Applied Materials (NASDAQ:AMAT) Trading Down 2.3% – Should You Sell?

Applied Materials, Inc. (NASDAQ:AMAT) dropped 2.3% on Thursday . The stock traded as low as $179.88 and last traded at $180.99. Approximately 1,243,620 shares changed hands during trading, a decline of 79% from the average daily volume of 6,057,565 shares. The stock had previously closed at $185.30.

Analyst Ratings Changes

AMAT has been the topic of several recent research reports. Dbs Bank cut Applied Materials from a “strong-buy” rating to a “hold” rating in a report on Monday, September 16th. Susquehanna dropped their price objective on shares of Applied Materials from $215.00 to $190.00 and set a “neutral” rating for the company in a research note on Friday, October 11th. JPMorgan Chase & Co. upped their target price on shares of Applied Materials from $240.00 to $250.00 and gave the company an “overweight” rating in a research report on Friday, August 16th. Needham & Company LLC reaffirmed a “buy” rating and issued a $260.00 price target on shares of Applied Materials in a report on Friday, August 16th. Finally, B. Riley reduced their price objective on Applied Materials from $300.00 to $280.00 and set a “buy” rating on the stock in a research note on Friday, August 16th. Eight equities research analysts have rated the stock with a hold rating and fifteen have assigned a buy rating to the stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $229.14.

Applied Materials Trading Down 2.8 %

The stock has a market capitalization of $149.10 billion, a P/E ratio of 20.80, a P/E/G ratio of 2.66 and a beta of 1.54. The stock’s 50 day moving average price is $192.41 and its 200-day moving average price is $207.92. The company has a quick ratio of 2.09, a current ratio of 2.86 and a debt-to-equity ratio of 0.33.

Applied Materials (NASDAQ:AMAT) last announced its earnings results on Thursday, August 15th. The manufacturing equipment provider reported $2.12 EPS for the quarter, topping analysts’ consensus estimates of $2.02 by $0.10. Applied Materials had a net margin of 27.74% and a return on equity of 39.99%. The business had revenue of $6.78 billion during the quarter, compared to the consensus estimate of $6.68 billion. During the same period in the previous year, the company posted $1.90 earnings per share. The firm’s revenue was up 5.5% on a year-over-year basis. As a group, equities research analysts expect that Applied Materials, Inc. will post 8.49 earnings per share for the current year.

Applied Materials Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, December 12th. Shareholders of record on Thursday, November 21st will be issued a $0.40 dividend. This represents a $1.60 annualized dividend and a yield of 0.89%. The ex-dividend date is Thursday, November 21st. Applied Materials’s dividend payout ratio is presently 18.39%.

Hedge Funds Weigh In On Applied Materials

Hedge funds have recently modified their holdings of the stock. Summit Securities Group LLC acquired a new position in Applied Materials during the 2nd quarter valued at approximately $26,000. Fairfield Financial Advisors LTD acquired a new position in shares of Applied Materials in the 2nd quarter valued at $28,000. Clean Yield Group acquired a new stake in Applied Materials during the 3rd quarter worth about $33,000. First PREMIER Bank grew its stake in Applied Materials by 326.3% during the 3rd quarter. First PREMIER Bank now owns 162 shares of the manufacturing equipment provider’s stock valued at $33,000 after purchasing an additional 124 shares during the last quarter. Finally, Mark Sheptoff Financial Planning LLC purchased a new stake in Applied Materials in the first quarter valued at approximately $35,000. Institutional investors and hedge funds own 80.56% of the company’s stock.

About Applied Materials

Applied Materials, Inc engages in the provision of manufacturing equipment, services, and software to the semiconductor, display, and related industries. The company operates through three segments: Semiconductor Systems, Applied Global Services, and Display and Adjacent Markets. The Semiconductor Systems segment develops, manufactures, and sells various manufacturing equipment that is used to fabricate semiconductor chips or integrated circuits.