Citigroup Issues Pessimistic Forecast for Applied Materials (NASDAQ:AMAT) Stock Price

Applied Materials (NASDAQ:AMAT) had its price target decreased by equities researchers at Citigroup from $202.00 to $170.00 in a report released on Friday,Benzinga reports. The firm currently has a “buy” rating on the manufacturing equipment provider’s stock. Citigroup’s price target indicates a potential upside of 17.29% from the stock’s previous close.

AMAT has been the topic of several other research reports. Barclays dropped their target price on Applied Materials from $200.00 to $190.00 and set an “equal weight” rating on the stock in a research report on Friday, February 14th. Susquehanna raised their target price on Applied Materials from $155.00 to $165.00 and gave the stock a “neutral” rating in a research note on Wednesday, January 22nd. Stifel Nicolaus decreased their price target on Applied Materials from $250.00 to $235.00 and set a “buy” rating on the stock in a research report on Tuesday, February 11th. KeyCorp upgraded shares of Applied Materials from a “sector weight” rating to an “overweight” rating and set a $225.00 price objective for the company in a research report on Friday, January 17th. Finally, The Goldman Sachs Group reduced their price objective on shares of Applied Materials from $230.00 to $202.00 and set a “buy” rating for the company in a research note on Friday, January 10th. One investment analyst has rated the stock with a sell rating, six have issued a hold rating and seventeen have issued a buy rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $213.14.

Applied Materials Price Performance

Shares of NASDAQ AMAT opened at $144.94 on Friday. The company has a current ratio of 2.67, a quick ratio of 1.96 and a debt-to-equity ratio of 0.29. The stock has a fifty day simple moving average of $156.82 and a two-hundred day simple moving average of $172.74. Applied Materials has a 1-year low of $123.74 and a 1-year high of $255.89. The firm has a market cap of $117.76 billion, a price-to-earnings ratio of 18.95, a price-to-earnings-growth ratio of 1.81 and a beta of 1.61.

Applied Materials (NASDAQ:AMAT) last issued its earnings results on Thursday, February 13th. The manufacturing equipment provider reported $2.38 earnings per share for the quarter, topping analysts’ consensus estimates of $2.28 by $0.10. Applied Materials had a net margin of 22.95% and a return on equity of 39.50%. Analysts anticipate that Applied Materials will post 9.38 earnings per share for the current year.

Applied Materials declared that its board has approved a stock repurchase program on Monday, March 10th that allows the company to buyback $10.00 billion in outstanding shares. This buyback authorization allows the manufacturing equipment provider to purchase up to 8.2% of its shares through open market purchases. Shares buyback programs are usually a sign that the company’s board believes its stock is undervalued.

Insider Transactions at Applied Materials

In related news, CAO Adam Sanders sold 271 shares of the stock in a transaction dated Monday, February 24th. The stock was sold at an average price of $172.72, for a total transaction of $46,807.12. Following the completion of the sale, the chief accounting officer now directly owns 6,479 shares in the company, valued at $1,119,052.88. This represents a 4.01 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, CEO Gary E. Dickerson purchased 50,000 shares of the firm’s stock in a transaction on Thursday, April 3rd. The stock was bought at an average cost of $137.30 per share, for a total transaction of $6,865,000.00. Following the completion of the purchase, the chief executive officer now directly owns 1,716,058 shares in the company, valued at approximately $235,614,763.40. This trade represents a 3.00 % increase in their ownership of the stock. The disclosure for this purchase can be found here. Company insiders own 0.24% of the company’s stock.

Institutional Investors Weigh In On Applied Materials

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in AMAT. Crews Bank & Trust purchased a new position in shares of Applied Materials in the fourth quarter valued at about $28,000. FPC Investment Advisory Inc. purchased a new position in Applied Materials during the 4th quarter valued at about $28,000. YANKCOM Partnership bought a new position in Applied Materials during the 4th quarter valued at approximately $32,000. City Holding Co. purchased a new stake in Applied Materials in the 4th quarter worth approximately $39,000. Finally, Mascagni Wealth Management Inc. bought a new stake in shares of Applied Materials in the 4th quarter worth approximately $44,000. 80.56% of the stock is currently owned by institutional investors.

About Applied Materials

Applied Materials, Inc engages in the provision of manufacturing equipment, services, and software to the semiconductor, display, and related industries. The company operates through three segments: Semiconductor Systems, Applied Global Services, and Display and Adjacent Markets. The Semiconductor Systems segment develops, manufactures, and sells various manufacturing equipment that is used to fabricate semiconductor chips or integrated circuits.