Riding the Trend or Protecting Profits | Applied Materials Inc. (AMAT)


Applied Materials Inc. (NASDAQ:AMAT) went down by -1.11% from its latest closing price compared to the recent 1-year high of $69.90. The company’s stock price has collected 1.38% of gains in the last five trading sessions. MarketWatch.com reported on 09/18/20 that Semiconductor stocks are hot, and these numbers say they have more room to run

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Is It Worth Investing in Applied Materials Inc. (NASDAQ :AMAT) Right Now?

Applied Materials Inc. (NASDAQ:AMAT) scored a price-to-earnings ratio above its average ratio, recording 16.63 x from its present earnings ratio. Plus, the 36-month beta value for AMAT is at 1.31.

AMAT currently public float of 910.12M and currently shorts hold a 1.70% ratio of that float. Today, the average trading volume of AMAT was 7.73M shares.

AMAT’s Market Performance

AMAT stocks went up by 1.38% for the week, with a monthly drop of -10.18% and a quarterly performance of -4.54%, while its annual performance rate touched 11.90%. The volatility ratio for the week stands at 3.63% while the volatility levels for the past 30 days are set at 3.28% for Applied Materials Inc.. The simple moving average for the period of the last 20 days is -3.19% for AMAT stocks with a simple moving average of -1.14% for the last 200 days.

Analysts’ Opinion of AMAT

Many brokerage firms have already submitted their reports for AMAT stocks, with Cowen repeating the rating for AMAT by listing it as a “Outperform.” The predicted price for AMAT in the upcoming period, according to Cowen is $82 based on the research report published on August 14th of the current year 2020.

B. Riley FBR, on the other hand, stated in their research note that they expect to see AMAT reach a price target of $82, previously predicting the price at $72. The rating they have provided for AMAT stocks is “Buy” according to the report published on August 14th, 2020.

Morgan Stanley gave a rating of “Equal-Weight” to AMAT, setting the target price at $60 in the report published on June 16th of the current year.

AMAT Trading at -7.81% from the 50-Day Moving Average

After a stumble in the market that brought AMAT to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -18.10% of loss for the given period.

Volatility was left at 3.28%, however, over the last 30 days, the volatility rate increased by 3.63%, as shares sank -10.62% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -8.46% lower at present.

During the last 5 trading sessions, AMAT rose by +1.38%, which changed the moving average for the period of 200-days by +1.15% in comparison to the 20-day moving average, which settled at $58.79. In addition, Applied Materials Inc. saw -6.21% in overturn over a single year, with a tendency to cut further losses.

Insider Trading

Reports are indicating that there were more than several insider trading activities at AMAT starting from Karsner Alexander, who sale 3,467 shares at the price of $60.50 back on Jun 22. After this action, Karsner Alexander now owns 7,508 shares of Applied Materials Inc., valued at $209,754 using the latest closing price.

Karsner Alexander, the Director of Applied Materials Inc., sale 20,027 shares at $60.43 during a trade that took place back on Jun 18, which means that Karsner Alexander is holding 10,975 shares at $1,210,232 based on the most recent closing price.

Stock Fundamentals for AMAT

Current profitability levels for the company are sitting at:

  • +22.93 for the present operating margin
  • +43.47 for the gross margin

The net margin for Applied Materials Inc. stands at +18.52. The total capital return value is set at 26.10, while invested capital returns managed to touch 21.58. Equity return is now at value 35.90, with 15.60 for asset returns.

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Based on Applied Materials Inc. (AMAT), the company’s capital structure generated 64.68 points at debt to equity in total, while total debt to capital is 39.28. Total debt to assets is 27.91, with long-term debt to equity ratio resting at 57.38. Finally, the long-term debt to capital ratio is 34.84.

Currently, EBITDA for the company is 1.20B with total debt to EBITDA at 1.43. When we switch over and look at the enterprise to sales, we see a ratio of 3.72, with the company’s debt to enterprise value settled at 0.10. The receivables turnover for the company is 5.61 and the total asset turnover is 0.79. The liquidity ratio also appears to be rather interesting for investors as it stands at 2.30.


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