Taking into account all relevant factors, Applied Materials, Inc. (NASDAQ:AMAT) scores 80% Buy on the technical side. The share price is also flashing a Hold from the Barchart TrendSpotter trading system. Investors starting out on a short-term path of investing should know that short terms indicators for AMAT averaged 50% Buy with an average daily trading volume over the past 20 days at 8384780 shares. Those using medium-term investment strategies, the shares have overall a 1% Buy signal while the 50-day average daily volume remained almost 7459642 shares. It’s also important to note that the stock, whose average daily volume over the 100 days as of this piece was shares, is signaling100% Buy for long term investors.
The stock is lingering around the initial support level of $54.89. After this, the following support is at the zone of $54.44. Up until the time the AMAT stock hit levels beyond the current one, bulls should have no alarm. In terms of its momentum, the stock’s RSI hit 45.7 on the daily chart, and this may be a cause for concern. In case the price goes below $54.44 level on closing basis, there may be more profit booking with the stock growing weaker. Still, getting to the $55.85 level may cause a pull-back move approaching $56.36 mark.
Applied Materials, Inc. (AMAT) is most likely going to rise 21.14 percent in the coming 12 months, as per price target approximations compiled by finviz. Nevertheless, they have set the price target at a $80-month high price target. This represents a whopping 44.56 percent increase from the current trading of shares. The 52-week median price target given by the analysts is $67.5, which means a return possibility of 21.97 percent in comparison with the closing price of the stock of $55.34 on December 03. The lowest price set for the stock is $48 — just above -13.26 percent from AMAT share price now.
Let’s take a glimpse at some insider activity at Applied Materials, Inc. (NASDAQ:AMAT) and observe the pattern. The earliest insider trade happened on 11/19/2019. DICKERSON GARY E parted with a total of 1 million shares of the firm at average share price of $61.11. The total amount for the sale was set at $61.11 million. On completing this exchange, the President and CEO account balance was 2.27 million shares. The stock lost -7.22 percent from that insider sale. On 11/18/2019, Forrest Stephen R, Director, did a sale of 3 thousand shares at a price of $62.86 per share. This got rid of 188.58 thousand shares from the insider’s fortune and the stock experienced a -9.8 percent retreat in price since the news became public. This exchange saw 72.96 thousand shares get out from the Director account. On 09/24/2019, SVP, New Mrkts & Alliances Grp Ghanayem Steve G. recorded a sale transaction valued at $1.34 million. The sale at $52.12 a share has eliminated 25.73 thousand shares from the insider’s portfolio position. Meanwhile, shares price witnessed 8.79 percent increase since the transaction reporting date. The company insider is left with 460.75 thousand shares remaining in the account. POWELL DENNIS D, who works as Director at the company, performed a sale of 25.22 thousand shares in a transaction worth $1.3 million. The disposal recorded on 09/05/2019 was priced at $51.44 per share. The stock price soared 10.23 percent since the transaction. POWELL DENNIS D currently holds a stake of 69.45 thousand in AMAT stock which is worth $3.84 million after the insider selling.
On December 03, 2019, Applied Materials, Inc. (NASDAQ:AMAT) shares lost -2.4% or -1.36 points to close at $55.34 with a thin trading volume of 7.672 million shares. It opened the trading session at $55.18, the shares rose to $55.91 and dropped to $54.95, the range by which the price of stock traded the whole day. The company now has a market cap of $51.5 billion and currently has 929.98 million outstanding shares. Applied Materials, Inc. (AMAT) stock has plunged -0.22 percent of market value in 21 trading days.
Stock analysts at UBS cut their rating on shares of Applied Materials, Inc. (NASDAQ:AMAT) from Neutral to a new rating of Sell in their opinion released on November 21. Nomura analysts bumped their recommendation on AMAT stock from prior rating of Neutral to Buy in a separate flash note to investors on November 15. Analysts at Wells Fargo are sticking to their Outperform recommendation for the stock. However, on November 15, they lifted target price to $67 from the prior target set at $62. Analysts at Wells Fargo, made their first call for this company shares with a Outperform rating, according to a research note that dated back to November 15.
AMAT stock’s trailing 3-year beta is 1.65, meaning there will be a greater rate of return, although posing a higher risk. The part of a firm’s profit given to each outstanding share of regular stock was $2.84 share in the trailing 52 weeks. The stock’s value surged 69.03 percent year to date (YTD) compared to a rise of 48.44 percent in 52 week’s period. The firm’s shares are still trading -12.26 percent below its 1-year high of $63.07 and 92.22 percent up from 52-week low of $28.79. The average consensus ranking on the company is 2.1, on a ranging where 5 is equal to a consensus sell rating. In other words, the mean analyst recommendations are ranking this stock as a sell.
Applied Materials, Inc. (AMAT) shares are trading at a P/E ratio of 19.3 times earnings posted in the trailing 12 months. The industry AMAT deals with has an average P/E of 28.6. Its P/B ratio is standing at 6.2X compared to the 6.7 industry average. It is additionally sporting a 3.6 on the Price-to-Sales ratio, compared to the industry’s P/S average of 5.1. Applied Materials, Inc. has a 43.7% gross profit margin, with its operating margin around 26%. Alongside this, the company’s net profit margin currently stands at 22.8%.
Past records have indicated that shares in Applied Materials, Inc. rose on 22 different earnings reaction days and we have yet to see whether this trend will play out and remain in place when the company reports upcoming earnings.