AssuredPartners Investment Advisors Acquires 2,451 Shares in Applied Materials, Inc.

AssuredPartners Investment Advisors LLC has recently purchased a stake in Applied Materials, Inc. (NASDAQ:AMAT - Free Report) during the fourth quarter. In its latest filing with the SEC, the institutional investor reported acquiring 2,451 shares of this manufacturing equipment provider, with a total estimated value of around $399,000.

In addition to AssuredPartners, various other hedge funds have also been active in buying and selling shares of Applied Materials. For instance, Crews Bank & Trust made a new investment in the company during the fourth quarter, valued at approximately $28,000. Similarly, FPC Investment Advisory Inc. added a new position valued at $28,000, while YANKCOM Partnership acquired shares worth $32,000. City Holding Co. bought up shares in the fourth quarter amounting to $39,000. Furthermore, Dunhill Financial LLC increased its holdings by 61.4% during the third quarter, bringing its total to 213 shares valued at $43,000 after acquiring an additional 81 shares in the last quarter. Notably, hedge funds and institutional investors collectively own about 80.56% of Applied Materials’ stock.

Analyzing Applied Materials' Stock Performance

The stock of Applied Materials opened at $145.06 on the most recent trading day. The company's 50-day moving average is $167.33, while the 200-day moving average stands at $176.91. Currently, Applied Materials has a 52-week low of $144.12 and a high of $255.89, and the company boasts a market capitalization of $117.85 billion. It features a price-to-earnings (P/E) ratio of 18.96, a price-to-earnings growth (P/E/G) ratio of 1.81, and a beta of 1.62. The quick ratio is 1.96 and the current ratio is 2.67, indicating a solid financial position, with a debt-to-equity ratio of 0.29.

Earnings and Share Buyback Program Announced

Recently, Applied Materials (NASDAQ:AMAT - Get Free Report) released its quarterly earnings report. For the quarter ending February 13, the company achieved an earnings per share (EPS) of $2.38, surpassing the anticipated $2.28 estimated by analysts by $0.10. Applied Materials registered a net margin of 22.95% and a return on equity of 39.50%. Analysts forecast that the company will report earnings per share of 9.38 for the current fiscal year.

Additionally, the Board of Directors of Applied Materials announced a share buyback program on March 10, allowing the repurchase of up to $10 billion in outstanding shares. This initiative enables the company to buy back approximately 8.2% of its shares in the open market, which typically signals that company leadership perceives the stock as undervalued.

Dividend Announcement

On another note, the company also announced a quarterly dividend set to be paid on June 12 to shareholders of record by May 22. Each shareholder will receive a dividend of $0.46 per share, as opposed to the previous quarterly payment of $0.40, marking an annualized dividend of $1.84 and a yield of 1.27%. The current dividend payout ratio for Applied Materials stands at 24.05%.

Insider Trading Activity

In further developments, Adam Sanders, the Chief Accounting Officer, sold 271 shares of Applied Materials stock on February 24, at an average price of $172.72. This transaction amounted to a total of $46,807.12. After the sale, Sanders retained ownership of 6,479 shares valued at about $1,119,052.88, representing a reduction of 4.01% in his holdings. This sale was disclosed in a filing with the SEC, where it can be accessed. Currently, 0.24% of the company's stock is owned by insiders.

Analyst Ratings and Price Targets

Applied Materials has been under review by several analysts recently. Stifel Nicolaus reduced its price target from $250.00 to $235.00 and maintained a "buy" rating. Morgan Stanley chose to maintain an "underweight" rating, adjusting its price target to $164.00, down from $179.00. Conversely, Susquehanna raised its price objective from $155.00 to $165.00, giving the stock a "neutral" rating. Out of the total, one analyst rated the stock as a sell, six issued hold ratings, and seventeen analysts recommended a buy, creating a consensus rating of "Moderate Buy" and an average price target of $214.67.

Company Overview

Applied Materials, Inc. specializes in providing manufacturing equipment, services, and software aimed at the semiconductor, display, and related industries. The organization operates through three primary segments: Semiconductor Systems, Applied Global Services, and Display and Adjacent Markets, with the Semiconductor Systems segment focused on the development and production of equipment for semiconductor chip fabrication.

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