Fintel reports that on July 14, 2023, Citigroup maintained coverage of Applied Materials (NASDAQ:AMAT) with a Buy recommendation.
Analyst Price Forecast Suggests 0.92% Downside
As of July 6, 2023, the average one-year price target for Applied Materials is 141.34. The forecasts range from a low of 87.87 to a high of $168.00. The average price target represents a decrease of 0.92% from its latest reported closing price of 142.65.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Applied Materials is 24,715MM, a decrease of 7.22%. The projected annual non-GAAP EPS is 6.84.
Applied Materials Declares $0.32 Dividend
On June 8, 2023 the company declared a regular quarterly dividend of $0.32 per share ($1.28 annualized). Shareholders of record as of August 24, 2023 will receive the payment on September 14, 2023. Previously, the company paid $0.32 per share.
At the current share price of $142.65 / share, the stock's dividend yield is 0.90%.
Looking back five years and taking a sample every week, the average dividend yield has been 1.31%, the lowest has been 0.59%, and the highest has been 2.76%. The standard deviation of yields is 0.53 (n=236).
The current dividend yield is 0.79 standard deviations below the historical average.
Additionally, the company's dividend payout ratio is 0.17. 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 0.45%, demonstrating that it has increased its dividend over time.
What is the Fund Sentiment?
There are 2969 funds or institutions reporting positions in Applied Materials. This is an increase of 101 owner(s) or 3.52% in the last quarter. Average portfolio weight of all funds dedicated to AMAT is 0.55%, an increase of 24.75%. Total shares owned by institutions decreased in the last three months by 1.29% to 768,529K shares. 
The put/call ratio of AMAT is 1.30, indicating a bearish outlook.
What are Other Shareholders Doing?
Capital World Investors holds 32,833K shares representing 3.89% ownership of the company. In it's prior filing, the firm reported owning 34,656K shares, representing a decrease of 5.55%. The firm increased its portfolio allocation in AMAT by 15.87% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 26,164K shares representing 3.10% ownership of the company. In it's prior filing, the firm reported owning 26,155K shares, representing an increase of 0.03%. The firm increased its portfolio allocation in AMAT by 16.51% over the last quarter.
Capital International Investors holds 20,722K shares representing 2.45% ownership of the company. In it's prior filing, the firm reported owning 18,120K shares, representing an increase of 12.56%. The firm increased its portfolio allocation in AMAT by 38.24% over the last quarter.
VFINX - Vanguard 500 Index Fund Investor Shares holds 19,673K shares representing 2.33% ownership of the company. In it's prior filing, the firm reported owning 19,888K shares, representing a decrease of 1.09%. The firm increased its portfolio allocation in AMAT by 15.71% over the last quarter.
Geode Capital Management holds 15,871K shares representing 1.88% ownership of the company. In it's prior filing, the firm reported owning 15,911K shares, representing a decrease of 0.25%. The firm increased its portfolio allocation in AMAT by 16.35% over the last quarter.
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.
Additional reading:
- APPLIED MATERIALS ANNOUNCES SECOND QUARTER 2023 RESULTS
- Extension Agreement, dated as of February 21, 2023, to Credit Agreement, dated as of February 21, 2020 (as amended by that certain Amendment No. 1 to Credit Agreement, dated as of July 27, 2022), among Applied Materials, Inc., the lenders party thereto, and JPMorgan Chase Bank, N.A., as administrative agent†
- APPLIED MATERIALS ANNOUNCES FIRST QUARTER 2023 RESULTS
- Applied Materials, Inc. 2016 Deferred Compensation Plan, as amended and restated on January 1, 2021†
- Form of Indemnification Agreement between Applied Materials, Inc. and Directors and certain officers†
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.
