Applied Materials Upgraded by KeyCorp

On January 20th, 2025, KeyCorp announced an upgrade for shares of Applied Materials (NASDAQ:AMAT) from a sector weight rating to an overweight rating. This change reflects their positive outlook for the manufacturing equipment provider's performance, with a target price set at $225.00 per share.

Other equity research analysts have also weighed in on Applied Materials. Susquehanna reduced their target price from $190.00 to $170.00 and assigned a "neutral" rating on November 11th. On November 15th, TD Cowen decreased their price target from $250.00 to $230.00 while maintaining a "buy" rating. At the same time, Cantor Fitzgerald reiterated their "overweight" rating, keeping their price target at $250.00. Stifel Nicolaus lowered their target from $270.00 to $250.00, also designating it as a "buy". Lastly, Wells Fargo & Company revised their target price down from $210.00 to $200.00 but continued with an "overweight" outlook as of January 13th. Overall, one analyst has a sell rating for AMAT, while seven rate it as hold, and fifteen have a buy rating, leading to a consensus rating of "Moderate Buy" and an average target price of $218.95, according to MarketBeat.com.

Recent Price Performance

On January 19th, 2025, shares of Applied Materials were trading at $192.05. The stock has seen a low of $156.78 and a high of $255.89 over the past year. Key financial ratios indicate a strong position, with a current ratio of 2.51, a quick ratio of 1.87, and a debt-to-equity ratio of 0.29. The firm boasts a market capitalization of $156.27 billion, a price-to-earnings ratio of 22.31, and a price-to-earnings-growth ratio of 1.75. The fifty-day and two-hundred-day simple moving averages stand at $173.10 and $190.95, respectively.

Quarterly Earnings Report

Applied Materials reported their quarterly earnings on November 14th, revealing an earnings per share (EPS) of $2.32, surpassing analyst expectations of $2.19. The company achieved a return on equity of 39.26% and a net margin of 26.41%. During this quarter, they generated revenues of $7.05 billion, exceeding the consensus estimate of $6.96 billion. Compared to the same quarter last year, the revenue represented a year-over-year growth of 4.8%. Analysts anticipate Applied Materials will report EPS of 9.37 for the current fiscal year.

Dividend Announcement

Applied Materials has also announced a quarterly dividend of $0.40 per share, which will be distributed on March 13th to shareholders on record as of February 20th. This equates to an annualized dividend of $1.60, giving a dividend yield of 0.83%. The current dividend payout ratio is 18.58%.

Institutional Holdings

Several institutional investors have recently adjusted their stakes in Applied Materials. State Street Corp increased its holdings by 1.8% in the third quarter, now owning 38,808,047 shares valued at approximately $7.84 billion. Geode Capital Management raised its position by 1.9%, owning 19,826,373 shares valued around $3.99 billion. FMR LLC also increased its stake by 5.5%, holding 16,413,112 shares worth about $3.32 billion. UBS Asset Management boosted its holdings by 3.7% to own 8,861,933 shares valued at $1.79 billion. Van ECK Associates raised its stake by 29.8%, owning 6,571,178 shares valued at around $1.33 billion. Institutional investors collectively own 80.56% of the company's stock.

About Applied Materials

Applied Materials, Inc. provides manufacturing equipment, services, and software primarily to the semiconductor, display, and related industries. The company operates through three main segments: Semiconductor Systems, Applied Global Services, and Display and Adjacent Markets, focusing on the fabrication of semiconductor chips and integrated circuits.

Applied, Materials, Investment