Sanford C. Bernstein Lowers Applied Materials Price Target to $210.00

On December 2, 2024, Sanford C. Bernstein announced a reduction in its price target for Applied Materials (NASDAQ:AMAT) from $220.00 to $210.00. Despite this adjustment, the firm maintains an 'outperform' rating on the stock of the leading manufacturing equipment provider.

Numerous other brokerage firms have also made adjustments to their ratings on Applied Materials. For instance, B. Riley revised their target from $300.00 down to $280.00 while keeping a 'buy' rating for the company on August 16. Similarly, Wells Fargo & Company lowered their price target from $235.00 to $220.00 and also gave the stock an 'overweight' rating on November 15. Morgan Stanley further cut their price target from $185.00 to $179.00 with an 'equal weight' rating. Evercore ISI reduced the target from $260.00 to $250.00 while maintaining an 'outperform' rating on the same day. Lastly, Mizuho adjusted their price target downwards from $245.00 to $225.00 and also continues to hold an 'outperform' rating since September 20.

Currently, there are eight analysts who recommend holding the stock, while fifteen have provided a buy rating. Data from MarketBeat.com indicates that Applied Materials has an average rating classified as 'Moderate Buy' with a consensus target price of $221.48.

Performance of Applied Materials Stock

The stock of Applied Materials opened at $174.71 on the same day. The 50-day moving average for the stock stands at $188.11, while the 200-day average is $204.41. The company has a market capitalization of $144.03 billion, with a price-to-earnings ratio of 20.29 and a price-to-earnings-growth ratio of 1.64, along with a beta of 1.56. Over the past 12 months, the stock reached a low of $144.57 and a high of $255.89. The company's current debt-to-equity ratio is 0.29, with a current ratio of 2.51 and a quick ratio of 1.87.

Applied Materials reported its quarterly earnings results on November 14. The company posted $2.32 earnings per share (EPS), exceeding expectations of $2.19 by $0.13. The return on equity recorded was 39.26%, and the net margin stood at 26.41%. Applied Materials’ revenue for the quarter was $7.05 billion, which was higher than the anticipated $6.96 billion. This revenue reflects a 4.8% increase year-over-year compared to the same quarter last year.

Dividend Information from Applied Materials

Recently, the company announced a quarterly dividend that will be distributed on December 12. Shareholders who are recorded as of November 21 will receive a dividend of $0.40 per share, marking an annualized dividend of $1.60, equating to a yield of 0.92%. The current dividend payout ratio for Applied Materials is at 18.58%.

Institutional Investors' Positions in Applied Materials

There have been significant changes in institutional investors' stakes in Applied Materials recently. State Street Corp increased its holdings by 1.8% during the third quarter and now owns 38,808,047 shares valued at approximately $7.84 billion after acquiring an additional 672,548 shares. Geode Capital Management LLC raised its position by 1.9% in the same period, owning 19,826,373 shares valued at $3.99 billion after a boost of 371,866 shares. FMR LLC also raised its stake by 5.5%, now holding 16,413,112 shares worth about $3.32 billion after buying an additional 858,122 shares. Furthermore, UBS Asset Management increased its holdings by 3.7% with 8,861,933 shares now owned, valued at around $1.79 billion. Van ECK Associates Corp expanded its position by 29.8%, acquiring an additional 1,509,439 shares, bringing its total to 6,571,178, approximately valued at $1.33 billion. Currently, institutional investors hold approximately 80.56% of Applied Materials’ stock.

About the Company

Applied Materials, Inc. specializes in providing manufacturing equipment, services, and software primarily for the semiconductor, display, and related industries. The company operates through three main segments: Semiconductor Systems, Applied Global Services, and Display and Adjacent Markets. The Semiconductor Systems segment is focused on developing and selling manufacturing equipment essential for fabricating semiconductor chips or integrated circuits.

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