Applied Materials Inc. [AMAT] stock Downgrade by Barclays analyst, price target now $90

Applied Materials Inc. [NASDAQ: AMAT] loss -0.35% or -0.42 points to close at $118.54 with a heavy trading volume of 5775212 shares. The company report on March 1, 2023 that Applied Materials’ Innovative Pattern-Shaping Technology Reduces the Cost, Complexity and Environmental Impact of Advanced Chip Manufacturing.

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Applied Materials, Inc. today unveiled a breakthrough in patterning technology that allows chipmakers to create high-performance transistors and interconnect wiring with fewer EUV lithography steps, thereby lowering the cost, complexity and environmental impact of advanced chipmaking.

Customers increasingly use EUV double patterning to print chip features smaller than the resolution limits of EUV to optimize chip area and cost. Using EUV double patterning, chipmakers split a high-density pattern in half and produce two masks that adhere to the resolution limits of EUV. Both halves of the pattern are combined on intermediate patterning films and then etched into the wafer. While double patterning is effective at increasing feature density, it adds design and patterning complexity along with process steps that consume time, energy, materials and water – and increase the cost of wafer fabs and wafer production.

It opened the trading session at $119.85, the shares rose to $121.50 and dropped to $118.22, the range by which the price of stock traded the whole day. The daily chart for AMAT points out that the company has recorded 29.11% gains over the past six months. However, it is still -66.68% lower than its most recent low trading price.

If we look at the average trading volume of 6.32M shares, AMAT reached to a volume of 5775212 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying about Applied Materials Inc. [AMAT]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for AMAT shares is $129.51 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on AMAT stock is a recommendation set at 2.10. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Barclays have made an estimate for Applied Materials Inc. shares, keeping their opinion on the stock as Underweight, with their previous recommendation back on January 23, 2023. While these analysts kept the previous recommendation, Stifel raised their target price to Buy. The new note on the price target was released on January 18, 2023, representing the official price target for Applied Materials Inc. stock. Previously, the target price had yet another raise to $125, while Loop Capital analysts kept a Buy rating on AMAT stock.

The Average True Range (ATR) for Applied Materials Inc. is set at 3.86, with the Price to Sales ratio for AMAT stock in the period of the last 12 months amounting to 3.80. The Price to Book ratio for the last quarter was 7.46, with the Price to Cash per share for the same quarter was set at 4.81. Price to Free Cash Flow for AMAT in the course of the last twelve months was 31.15 with Quick ratio for the last quarter at 1.50.

Trading performance analysis for AMAT stock

Applied Materials Inc. [AMAT] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 5.77. With this latest performance, AMAT shares dropped by -4.60% in over the last four-week period, additionally plugging by 29.11% over the last 6 months – not to mention a drop of -9.26% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for AMAT stock in for the last two-week period is set at 57.56, with the RSI for the last a single of trading hit 60.11, and the three-weeks RSI is set at 56.73 for Applied Materials Inc. [AMAT]. The present Moving Average for the last 50 days of trading for this stock 110.65, while it was recorded at 117.87 for the last single week of trading, and 100.97 for the last 200 days.

Applied Materials Inc. [AMAT]: A deeper dive into fundamental analysis

Operating Margin for any stock indicates how profitable investing would be, and Applied Materials Inc. [AMAT] shares currently have an operating margin of +29.96 and a Gross Margin at +46.30. Applied Materials Inc.’s Net Margin is presently recorded at +25.40.

Return on Equity for this stock inclined to 53.39, with Return on Assets sitting at 24.83.

Applied Materials Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.50 and a Current Ratio set at 2.30.

Applied Materials Inc. [AMAT]: An earnings per share (EPS) analysis

The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for AMAT. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Applied Materials Inc. go to 12.48%.

An analysis of insider ownership at Applied Materials Inc. [AMAT]

There are presently around $78,935 million, or 79.90% of AMAT stock, in the hands of institutional investors. The top three institutional holders of AMAT stocks are: VANGUARD GROUP INC with ownership of 73,671,156, which is approximately 0.933% of the company’s market cap and around 0.35% of the total institutional ownership; BLACKROCK INC., holding 69,228,259 shares of the stock with an approximate value of $8.21 billion in AMAT stocks shares; and STATE STREET CORP, currently with $4.52 billion in AMAT stock with ownership of nearly -0.712% of the company’s market capitalization.

Positions in Applied Materials Inc. stocks held by institutional investors increased at the end of Thursday and at the time of the Thursday reporting period, where 825 institutional holders increased their position in Applied Materials Inc. [NASDAQ:AMAT] by around 47,030,085 shares. Additionally, 754 investors decreased positions by around 43,387,235 shares, while 216 investors held positions by with 575,472,888 shares. The mentioned changes placed institutional holdings at 665,890,208 shares, according to the latest SEC report filing. AMAT stock had 233 new institutional investments in for a total of 5,734,718 shares, while 103 institutional investors sold positions of 6,892,681 shares during the same period.


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