Market Runner: Could Applied Materials, Inc. See a Reversal After Breaking Its 52-Week High?

Market Runner: Could Applied Materials, Inc. See a Reversal After Breaking Its 52 Week High?

The stock of Applied Materials, Inc. (NASDAQ:AMAT) hit a new 52-week high and has $34.23 target or 7.00% above today’s $31.99 share price. The 7 months bullish chart indicates low risk for the $34.58B company. The 1-year high was reported on Nov, 28 by Barchart.com. If the $34.23 price target is reached, the company will be worth $2.42B 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 4.17M shares traded hands. Applied Materials, Inc. (NASDAQ:AMAT) has risen 52.24% since April 25, 2016 and is uptrending. It has outperformed by 46.23% 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 $713.44M for 12.12 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. $35 is the highest target while $12 is the lowest. The $27.26 average target is -14.79% below today’s ($31.99) stock price. Applied Materials Inc. has been the topic of 65 analyst reports since August 4, 2015 according to StockzIntelligence Inc. The firm has “Buy” rating by Deutsche Bank given on Friday, February 19. As per Friday, May 27, the company rating was maintained by Stifel Nicolaus. The rating was downgraded by CLSA on Thursday, December 10 to “Outperform”. The company was downgraded on Monday, October 5 by RBC Capital Markets. On Friday, May 20 the stock rating was maintained by Cowen & Co with “Outperform”. The company was upgraded on Wednesday, May 25 by Citigroup. As per Thursday, August 13, the company rating was upgraded by Zacks. Cowen & Co maintained Applied Materials, Inc. (NASDAQ:AMAT) rating on Friday, August 14. Cowen & Co has “Outperform” rating and $24 price target. The firm has “Buy” rating given on Thursday, August 13 by Deutsche Bank. CLSA upgraded Applied Materials, Inc. (NASDAQ:AMAT) on Friday, September 25 to “Buy” rating.

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 2016 Q2. Its up 0.13, from 1.04 in 2016Q1. The ratio is positive, 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.
Chemung Canal Tru has 29,420 shares for 0.17% of their US portfolio. Voloridge Investment Mngmt Limited Liability Com has invested 1.56% of its portfolio in Applied Materials, Inc. (NASDAQ:AMAT). Conning Inc holds 0.03% of its portfolio in Applied Materials, Inc. (NASDAQ:AMAT) for 28,245 shares. Pnc Serv Group last reported 0.01% of its portfolio in the stock. Franklin Resource Inc reported 5.82M shares or 0.08% of all its holdings. Ladenburg Thalmann Ser Inc accumulated 62,175 shares or 0.02% of the stock. Moreover, Numeric Invsts Ltd has 0.01% invested in Applied Materials, Inc. (NASDAQ:AMAT) for 26,400 shares. Profund Advsrs Limited Co accumulated 0.11% or 94,966 shares. Deere & has invested 0.09% of its portfolio in Applied Materials, Inc. (NASDAQ:AMAT). New York Life Tru Company accumulated 1,468 shares or 0.17% of the stock. Reynders Mcveigh Cap Mgmt Limited last reported 9,469 shares in the company. The Colorado-based Centurylink Inv Communication has invested 0.42% in Applied Materials, Inc. (NASDAQ:AMAT). Thompson Davis & holds 4,232 shares or 0.16% of its portfolio. Moreover, Polar Cap Llp has 0.31% invested in Applied Materials, Inc. (NASDAQ:AMAT) for 687,537 shares. Whittier Tru Company Of Nevada Inc last reported 0.01% of its portfolio in the stock.

Insider Transactions: Since June 3, 2016, the stock had 0 buys, and 5 insider sales for $11.74 million net activity. Shares for $3.00M were sold by Nalamasu Omkaram on Thursday, September 1. 5,000 Applied Materials, Inc. (NASDAQ:AMAT) shares with value of $150,000 were sold by Forrest Stephen R. $6.83 million worth of Applied Materials, Inc. (NASDAQ:AMAT) shares were sold by DICKERSON GARY E. 40,000 shares with value of $974,800 were sold by Salehpour Ali on Friday, June 3.

More important 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 Wsj.com published article titled: “Applied Materials Profit Rises 21% But New Orders Miss Expectations”, Forbes.com published: “Ex-Dividend Reminder: Perrigo Company, Evercore Partners and Applied Materials” on November 18, 2016. More interesting news about Applied Materials, Inc. (NASDAQ:AMAT) was released by: Nasdaq.com and their article: “Applied Materials (AMAT) Q4 Earnings: Surprise in Store?” with publication date: November 15, 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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