Citigroup has raised its price target for Applied Materials, Inc. (NASDAQ: AMAT) from $400.00 to $420.00, reflecting a positive outlook for the semiconductor manufacturing equipment provider. This adjustment, communicated in a note to investors, indicates a potential upside of approximately 17.28% from the stock’s last closing price. Citigroup maintains a “buy” rating on Applied Materials, underscoring the firm’s confidence in its growth trajectory.
Other analysts have also weighed in on Applied Materials’ stock performance. On December 15, 2023, Jefferies Financial Group increased its price target from $260.00 to $360.00, also assigning a “buy” rating. Similarly, Wells Fargo & Company elevated its price target from $350.00 to $435.00 and offered an “overweight” rating. Meanwhile, Deutsche Bank Aktiengesellschaft reaffirmed a “buy” rating and set a target price of $450.00.
A total of twenty-eight research analysts have rated Applied Materials with a “buy” rating, while six analysts provided a “hold” rating. According to data from MarketBeat.com, the average rating for the stock is classified as a “Moderate Buy,” with an average price target of $361.03.
Quarterly Earnings and Future Guidance
Applied Materials reported its quarterly earnings on February 12, 2024, revealing earnings per share (EPS) of $2.38. This figure surpassed analysts’ expectations of $2.19 by $0.19. The company reported a net margin of 24.67% and a return on equity of 39.26%, with total revenues reaching $7.01 billion, exceeding the anticipated $6.88 billion.
Despite this positive performance, the firm’s quarterly revenue was down 2.1% year-over-year, although it maintained its EPS guidance for Q2 2026, projecting a range of $2.440 to $2.840. Analysts forecast that Applied Materials will achieve an EPS of $9.38 for the current year.
Insider Trading Activity
In related news, there has been notable insider trading activity at Applied Materials. Chief Accounting Officer Adam Sanders sold 609 shares on December 1, 2023, at an average price of $255.53, totaling approximately $155,617.77. Following this transaction, Sanders holds 4,413 shares valued at around $1,127,653.89, marking a 12.13% decrease in his holdings.
Senior Vice President Teri A. Little also participated in insider trading by selling 4,000 shares on November 25, 2023, for a total of $952,960.00. Post-transaction, Little owns 84,351 shares, worth about $20,095,782.24, representing a 4.53% decrease in her position. Over the past 90 days, insiders have sold 8,609 shares of Applied Materials stock, amounting to $2,044,898, with insiders collectively owning 0.30% of the company.
Institutional Investor Activity
Institutional investors have recently adjusted their holdings in Applied Materials. Vanguard Group Inc. increased its position by 0.4% during the fourth quarter, acquiring an additional 330,197 shares. State Street Corp also expanded its stake by 1.0%, owning 38,920,984 shares after purchasing an additional 391,540 shares.
Capital Research Global Investors made significant changes as well, raising its holdings by 119.8% in the fourth quarter, now owning 32,707,049 shares. Geode Capital Management LLC and AllianceBernstein L.P. have also increased their stakes, with the latter raising its holdings by 72.5% during the second quarter. Overall, institutional investors own approximately 80.56% of Applied Materials’ stock.
As Applied Materials continues to navigate its role in the semiconductor manufacturing industry, these developments suggest a promising outlook, bolstered by strong earnings and positive analyst ratings. The company, headquartered in Santa Clara, California, remains a key player in providing equipment and services crucial for the production of integrated circuits and advanced materials across the electronics supply chain.
