T. Rowe Price Associates, Inc. (I.. recently announced the acquisition of new stake in Applied Materials Inc. (NASDAQ:AMAT). The institutional investor has increased its shareholding in the Technology company by 11.86% to 57.25 million shares with purchase of 6.07 million shares. This fresh investment now brings its stake to 6.25% valued currently at $3.68 billion. In addition, SSgA Funds Management, Inc. raised its holdings by 75296.0 to 44.11 million shares. And Capital Research & Management Co.. has lifted its position by 5.04% or 0.92 million shares – to 19.23 million shares.
With over 7.89 million Applied Materials Inc. (AMAT) shares trading Tuesday and a closing price of $61.89 on the day, the dollar volume was approximately $488.1 million. The shares have shown a negative weekly performance of -3.37% and its price on 09/01/20 gained nearly 0.47%. Currently, there are 915.00M common shares owned by the public and among those 910.12M shares have been available to trade.
An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 27 analysts who have offered their price forecasts for AMAT have a consensus price objective of $76.92. The analysts have set the share’s price value over the next 12 months at a high of $85.00 and a low of $62.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Applied Materials Inc. stock is 2.10 for the next 12 months. The average price target is 19.41% above its last price level and an upside to the estimated low will see the stock gain 0.18% over that period. But an upside of 27.19% will see the stock hit the forecast high price target while mean target price for the stock is $78.50.
Insiders at the company have transacted a total of 61 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 37 of these insider trades were purchases, accounting for 2,074,612 shares. Insider sales of the common stock occurred on 24 occasions, with total insider shares sold totaling 2,005,761 shares.
The top 3 mutual fund holders in Applied Materials Inc. are Vanguard Total Stock Market Index, Vanguard 500 Index Fund, and Government Pension Fund – Global. Vanguard Total Stock Market Index owns 26.04 million shares of the company’s stock, all valued at over $1.67 billion. The company sold 77361.0 shares recently to bring their total holdings to about 2.84% of the shares outstanding. Vanguard 500 Index Fund sold -0.12 million shares to see its total holdings shrink to 18.9 million shares valued at over $1.22 billion and representing 2.06% of the shares outstanding. Government Pension Fund – Global bought 0.33 million shares to bring its total holdings to over 12.44 million shares at a value of $800.33 million. Government Pension Fund – Global now owns shares totaling to 1.36% of the shares outstanding.
Shares of Applied Materials Inc. (NASDAQ: AMAT) opened at $61.98, up $0.38 from a prior closing price of $61.60. However, the script later closed the day at $61.89, up 0.47%. The company’s stock has a 5-day price change of -3.37% and 7.06% over the past three months. AMAT shares are trading 1.39% year to date (YTD), with the 12-month market performance up to 29.99% higher. It has a 12-month low price of $36.64 and touched a high of $69.90 over the same period. Currently, 7.89 million shares have been traded, compared to an average intraday trading volume of 6.95 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by -4.00%, -1.87%, and 6.86% respectively.
Institutional ownership of Applied Materials Inc. (NASDAQ: AMAT) shares accounts for 83.60% of the company’s 915.00M shares outstanding. Mutual fund holders own 32.93%, while other institutional holders and individual stakeholders account for 49.82% and 1.90% respectively.
It has a market capitalization of $55.59B and a beta (3y monthly) value of 1.33. The stock’s trailing 12-month PE ratio is 17.98, while the earnings-per-share (ttm) stands at $3.44. The company has a PEG of 0.85 and a Quick Ratio of 1.90 with the debt-to-equity ratio at 0.57. Price movements for the stock have been influenced by the stock’s volatility, which stands at 2.26% over the week and 2.43% over the month.
Analysts forecast that Applied Materials Inc. (AMAT) will achieve an EPS of $1.17 for the current quarter, $1.11 for the next quarter and $4.62 for 2021. The lowest estimate earnings-per-share for the quarter is $1.15 while analysts give the company a high EPS estimate of $1.21. Comparatively, EPS for the current quarter was $0.8 a year ago. Earnings per share for the fiscal year are expected to decrease by -29.80%, and 13.24% over the next financial year. EPS should shrink at an annualized rate of 21.04% over the next five years, compared to 26.70% over the past 5-year period.
If you are looking to buy this stock, then you may note that the average analyst recommendation by 27 brokerage firm advisors rate Applied Materials Inc. (AMAT) as a “Moderate Buy” at a consensus score of 2.10. Specifically, 21 Wall Street analysts polled rate the stock as a buy, while 6 of the 27 advise that investors “hold,” and 0 rated it as a “Sell.”
Looking at the support for the AMAT, a number of firms have released research notes about the stock. Cowen stated their Outperform rating for the stock in a research note on August 14, 2020, with the firm’s price target at $78-$82. B. Riley FBR coverage for the Applied Materials Inc. (AMAT) stock in a research note released on August 14, 2020 offered a Buy rating with a price target of $82. Morgan Stanley was of a view on June 16, 2020 that the stock is Equal-Weight, while Barclays gave the stock Equal Weight rating on May 26, 2020, issuing a price target of $60. B. Riley FBR on their part issued Buy rating on May 15, 2020.