Applied Materials (AMAT) to Repurchase $6.00 billion in Outstanding Shares

Applied Materials (NASDAQ:AMAT) declared that its Board of Directors has authorized a share repurchase plan, which allows the company to buyback $6.00 billion in outstanding shares on Wednesday, February 14th, EventVestor reports. This buyback authorization allows the manufacturing equipment provider to buy shares of its stock through open market purchases. Stock buyback plans are usually a sign that the company’s management believes its stock is undervalued.

Shares of Applied Materials (NASDAQ AMAT) traded up $2.41 during trading hours on Thursday, hitting $51.96. The company’s stock had a trading volume of 22,120,699 shares, compared to its average volume of 13,870,620. Applied Materials has a 12 month low of $34.58 and a 12 month high of $60.89. The firm has a market capitalization of $54,150.00, a PE ratio of 16.17, a P/E/G ratio of 0.97 and a beta of 1.72. The company has a quick ratio of 2.43, a current ratio of 3.14 and a debt-to-equity ratio of 0.57.

Applied Materials (NASDAQ:AMAT) last announced its quarterly earnings results on Wednesday, February 14th. The manufacturing equipment provider reported $1.06 earnings per share for the quarter, topping analysts’ consensus estimates of $0.98 by $0.08. Applied Materials had a return on equity of 41.51% and a net margin of 23.62%. The company had revenue of $4.20 billion during the quarter, compared to analysts’ expectations of $4.10 billion. During the same quarter in the previous year, the firm earned $0.67 earnings per share. equities analysts forecast that Applied Materials will post 4.04 earnings per share for the current fiscal year.

The business also recently declared a quarterly dividend, which will be paid on Thursday, June 14th. Shareholders of record on Thursday, May 24th will be given a $0.20 dividend. This represents a $0.80 dividend on an annualized basis and a dividend yield of 1.54%. This is a boost from Applied Materials’s previous quarterly dividend of $0.10. Applied Materials’s payout ratio is currently 12.62%.

A number of research analysts have recently weighed in on the company. Vetr downgraded Applied Materials from a “buy” rating to a “hold” rating and set a $61.08 price target on the stock. in a report on Tuesday, November 21st. Nomura reiterated a “buy” rating and set a $65.00 price target (up previously from $55.00) on shares of Applied Materials in a report on Tuesday, November 21st. Credit Suisse Group lifted their price target on Applied Materials from $62.00 to $72.00 and gave the company an “outperform” rating in a report on Friday, November 17th. Royal Bank of Canada lifted their price target on Applied Materials from $55.00 to $64.00 and gave the company an “outperform” rating in a report on Friday, November 17th. Finally, Deutsche Bank lifted their price target on Applied Materials from $58.00 to $65.00 and gave the company a “buy” rating in a report on Friday, November 17th. Two research analysts have rated the stock with a hold rating, twenty-four have given a buy rating and one has assigned a strong buy rating to the stock. The stock presently has a consensus rating of “Buy” and an average target price of $63.84.

In other Applied Materials news, VP Ali Salehpour sold 125,125 shares of the business’s stock in a transaction dated Friday, December 29th. The stock was sold at an average price of $51.47, for a total value of $6,440,183.75. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Also, VP Omkaram Nalamasu sold 53,466 shares of the business’s stock in a transaction dated Tuesday, January 2nd. The stock was sold at an average price of $53.00, for a total value of $2,833,698.00. The disclosure for this sale can be found here. Insiders sold 312,716 shares of company stock valued at $16,218,746 in the last ninety days. Insiders own 0.35% of the company’s stock.

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About Applied Materials

Applied Materials, Inc provides manufacturing equipment, services and software to the global semiconductor, display and related industries. The Company’s segments are Semiconductor Systems, which includes semiconductor capital equipment for etch, rapid thermal processing, deposition, chemical mechanical planarization, metrology and inspection, wafer packaging, and ion implantation; Applied Global Services, which provides integrated solutions to optimize equipment and fab performance and productivity; Display and Adjacent Markets, which includes products for manufacturing liquid crystal displays, organic light-emitting diodes, upgrades and roll-to-roll Web coating systems and other display technologies for televisions, personal computers, smart phones and other consumer-oriented devices, and Corporate and Other segment, which includes revenues from products, as well as costs of products sold for fabricating solar photovoltaic cells and modules, and certain operating expenses.

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