Vanguard Group Increases Stake in Applied Materials, Inc.

Vanguard Group Inc. has expanded its investment in Applied Materials, Inc. (NASDAQ:AMAT) by 0.6% during the fourth quarter, as detailed in a recent filing with the Securities and Exchange Commission. After acquiring an additional 487,358 shares, Vanguard now holds a total of 77,039,667 shares of the manufacturing equipment provider. This equates to approximately 9.48% of Applied Materials, with a total estimated value of $12,528,961,000 as reported in their latest SEC filing.

Other institutional investors and hedge funds have also adjusted their positions in Applied Materials recently. For instance, State Street Corp increased its holdings by 1.8%, now owning 38,808,047 shares valued at $7,841,178,000 after adding 672,548 shares. Similarly, Geode Capital Management LLC raised its stake by 1.9%, possessing 19,826,373 shares worth $3,994,968,000 after acquiring an additional 371,866 shares. FMR LLC also boosted its share count by 5.5%, owning 16,413,112 shares valued at $3,316,269,000 after purchasing 858,122 more shares. UBS Asset Management also increased its ownership by 3.7%, now holding 8,861,933 shares worth $1,790,554,000. Additionally, Van ECK Associates Corp raised its stake by 1.3%, possessing 6,655,308 shares with an estimated value of $1,082,353,000. Altogether, institutional investors control about 80.56% of the company's total stock.

Recent Analyst Recommendations

Several analysts have recently offered their opinions on Applied Materials shares. The Goldman Sachs Group lowered their target price from $230.00 to $202.00 while maintaining a "buy" rating for the company. Morgan Stanley reiterated an "underweight" rating, setting a target price of $164.00, down from $179.00. Meanwhile, Citigroup raised their price target from $194.00 to $202.00, also assigning a "buy" rating. Edward Jones upgraded the stock from a "hold" to a "buy" recommendation, and Mizuho reduced their target price from $220.00 to $210.00 with an "outperform" rating. Currently, one analyst has rated the stock as a sell, while seven have given it a hold rating, and sixteen analysts recommend buying the stock. According to MarketBeat.com, the consensus rating for Applied Materials is "Moderate Buy" with an average target price of $215.38.

Insider Activity

In additional news, Chief Accounting Officer Adam Sanders sold 271 shares of Applied Materials on February 24th, fetching an average price of $172.72 per share, leading to a total sale value of $46,807.12. After this transaction, he now owns 6,479 shares, valued at approximately $1,119,052.88. This sale represents a 4.01% decrease in his holdings. Such transactions were disclosed in SEC filings, reflecting the insider ownership of 0.24% in Applied Materials.

Stock Performance Overview

The stock of Applied Materials opened at $152.12 on Friday. The company has recorded a yearly low of $145.37 and a high of $255.89. The fifty-day simple moving average stands at $170.32, while the two-hundred-day average is at $177.89. Applied Materials boasts a current ratio of 2.67, a quick ratio of 1.96, and a debt-to-equity ratio of 0.29. It has a market capitalization of $123.59 billion, a price-to-earnings ratio of 19.88, a PEG ratio of 1.81, and a beta of 1.62. In its latest earnings report posted on February 13th, the company announced an earnings per share (EPS) of $2.38, surpassing analyst expectations by $0.10. The company has a net margin of 22.95% and a return on equity of 39.50%. Analysts predict that Applied Materials will achieve an EPS of 9.38 this year.

Dividend and Share Buyback Announcement

Applied Materials recently declared a quarterly dividend to be paid on June 12th. Shareholders registered by May 22nd will receive a $0.46 per share dividend, marking an increase from the previous dividend of $0.40. This adjustment reflects an annualized payout of $1.84 and a yield of 1.21%, with a current payout ratio of 24.05%. Furthermore, the board has authorized a substantial $10.00 billion share buyback plan, enabling the company to repurchase up to 8.2% of its outstanding shares through open market transactions. Such buyback plans often signal that the company's leadership believes the stock is undervalued.

Overview of Applied Materials

Applied Materials, Inc. provides manufacturing equipment, services, and software to the semiconductor and display industries. The company operates through three main segments: Semiconductor Systems, Applied Global Services, and Display and Adjacent Markets. The Semiconductor Systems segment focuses on developing and selling manufacturing equipment necessary for fabricating semiconductor chips and integrated circuits.

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