Applied Materials Inc. (NASDAQ: AMAT)’s stock price has decreased by -2.34 compared to its previous closing price of 194.32. However, the company has seen a -8.70% decrease in its stock price over the last five trading sessions. The Motley Fool reported 2024-04-18 that Applied Materials’ profits and cash flow have surged in recent years, providing fuel for share buybacks. The company authorized $10 billion for share buybacks in early 2023.
Is It Worth Investing in Applied Materials Inc. (NASDAQ: AMAT) Right Now?
Applied Materials Inc. (NASDAQ: AMAT) has a price-to-earnings ratio of 22.32x that is above its average ratio. Additionally, the 36-month beta value for AMAT is 1.58. There are mixed opinions on the stock, with 15 analysts rating it as a “buy,” 5 rating it as “overweight,” 1 rating it as “hold,” and 0 rating it as “sell.”
The public float for AMAT is 827.82M and currently, short sellers hold a 1.50% ratio of that float. The average trading volume of AMAT on April 22, 2024 was 6.19M shares.
AMAT’s Market Performance
AMAT’s stock has seen a -8.70% decrease for the week, with a -7.46% drop in the past month and a 13.00% gain in the past quarter. The volatility ratio for the week is 3.55%, and the volatility levels for the past 30 days are at 2.64% for Applied Materials Inc. The simple moving average for the last 20 days is -8.38% for AMAT stock, with a simple moving average of 17.77% for the last 200 days.
Analysts’ Opinion of AMAT
Many brokerage firms have already submitted their reports for AMAT stocks, with Evercore ISI repeating the rating for AMAT by listing it as a “Outperform.” The predicted price for AMAT in the upcoming period, according to Evercore ISI is $260 based on the research report published on April 16, 2024 of the current year 2024.
Deutsche Bank, on the other hand, stated in their research note that they expect to see AMAT reach a price target of $225. The rating they have provided for AMAT stocks is “Hold” according to the report published on April 11th, 2024.
Cantor Fitzgerald gave a rating of “Overweight” to AMAT, setting the target price at $260 in the report published on April 08th of the current year.
AMAT Trading at -5.73% 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 -11.70% of loss for the given period.
Volatility was left at 2.64%, however, over the last 30 days, the volatility rate increased by 3.55%, as shares sank -9.98% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +11.04% upper at present.
During the last 5 trading sessions, AMAT fell by -8.70%, which changed the moving average for the period of 200-days by +33.40% in comparison to the 20-day moving average, which settled at $206.09. In addition, Applied Materials Inc. saw 17.09% 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 Nalamasu Omkaram, who sale 23,228 shares at the price of $162.45 back on Dec 22 ’23. After this action, Nalamasu Omkaram now owns 190,972 shares of Applied Materials Inc., valued at $3,773,389 using the latest closing price.
Hill Brice, the SVP, CFO of Applied Materials Inc., sale 1,000 shares at $150.04 during a trade that took place back on Aug 30 ’23, which means that Hill Brice is holding 106,023 shares at $150,040 based on the most recent closing price.
Stock Fundamentals for AMAT
Current profitability levels for the company are sitting at:
- 0.29 for the present operating margin
- 0.47 for the gross margin
The net margin for Applied Materials Inc. stands at 0.27. The total capital return value is set at 0.31. Equity return is now at value 46.41, with 24.06 for asset returns.
Based on Applied Materials Inc. (AMAT), the company’s capital structure generated 0.25 points at debt to capital in total, while cash flow to debt ratio is standing at 1.52. The debt to equity ratio resting at 0.33. The interest coverage ratio of the stock is 24.6.
Currently, EBITDA for the company is 8.47 billion with net debt to EBITDA at -0.1. When we switch over and look at the enterprise to sales, we see a ratio of 5.92. The receivables turnover for the company is 5.25for trailing twelve months and the total asset turnover is 0.84. The liquidity ratio also appears to be rather interesting for investors as it stands at 2.71.
Conclusion
In conclusion, Applied Materials Inc. (AMAT) has seen mixed performance in recent times. Analysts have a bullish opinion on the stock, with some rating it as a “buy” and others rating it as a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
