KeyBanc maintained its Applied Materials [AMAT] rating to the equivalent of Overweight but changed the price target to $104 from $89, in a research note dated 2021-01-06. That figure represents around a 16.07% premium from where the company’s shares closed on Tuesday. Other analysts also revised their coverage, with Cowen’s analysts reiterating the shares to “an Outperform” rating in a research note to investors issued in mid August. Meanwhile, B. Riley FBR had maintained its rating on AMAT to the earlier “Buy” rating, in a research note produced for clients August 14, 2020. In addition, there was no change from Morgan Stanley on June 16, 2020. The rater maintained AMAT to “an Equal-weight” but assigned new target price of $60.
Is Applied Materials Inc. [NASDAQ:AMAT] a Good Buy Right Now?
It should be noted that AMAT technical indicators for short, intermediate as well as long term progress have placed an overall average of 100% as Buy. The average signal changed from 88% Buy in the last week and compares with 100% Buy in the past month. Data from Applied Materials Inc.’s Trend Spotter indicated that the signals were Strongest. The stock current average is 5.87 million shares in the past 20 days and the short term average signal indicates a 100% Buy. In the last 50 days, the average trading volume was 7.03 million shares while the medium term average advocated for 100% Buy. The average long-term signal stands at 100% Buy and the 100-day average volume stands at 7.7 million shares.
AMAT Price Performance
On Wall Street, Applied Materials Inc. [NASDAQ:AMAT] finished Tuesday’s session up 3.14% at $89.60. The stock went up to $89.62 at the same session while its lowest single day price was $86.40. In the last five days, it saw a rise of about 5.57%, Applied Materials Inc. shares gained by almost 3.82% since the beginning of the year. However, the share price has dropped to as low as -1.11% below its one year high. On 01/05/21, the company shares recorded $89.62, the highest single-day price it has got to in the last 52-weeks and a 52-week low was seen on 01/04/21, the same year at $86.15. The company’s shares have inclined by 49.61% in the past year. The 50-day SMA achieved is $78.25 while the 200-day SMA is $62.88. Volume dropped to 6.99 million from 8.45 million in the previous session.
Applied Materials Inc. [AMAT] Valuation Measures
Notably, Applied Materials Inc. [AMAT] stock can be classified as a good candidate in the listing of underestimated low-priced Semiconductor Equipment & Materials companies to purchase soonest possible with the prevailing 12-month PE ratio of 22.85. The measure means the stock is exchanging at a discount as compared to the 32.75x trailing earnings of the industry. It can be helpful for investors to consider historical price-sales ratio, more specifically, a 4.79 PS value ratio is reported for the last one year of reported earnings. That is higher than the industry average of 2.64 which means AMAT serve an attractive investment opportunity compared to its competitors.
AMAT Stock Support And Resistance Levels
On the 24-hour scale, the immediate backing is perceived around 87.46 level, and in case of violation of this particular level, it will cause more drop to 85.32 level. On the upper level, 91.76 is still the key resistance. The stock may increase to the subsequent resistance at 90.68. The Relative Strength Index (RSI) pinned on the 14-day chart is 67.34, implying a neutral technical stance while the MACD stands at 1.10, meaning price will increase in the next trading period. Percent R indicator moved to 14.21%, implying bullish price movement. Stochastic %K at 57.39% suggest selling the stock.
What is the short interest in Applied Materials Inc.?
Short interest in the Applied Materials Inc. stock has surged, increasing by 0.28 million shares to total 11.56 million shares on Dec 14, 2020. The interest had seen shares on Nov 12, 2020 stand at 11.84 million, data from Yahoo Finance shows. The decrease of -2.42% suggests the stock saw some decreased bullish sentiment. The stock’s days to cover (short ratio) moved to while the shorted shares account for just 1.27% of the overall float for the stock.
Applied Materials Inc.’s Biggest Shareholders: Who Owns Applied Materials Inc. [AMAT]?
Filings by The Vanguard Group, Inc. showed that the firm now holds a total of 69,521,161 shares or roughly 7.61% of the outstanding AMAT shares. This means their shares have reduced by -1,060,122 from the 69,521,161 the investor reportedly held in its prior 13-F filing. With the conclusion of the sale, BlackRock Fund Advisors updated stake is worth $3,898,935,009. Details in the latest 13F filings reveal that T. Rowe Price Associates, Inc. disposed off their -18.70% stake valued at $3,838,959,760 while SSgA Funds Management, Inc. cut theirs at $3,621,528,706. During the last quarter, T. Rowe Price Associates, Inc. liquidated -10,703,222 of its shares in Applied Materials Inc. while SSgA Funds Management, Inc. sold -199,012 shares. The Capital Research & Management Co’s holdings currently number 21,616,165 shares at $1936808384.0. According to the firm’s last 13F report, Capital Research & Management Co shares in the company at filing stood at 18,963,858 shares, roughly $1,564,139,008.
AMAT Earnings Forecast For The Current Quarter
Applied Materials Inc. [AMAT] is expected to report strong earnings results for the quarter ending on Jan 2021. Consensus estimates give the company expected revenues of $4.96B and an earnings per share of $1.26 for Jan 2021. Looking further ahead, the company is expected to report revenue of $4.82B at an EPS of $1.21 for Apr 2021. The estimates represent upside of 5.00% and 7.56% in the company’s revenue and earnings per share, respectively, on a year-on-year basis.
AMAT Earnings Estimates For The Current Year
For the financial year, Applied Materials Inc. [NASDAQ:AMAT] is expected to bring in revenue of $19.57B. The returns are nearly $2.37 billion higher than the company’s actual revenue recorded in the fiscal year 2020. In terms of EPS for the 2021, estimate put it at 5, higher than that of FY20 by $0.83. Estimates put this year’s earnings growth at 19.90%, 7.60% for the next, and at an annual 15.97% over the next 5-year period. As for sales, forecasts are for an increase of 13.70% in the current fiscal year and a further 5.00% over the following year.