Price Action Don’t Lie: Time to Reconsider Applied Materials, Inc. After Reaching 52-Week High?

Price Action Don't Lie: Time to Reconsider Applied Materials, Inc. After Reaching 52 Week High?

The stock of Applied Materials, Inc. (NASDAQ:AMAT) hit a new 52-week high and has $33.41 target or 5.00% above today’s $31.82 share price. The 8 months bullish chart indicates low risk for the $34.74B company. The 1-year high was reported on Nov, 23 by Barchart.com. If the $33.41 price target is reached, the company will be worth $1.74 billion more.
The 52-week high event is an important milestone for every stock because it shows very positive momentum and is time when buyers come in. During such notable technical setup, fundamental investors usually stay away and are careful shorting or selling the stock. About 3.11M shares traded hands. Applied Materials, Inc. (NASDAQ:AMAT) has risen 51.17% since April 21, 2016 and is uptrending. It has outperformed by 45.84% the S&P500.

Analysts await Applied Materials, Inc. (NASDAQ:AMAT) to report earnings on February, 16. They expect $0.66 earnings per share, up 153.85% or $0.40 from last year’s $0.26 per share. AMAT’s profit will be $720.55M for 12.06 P/E if the $0.66 EPS becomes a reality. After $0.66 actual earnings per share reported by Applied Materials, Inc. for the previous quarter, Wall Street now forecasts 0.00% EPS growth.

Applied Materials, Inc. (NASDAQ:AMAT) Ratings Coverage

Out of 22 analysts covering Applied Materials Inc. (NASDAQ:AMAT), 20 rate it a “Buy”, 0 “Sell”, while 2 “Hold”. This means 91% are positive. Applied Materials Inc. has been the topic of 65 analyst reports since August 4, 2015 according to StockzIntelligence Inc. The rating was upgraded by Zacks to “Sell” on Thursday, August 13. UBS maintained the stock with “Buy” rating in Friday, May 20 report. The firm has “Buy” rating given on Friday, May 27 by Stifel Nicolaus. The firm has “Buy” rating given on Monday, June 27 by DA Davidson. As per Thursday, August 13, the company rating was maintained by Deutsche Bank. The stock of Applied Materials, Inc. (NASDAQ:AMAT) has “Conviction Buy” rating given on Wednesday, February 3 by Goldman Sachs. As per Wednesday, April 6, the company rating was downgraded by DA Davidson. The stock has “Outperform” rating given by Cowen & Co on Friday, August 14. Pacific Crest maintained the stock with “Overweight” rating in Thursday, March 10 report. The firm has “Underperform” rating given on Monday, October 5 by RBC Capital Markets.

According to Zacks Investment Research, “Applied Materials develops, manufactures, markets and services semiconductor wafer fabrication equipment and related spare parts for the worldwide semiconductor industry. Customers for these products include semiconductor wafer manufacturers and semiconductor integrated circuit manufacturers, who either use the Ics they manufacture in their own products or sell them to other companies. These ICs are the key components in most advanced electronic products such as computers, telecommunications devices, automotive engine management systems and electronic games.”

Insitutional Activity: The institutional sentiment increased to 1.17 in Q2 2016. Its up 0.13, from 1.04 in 2016Q1. The ratio improved, as 47 funds sold all Applied Materials, Inc. shares owned while 232 reduced positions. 88 funds bought stakes while 202 increased positions. They now own 848.54 million shares or 6.77% less from 910.17 million shares in 2016Q1.
Hl Fin Limited Liability Company holds 0.02% or 38,769 shares in its portfolio. Meeder Asset last reported 59,252 shares in the company. Archford Strategies Ltd Liability Corporation accumulated 0% or 57 shares. Private Advisor Group Inc Lc holds 14,353 shares or 0.01% of its portfolio. Schroder Inv Gp owns 900 shares or 0% of their US portfolio. Deutsche National Bank Ag, a Germany-based fund reported 12.46M shares. Guinness Asset Ltd has 0.81% invested in the company for 123,270 shares. Apg Asset Nv last reported 1.85 million shares in the company. Buckingham Cap Inc reported 120,420 shares or 0.77% of all its holdings. Moreover, Gotham Asset Mngmt Ltd Co has 0.03% invested in Applied Materials, Inc. (NASDAQ:AMAT) for 111,726 shares. Blackrock Advisors Lc has 0.06% invested in the company for 2.37M shares. C M Bidwell Associate Limited holds 2.05% of its portfolio in Applied Materials, Inc. (NASDAQ:AMAT) for 344,440 shares. Ardsley Advisory has 27,500 shares for 0.11% of their US portfolio. Loring Wolcott Coolidge Fiduciary Advsr Llp Ma holds 1,444 shares or 0% of its portfolio. Renaissance Ltd Co has 5.28M shares for 0.24% of their US portfolio.

Insider Transactions: Since May 25, 2016, the stock had 0 buys, and 5 selling transactions for $11.74 million net activity. Another trade for 99,491 shares valued at $3.00 million was made by Nalamasu Omkaram on Thursday, September 1. Forrest Stephen R sold $150,000 worth of stock. DICKERSON GARY E sold $6.83M worth of stock. $974,800 worth of Applied Materials, Inc. (NASDAQ:AMAT) was sold by Salehpour Ali on Friday, June 3. $355,050 worth of Applied Materials, Inc. (NASDAQ:AMAT) shares were sold by Iannotti Thomas J.

More notable recent Applied Materials, Inc. (NASDAQ:AMAT) news were published by: Wsj.com which released: “More Boom, Less Bust for Applied Materials” on November 20, 2016, also Nasdaq.com with their article: “Applied Materials, Inc. (AMAT) Ex-Dividend Date Scheduled for November 22, 2016” published on November 21, 2016, Fortune.com published: “Applied Materials Shares Slide 6% On Lower-Than-Expected Sales” on November 17, 2016. More interesting news about Applied Materials, Inc. (NASDAQ:AMAT) were released by: Nasdaq.com and their article: “Applied Materials (AMAT) Q4 Earnings: Surprise in Store?” published on November 15, 2016 as well as Forbes.com‘s news article titled: “Ex-Dividend Reminder: Perrigo Company, Evercore Partners and Applied Materials” with publication date: November 18, 2016.

AMAT Company Profile

Applied Materials, Inc. (Applied), incorporated on March 18, 1987, provides manufacturing equipment, services and software to the semiconductor, display, solar photovoltaic (PV) and related industries across the world. The Firm operates in four divisions: Silicon Systems, Applied Global Services, Display, and Energy and Environmental Solutions. The Company’s manufacturing activities consist of assembly, test and integration of various commercial parts, components and subassemblies that are used to manufacture systems. The Firm caters to customers, including manufacturers of semiconductor chips, liquid crystal and other displays, solar PV cells, and other electronic devices. It has implemented a distributed manufacturing model under which manufacturing and supply chain activities are conducted in various countries, including Germany, Israel, Italy, Singapore, Taiwan, the United States and other countries in Asia.

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