The stock price of Applied Materials Inc. (NASDAQ: AMAT) has plunged by -0.36 when compared to previous closing price of 155.37, but the company has seen a 8.13% gain in its stock price over the last five trading sessions. Zacks Investment Research reported 2023-11-16 that Applied Materials (AMAT) came out with quarterly earnings of $2.12 per share, beating the Zacks Consensus Estimate of $1.98 per share. This compares to earnings of $2.03 per share a year ago.

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

Applied Materials Inc. (NASDAQ: AMAT) has a higher price-to-earnings ratio of 20.41x compared to its average ratio. compared to its average ratio and a 36-month beta value of 1.60. Analysts have mixed views on the stock, with 17 analysts rating it as a “buy,” 5 as “overweight,” 10 as “hold,” and 1 as “sell.”

The average price point forecasted by analysts for Applied Materials Inc. (AMAT) is $159.35, which is $4.54 above the current market price. The public float for AMAT is 833.39M, and currently, short sellers hold a 2.63% ratio of that float. The average trading volume of AMAT on November 17, 2023 was 5.53M shares.

AMAT’s Market Performance

AMAT’s stock has seen a 8.13% increase for the week, with a 9.45% rise in the past month and a 8.52% gain in the past quarter. The volatility ratio for the week is 2.82%, and the volatility levels for the past 30 days are at 2.60% for Applied Materials Inc. The simple moving average for the last 20 days is 11.13% for AMAT stock, with a simple moving average of 17.44% for the last 200 days.

Analysts’ Opinion of AMAT

Many brokerage firms have already submitted their reports for AMAT stocks, with Raymond James repeating the rating for AMAT by listing it as a “Outperform.” The predicted price for AMAT in the upcoming period, according to Raymond James is $160 based on the research report published on October 17, 2023 of the current year 2023.

AMAT Trading at 10.60% 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 -1.25% of loss for the given period.

Volatility was left at 2.60%, however, over the last 30 days, the volatility rate increased by 2.82%, as shares surge +15.16% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +4.44% upper at present.

During the last 5 trading sessions, AMAT rose by +8.13%, which changed the moving average for the period of 200-days by +30.08% in comparison to the 20-day moving average, which settled at $140.33. In addition, Applied Materials Inc. saw 58.98% in overturn over a single year, with a tendency to cut further gains.

Insider Trading

Reports are indicating that there were more than several insider trading activities at AMAT starting from Hill Brice, who sale 1,000 shares at the price of $150.04 back on Aug 30. After this action, Hill Brice now owns 106,023 shares of Applied Materials Inc., valued at $150,040 using the latest closing price.

Little Teri A., the SVP, CLO of Applied Materials Inc., sale 10,000 shares at $142.00 during a trade that took place back on Jul 07, which means that Little Teri A. is holding 69,504 shares at $1,420,000 based on the most recent closing price.

Stock Fundamentals for AMAT

Current profitability levels for the company are sitting at:

• +29.96 for the present operating margin
• +46.30 for the gross margin

The net margin for Applied Materials Inc. stands at +25.40. The total capital return value is set at 42.73, while invested capital returns managed to touch 36.39. Equity return is now at value 47.44, with 22.78 for asset returns.

Based on Applied Materials Inc. (AMAT), the company’s capital structure generated 47.80 points at debt to equity in total, while total debt to capital is 32.34. Total debt to assets is 21.81, with long-term debt to equity ratio resting at 47.11. Finally, the long-term debt to capital ratio is 31.87.

When we switch over and look at the enterprise to sales, we see a ratio of 5.04, with the company’s debt to enterprise value settled at 0.07. The receivables turnover for the company is 4.51 and the total asset turnover is 0.98. The liquidity ratio also appears to be rather interesting for investors as it stands at 2.16.

Conclusion

To put it simply, Applied Materials Inc. (AMAT) has had a better performance in recent times. Analysts have a bullish opinion on the stock, with some rating it as a “buy” and others as a “hold”. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.