Applied Materials Inc. (NASDAQ:AMAT): A Fundamentally Weighted Stock for Long-Term Investors

Applied Materials Inc. (NASDAQ:AMAT) previous close was $55.02 while the outstanding shares total 916.00M. The firm has a beta of 1.35, a 12-month trailing P/E ratio of 17.52, and a growth ratio of 0.89. AMAT’s shares traded lower over the last trading session, losing -1.60% on 05/21/20. The shares fell to a low of $54.845 before closing at $54.14. Intraday shares traded counted 2.82 million, which was 74.31% higher than its 30-day average trading volume of 10.98M. The stock’s Relative Strength Index (RSI) is 55.07, with weekly volatility at 4.26% and ATR at 2.62. The AMAT stock’s 52-week price range has touched low of $36.64 and a $69.44 high.

Investors have identified the Semiconductor Equipment & Materials company Applied Materials Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $52.85 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.

Applied Materials Inc. (AMAT) Fundamentals that are to be considered.

When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For AMAT, the company has in raw cash 3.42 billion on their books with 600.0 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on an incline. In terms of their assets, the company currently has 10769000000 million total, with 4569000000 million as their total liabilities.

AMAT were able to record 885.0 million as free cash flow during the third quarter of the year, this saw their quarterly net cash flow reduce by 295.0 million. In cash movements, the company had a total of 987.0 million as operating cash flow.

Potential earnings growth for Applied Materials Inc. (AMAT)

In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the third quarter of the year, Applied Materials Inc. recorded a total of 4.16 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 9.83% coming in sequential stages and their sales for the third quarter increasing by 9.8%.

What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 2.3 billion trying to sell their products during the last quarter, with the result yielding a gross income of 1.86 billion. This allows shareholders to hold on to 916.00M with the revenue now reading 0.97 cents per share. This is a figure that is close to analyst’s prediction for their fourth quarter (0.91 cents a share).

Having a look at the company’s valuation, the company is expected to record 3.04 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on AMAT sounds very interesting.

Is the stock of AMAT attractive?

In related news, Director, Forrest Stephen R sold 2,000 shares of the company’s stock in a transaction that recorded on Feb 14. The sale was performed at an average price of 67.40, for a total value of 134,800. As the sale deal closes, the SVP, Semi. Products Group, Raja Prabu G. now sold 50,000 shares of the company’s stock, valued at 3,036,500. Also, President and CEO, DICKERSON GARY E sold 1,000,000 shares of the company’s stock in a deal that was recorded on Nov 19. The shares were price at an average price of 61.11 per share, with a total market value of 61,110,000. Following this completion of acquisition, the Director, Forrest Stephen R now holds 3,000 shares of the company’s stock, valued at 188,580. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.60%.

21 out of 26 analysts covering the stock have rated it a Buy, while 4 have maintained a Hold recommendation on Applied Materials Inc.. 0 analysts has assigned a Sell rating on the AMAT stock. The 12-month mean consensus price target for the company’s shares has been set at $65.48.