Applied Materials (NASDAQ:AMAT) to Buyback $6.00 billion in Stock

Applied Materials (NASDAQ:AMAT) announced that its Board of Directors has authorized a stock repurchase program, which allows the company to repurchase $6.00 billion in shares on Wednesday, February 14th, EventVestor reports. This repurchase authorization allows the manufacturing equipment provider to buy shares of its stock through open market purchases. Shares repurchase programs are often a sign that the company’s board believes its shares are undervalued.

AMAT has been the subject of a number of analyst reports. Susquehanna Bancshares raised shares of Applied Materials from a “neutral” rating to a “positive” rating and increased their target price for the company from $60.00 to $72.00 in a research report on Tuesday, January 16th. Bank of America increased their target price on shares of Applied Materials from $65.00 to $76.00 and gave the company a “buy” rating in a research report on Wednesday, November 15th. B. Riley reaffirmed a “buy” rating and issued a $71.00 price target on shares of Applied Materials in a report on Tuesday, January 16th. Vetr raised shares of Applied Materials from a “hold” rating to a “buy” rating and set a $59.06 price target for the company in a report on Friday, January 26th. Finally, UBS Group raised shares of Applied Materials from a “neutral” rating to a “positive” rating in a report on Tuesday, January 16th. Twenty-six investment analysts have rated the stock with a buy rating and one has issued a strong buy rating to the stock. Applied Materials presently has an average rating of “Buy” and a consensus price target of $64.10.

Applied Materials (NASDAQ AMAT) traded up $0.54 during midday trading on Wednesday, reaching $60.23. 11,882,120 shares of the company’s stock traded hands, compared to its average volume of 17,140,000. The firm has a market cap of $63,280.00, a PE ratio of 16.78, a PEG ratio of 1.16 and a beta of 1.58. The company has a quick ratio of 2.25, a current ratio of 2.96 and a debt-to-equity ratio of 0.62. Applied Materials has a 12 month low of $37.41 and a 12 month high of $62.40.

Applied Materials (NASDAQ:AMAT) last issued its quarterly earnings data on Wednesday, February 14th. The manufacturing equipment provider reported $1.06 earnings per share for the quarter, topping the consensus estimate of $0.98 by $0.08. Applied Materials had a net margin of 18.53% and a return on equity of 45.17%. The business had revenue of $4.20 billion during the quarter, compared to the consensus estimate of $4.10 billion. During the same quarter in the previous year, the firm earned $0.67 EPS. sell-side analysts predict that Applied Materials will post 4.39 earnings per share for the current year.

The firm also recently declared a quarterly dividend, which will be paid on Thursday, June 14th. Investors of record on Thursday, May 24th will be given a $0.20 dividend. This is an increase from Applied Materials’s previous quarterly dividend of $0.10. The ex-dividend date of this dividend is Wednesday, May 23rd. This represents a $0.80 annualized dividend and a yield of 1.33%. Applied Materials’s dividend payout ratio is 11.14%.

In other Applied Materials news, Director Thomas J. Iannotti sold 15,000 shares of the business’s stock in a transaction on Monday, March 12th. The shares were sold at an average price of $61.47, for a total value of $922,050.00. Following the transaction, the director now directly owns 76,967 shares of the company’s stock, valued at approximately $4,731,161.49. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, VP Ali Salehpour sold 125,125 shares of the business’s stock in a transaction on Friday, December 29th. The shares were sold at an average price of $51.47, for a total transaction of $6,440,183.75. The disclosure for this sale can be found here. In the last quarter, insiders sold 322,716 shares of company stock valued at $16,850,796. 0.35% of the stock is owned by insiders.

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Applied Materials Company Profile

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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