Analysis of Applied Materials Inc. (NASDAQ:AMAT): Selected Notes

The closing price of Applied Materials Inc. (NASDAQ: AMAT) was $122.83 for the day, up 3.67% from the previous closing price of $118.48. In other words, the price has increased by $+4.35 from its previous closing price. On the day, 6778183 shares were traded. AMAT stock price reached its highest trading level at $123.43 during the session, while it also had its lowest trading level at $116.90.

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Our analysis of AMAT’s different ratios will help us gain a deeper understanding of the company. It provided that stocks Price–to–Cash (P/C) ratio for the trailing twelve months (TTM) is standing at 26.24 whereas its Price-to-Free Cash Flow (P/FCF) for the term is 33.17. For the most recent quarter (mrq), Quick Ratio is recorded 1.50 and its Current Ratio is at 2.30. In the meantime, Its Debt-to-Equity ratio is 0.43 whereas as Long-Term Debt/Eq ratio is at 0.41.

Upgrades & Downgrades

In addition, analysts’ ratings and any changes thereto give investors an idea of the stock’s future direction. In the most recent recommendation for the company, Barclays on January 23, 2023, Downgraded its rating to Underweight and sets its target price to $90 from $80 previously.

On December 07, 2022, Loop Capital started tracking the stock assigning a Buy rating and target price of $125.Loop Capital initiated its Buy rating on December 07, 2022, with a $125 target price.

Insider Transactions:

Also, insider trades can serve as a great indicator of what management thinks about the future direction of a stock’s price. A recent insider transaction in this stock occurred on Feb 28 when Little Teri A. sold 6,813 shares for $117.44 per share. The transaction valued at 800,119 led to the insider holds 98,332 shares of the business.

CHEN XUN sold 377 shares of AMAT for $40,641 on Jan 20. The Director now owns 0 shares after completing the transaction at $107.80 per share. On Sep 14, another insider, Deane Timothy M, who serves as the GVP, Applied Global Services of the company, sold 29 shares for $91.46 each. As a result, the insider received 2,652 and left with 87,532 shares of the company.

Valuation Measures:

As of this moment, Applied’s Price-to-Earnings (P/E) ratio for their current fiscal year is 16.46, and their Forward P/E ratio for the next fiscal year is 17.88. The expected Price-to-Earnings-to-Growth (PEG) calculation for the next 5 years is 1.32. For the stock, the TTM Price-to-Sale (P/S) ratio is 4.05 while its Price-to-Book (P/B) ratio in mrq is 7.73.

Stock Price History:

Over the past 52 weeks, AMAT has reached a high of $142.01, while it has fallen to a 52-week low of $71.12. The 50-Day Moving Average of the stock is 113.38, while the 200-Day Moving Average is calculated to be 101.23.

Shares Statistics:

AMAT traded an average of 6.44M shares per day over the past three months and 6.8M shares per day over the past ten days. A total of 845.00M shares are outstanding, with a floating share count of 834.77M. Insiders hold about 0.35% of the company’s shares, while institutions hold 79.90% stake in the company. Shares short for AMAT as of Jan 12, 2023 were 10.26M with a Short Ratio of 12.20M, compared to 14.68M on Dec 14, 2022. Therefore, it implies a Short% of Shares Outstanding of 1.22% and a Short% of Float of 1.22%.

Dividends & Splits

With its trailing 12-month dividend rate of 0.88, AMAT has a forward annual dividend rate of 1.04. Against a Trailing Annual Dividend Yield of 0.74%, it implies a Forward Annual Dividend Yield of 0.86%. The stock’s 5-year Average Dividend Yield is 1.21. The current Payout Ratio is 10.10% for AMAT, which recently paid a dividend on Mar 15, 2023 with an ex-dividend date of Feb 21, 2023. Stock splits for the company last occurred on Apr 16, 2002 when the company split stock in a 2:1 ratio.

Earnings Estimates

The firm’s stock currently is rated by 23 analysts. On average, analysts expect EPS of $1.93 for the current quarter, with a high estimate of $1.98 and a low estimate of $1.88, while EPS last year was $1.89. The consensus estimate for the next quarter is $1.79, with high estimates of $1.94 and low estimates of $1.56.

Analysts are recommending an EPS of between $8.8 and $5.64 for the fiscal current year, implying an average EPS of $6.68. EPS for the following year is $6.66, with 25 analysts recommending between $9.36 and $4.27.

Revenue Estimates

It is expected that $90B in revenue will be generated in the current quarter, according to 21 analysts. It ranges from a high estimate of $6.75B to a low estimate of $6.54B. As of the current estimate, Applied Materials Inc.’s year-ago sales were $6.27B, an estimated increase of 6.60% from the year-ago figure. For the next quarter, 21 analysts are estimating revenue of $6.38B, an increase of 2.10% less than the figure of $6.60% in the same quarter last year. There is a high estimate of $6.72B for the next quarter, whereas the lowest estimate is $5.97B.

A total of 29 analysts have provided revenue estimates for AMAT’s current fiscal year. The highest revenue estimate was $26.12B, while the lowest revenue estimate was $22.32B, resulting in an average revenue estimate of $24.14B. In the same quarter a year ago, actual revenue was $25.79B, down -6.40% from the average estimate. Based on 25 analysts’ estimates, the company’s revenue will be $23.49B in the next fiscal year. The high estimate is $27.46B and the low estimate is $20.1B. The average revenue growth estimate for next year is down -2.70% from the average revenue estimate for this year.