied Materials Inc. (AMAT) has a trailing price-to-earnings (P/E) ratio of 18.22. The stock’s beta is 1.61. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 4.37, the price-to-book (PB) ratio at 7.66, and the price-to-cash flow ratio at 16.56.
Financial Health
The quick ratio of Applied Materials Inc. for the three months ended July 30 was 1.59, 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 0.38 and a total debt to equity ratio of 0.40 for the quarter ending July 30. Applied Materials Inc.’s EBITDA margin for the year ending July 30 is 31.69%, while its operating margin for the same period stands at 28.78%. 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 22.78%.
Earnings Surprise
For the three-month period that ended July 30, 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 $1.56 billion in the quarter, while revenues of $1.57 billion were shrunk -2.95%. The analyst consensus anticipated Applied Materials Inc.’s latest quarter earnings to come in at $1.74 per share, but it turned out to be $1.9, a 9.20% surprise. For the quarter, EBITDA amounted to $1.94 billion. Shareholders own equity worth $836.53 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 28 September was 44.75%, suggesting the stock is Neutral, with historical volatility in this time frame at 22.09%.
As of today, AMAT’s price is $136.02 +2.24% or $3.03 from its 5-day moving average. AMAT is currently trading -8.43% lower than its 20-day SMA and +19.09% higher than its 100-day SMA. However, the stock’s current price level is -2.51% below the SMA50 and +28.77% above the SMA200.
The stochastic %K and %D were 15.05% and 9.73%, respectively, and the average true range (ATR) was 3.75. With the 14-day stochastic at 30.28% and the average true range at 3.88, the RSI (14) stands at 43.93%. The stock has reached -0.91 on the 9-day MACD Oscillator while the 14-day reading was at -3.38.
Analyst Ratings
Wolfe Research launched coverage on Applied Materials Inc. (NASDAQ: AMAT) in its analyst report released on September 15, 2023. The firm assigned the stock an Outperform rating. 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 4 analysts, while 16 others rate it as a “buy”.
