Applied Materials, Inc. (NASDAQ:AMAT) receieved a positive analyst call from RBC Capital Mkts, which upgraded the stock from Sector Perform to Outperform on January 29. Analysts at Needham, started covering the stock on December 21 with a Buy rating. Brokerage firm Imperial Capital, 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) grew as high as $40.19 on Monday before closing at $39.9. The 0.3 percent rally pushed its market cap to $38.19B. The shares went down as low as $39.33 before recovering. Trading activity significantly weakened as the volume at ready counter decreased to 9,825,017 shares versus 11,983,146 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 12,146,989 shares. The stock is now 38.59% above against its bear-market low of $28.79 on December 26, 2018. It has retreated -56.39% since it’s 52-week high of $62.4 reached in March. Now the market price is down -12.79% on the year and up 21.87% YTD.
AMAT’s 50 day simple moving average (SMA 50) price is $35.13 and its 200-day simple moving average (SMA 200) price is $41.5. The company’s stock currently has a total float of 950.91M shares. Its weekly volatility is hovering around 2.5% and felt 3.2% volatility in price over a month. On the upside, the share price will test short term resistance at around $40.28. On a downside, the stock is likely to find some support, which begins at $39.42. The failure to get near-term support could push it to $38.95.
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 $2,472,483, 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 $2,840,002.
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 $13,754,129 as of recent close. Wall Street’s most bullish Applied Materials, Inc. (NASDAQ:AMAT) analysts are predicting the share price to blow past $65 per share during the next 12 months. The current median share price forecast by them is $46, suggesting that the stock could increase 15.29% in that time frame. The average price target of $48 calls for a nearly 20.3% increase in the stock price.
When looking at valuations, Applied Materials, Inc. (AMAT) has a cheap P/E of 9.26x as compared to industry average of 11.62x. Moreover, it trades for 9.17 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 5.68x price/book and 2.21x 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 18.77%. AMAT’s ROE is 45.4%, which is also considerably better than the industry’s ROE of 29.91%. 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 gained 13.6% 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 $3.64 billion to $3.75 billion, which should be compared with $4.32 billion generated last year. EPS is seen in a range of $0.76 to $0.8, against the $1.06 reported a year ago.