Applied Materials, Inc. (NASDAQ:AMAT) is now being followed by Needham, as they initiated the stock at Buy on December 21. Analysts at Imperial Capital, maintained the company shares at Outperform on November 20 but switched target price from $62 to $47. Brokerage firm Cowen, looks cautious as they stick to prior recommendation of Outperform, in a call on November 20. However, they did change the target price from $62 to $47.
Applied Materials, Inc. (AMAT) hit an intraday high Friday at $35.315. The shares finished at $34.78, after trading as low as $34.19 earlier in the session. It rose 0.06% in recent trade and currently has a stock-market value of $33.32B. Trading activity significantly weakened as the volume at ready counter decreased to 6,449,532 shares versus 13,000,875 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 12,556,600 shares. The stock is now 20.81% above against its bear-market low of $28.79 on December 26, 2018. It has retreated -79.41% since it’s 52-week high of $62.4 reached in March. Now the market price is down -34.75% on the year and up 6.23% YTD.
AMAT’s 50 day simple moving average (SMA 50) price is $33.97 and its 200-day simple moving average (SMA 200) price is $43.12. The company’s stock currently has a total float of 954.78M shares. Its weekly volatility is hovering around 4.08% and felt 4.48% volatility in price over a month. On the upside, the share price will test short term resistance at around $35.33. On a downside, the stock is likely to find some support, which begins at $34.21. The failure to get near-term support could push it to $33.64.
Separately, it has been reported that multiple insider activity took place at Applied Materials, Inc. (AMAT). Director Iannotti Thomas J sold 15,000 shares for $61,967 in transaction occurred on 2018/03/12. After making this transaction, the Director owns a direct stake of 922,050 shares, worth $2,155,212, as per the last closing price. On 2018/01/03 Forrest Stephen R, Director at AMAT, dumped 4,000 shares at an average price of $53.67 per share. The selling total is valued at $2,475,571.
Senior VP, CTO, Nalamasu Omkaram had divested 53,466 shares for $344,715 through a trade on 2018/01/02. Following this activity, the insider holds 2,833,698 shares worth $11,989,188 as of recent close. Wall Street’s most bullish Applied Materials, Inc. (NASDAQ:AMAT) analysts are predicting the share price to blow past $63 per share during the next 12 months. The current median share price forecast by them is $46, suggesting that the stock could increase 32.26% in that time frame. The average price target of $47.17 calls for a nearly 35.62% increase in the stock price.
When looking at valuations, Applied Materials, Inc. (AMAT) has a cheap P/E of 8.07x as compared to industry average of 12.18x. Moreover, it trades for 7.92 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 4.95x price/book and 1.93x price/sales. Compared to others, Applied Materials, Inc. is in a different league with regards to profitability, having net margins of 19.2%. To put some perspective around this, the industry’s average net margin is 18.11%. AMAT’s ROE is 45.4%, which is also considerably better than the industry’s ROE of 28.14%. It’s also very liquid in the near term, with a current ratio of 2.6. The stock has a debt/capital of 0.
Shares of Applied Materials, Inc. (AMAT) have dropped -0.7% since the company’s Jan-19 earnings report. Over the past 12 fiscal quarters, Applied Materials, Inc. (NASDAQ:AMAT) has topped consensus earnings estimates in 12 quarters (100%), missed earnings in 0 quarters (0%), whereas at 0 occasion EPS met analyst expectations. AMAT last reported earnings on November 15, 2018 when it released Oct-18 results that receded expectations. The company raked in $0.97 per share, 115.56% change on the same period last year. That was worse than consensus for $0.97. Revenue for the recent quarter stood at $4.01 billion, up 1% on last year and above the $4 billion predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $3.69 billion to $3.75 billion, which should be compared with $4.31 billion generated last year. EPS is seen in a range of $0.78 to $0.8, against the $1.06 reported a year ago.