Share Repurchase Plan Announced by Applied Materials (AMAT) Board

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

Shares of Applied Materials (AMAT) traded up $2.41 on Thursday, reaching $51.96. The company had a trading volume of 22,120,699 shares, compared to its average volume of 13,870,620. Applied Materials has a 1 year low of $34.58 and a 1 year high of $60.89. The company has a quick ratio of 2.43, a current ratio of 3.14 and a debt-to-equity ratio of 0.57. The company has a market capitalization of $54,150.00, a price-to-earnings ratio of 16.17, a price-to-earnings-growth ratio of 0.97 and a beta of 1.72.

Applied Materials (NASDAQ:AMAT) last released its quarterly earnings data on Wednesday, February 14th. The manufacturing equipment provider reported $1.06 earnings per share for the quarter, beating the consensus estimate 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 for the quarter, compared to analyst estimates of $4.10 billion. During the same period in the prior year, the company posted $0.67 EPS. equities research analysts expect that Applied Materials will post 4.04 earnings per share for the current fiscal year.

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

A number of equities analysts have recently commented on AMAT shares. UBS Group upgraded Applied Materials from a “neutral” rating to a “positive” rating in a research note on Tuesday, January 16th. Needham & Company LLC lifted their price objective on Applied Materials to $66.00 and gave the stock a “positive” rating in a research note on Friday, November 17th. Susquehanna Bancshares upgraded Applied Materials from a “neutral” rating to a “positive” rating and lifted their price objective for the stock from $60.00 to $72.00 in a research note on Tuesday, January 16th. Zacks Investment Research lowered Applied Materials from a “buy” rating to a “hold” rating in a research note on Thursday, November 23rd. Finally, ValuEngine upgraded Applied Materials from a “hold” rating to a “buy” rating in a research note on Friday, February 2nd. Two equities research analysts have rated the stock with a hold rating, twenty-four have assigned a buy rating and one has given a strong buy rating to the company’s stock. The company has a consensus rating of “Buy” and an average target price of $63.84.

In other news, Director Stephen R. Forrest sold 4,000 shares of the company’s stock in a transaction that occurred on Wednesday, January 3rd. The stock was sold at an average price of $53.67, for a total value of $214,680.00. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. Also, VP Ali Salehpour sold 125,125 shares of the company’s stock in a transaction that occurred on Friday, December 29th. The shares were sold at an average price of $51.47, for a total value of $6,440,183.75. The disclosure for this sale can be found here. Over the last quarter, insiders sold 312,716 shares of company stock worth $16,218,746. Corporate 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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