BlackRock Updates Holdings in Applied Materials (AMAT)

Fintel reports that BlackRock has filed a 13G/A form with the SEC disclosing ownership of 69.25MM shares of Applied Materials, Inc. (AMAT). This represents 8.2% of the company.

In their previous filing dated February 1, 2022 they reported 71.87MM shares and 8.10% of the company, a decrease in shares of 3.64% and an increase in total ownership of 0.10% (calculated as current - previous percent ownership).

Analyst Price Forecast Suggests 2.49% Upside

As of February 6, 2023, the average one-year price target for Applied Materials is $120.62. The forecasts range from a low of $80.80 to a high of $147.00. The average price target represents an increase of 2.49% from its latest reported closing price of $117.69.

The projected annual revenue for Applied Materials is $24,715MM, a decrease of 4.15%. The projected annual EPS is $6.84, a decrease of 8.70%.

Fund Sentiment

There are 2769 funds or institutions reporting positions in Applied Materials. This is a decrease of 35 owner(s) or 1.25%.

Average portfolio weight of all funds dedicated to US:AMAT is 0.4634%, an increase of 0.4844%. Total shares owned by institutions increased in the last three months by 0.86% to 769,423K shares.

What are large shareholders doing?

Capital World Investors holds 29,285,325 shares representing 3.47% ownership of the company. In it's prior filing, the firm reported owning 32,368,838 shares, representing a decrease of 10.53%. The firm decreased its portfolio allocation in AMAT by 13.90% over the last quarter.

VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 25,638,293 shares representing 3.04% ownership of the company. In it's prior filing, the firm reported owning 26,014,976 shares, representing a decrease of 1.47%. The firm decreased its portfolio allocation in AMAT by 7.49% over the last quarter.

VFINX - Vanguard 500 Index Fund Investor Shares holds 19,721,000 shares representing 2.34% ownership of the company. In it's prior filing, the firm reported owning 19,553,880 shares, representing an increase of 0.85%. The firm decreased its portfolio allocation in AMAT by 6.08% over the last quarter.

Capital International Investors holds 18,086,936 shares representing 2.15% ownership of the company. In it's prior filing, the firm reported owning 18,996,379 shares, representing a decrease of 5.03%. The firm decreased its portfolio allocation in AMAT by 8.05% over the last quarter.

Geode Capital Management holds 15,699,467 shares representing 1.86% ownership of the company. In it's prior filing, the firm reported owning 16,492,625 shares, representing a decrease of 5.05%. The firm decreased its portfolio allocation in AMAT by 11.17% over the last quarter.

Applied Materials Declares $0.26 Dividend

Applied Materials said on December 12, 2022 that its board of directors declared a regular quarterly dividend of $0.26 per share ($1.04 annualized). Shareholders of record as of February 22, 2023 will receive the payment on March 16, 2023. Previously, the company paid $0.26 per share.

At the current share price of $117.69 / share, the stock's dividend yield is 0.88%. Looking back five years and taking a sample every week, the average dividend yield has been 1.32%, the lowest has been 0.59%, and the highest has been 2.76%. The standard deviation of yields is 0.54 (n=237).

The current dividend yield is 0.80 standard deviations below the historical average.

Additionally, the company's dividend payout ratio is 0.13. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.

The company's 3-Year dividend growth rate is 0.24%, demonstrating that it has increased its dividend over time.

Applied Materials Background Information
(This description is provided by the company.)

Applied Materials, Inc. is the leader in materials engineering solutions used to produce virtually every new chip and advanced display in the world. Its expertise in modifying materials at atomic levels and on an industrial scale enables customers to transform possibilities into reality.

This story originally appeared on Fintel.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.