Applied Materials Inc. (NASDAQ:AMAT) shares traded higher over the last trading session, gaining 4.60% on 05/24/21. The shares fell to a low of $129.59 before closing at $134.58. Intraday shares traded counted 11.34 million, which was -6.96% lower than its 30-day average trading volume of 10.60M. AMAT’s previous close was $128.66 while the outstanding shares total 915.00M. The firm has a beta of 1.46, a 12-month trailing P/E ratio of 32.19, and a growth ratio of 1.29. The stock’s Relative Strength Index (RSI) is 57.48, with weekly volatility at 4.22% and ATR at 5.21. The AMAT stock’s 52-week price range has touched low of $53.31 and a $146.00 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 $125.08 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. In terms of their assets, the company currently has 14.27 billion total, with 4.5 billion as their total liabilities.
AMAT were able to record 1.3 billion as free cash flow during the 08/19/2021 quarter of the year, this saw their quarterly net cash flow reduce by 862.0 million. In cash movements, the company had a total of 1.42 billion 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 08/19/2021 quarter of the year, Applied Materials Inc. recorded a total of 5.16 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 19.37% coming in sequential stages and their sales for the 08/19/2021 quarter increasing by 9.18%.
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 2.81 billion trying to sell their products during the last quarter, with the result yielding a gross income of 2.35 billion. This allows shareholders to hold on to 915.00M with the recently reported earning now reading 1.24 cents per share. This is a figure that compared to analyst’s prediction for their 08/19/2021 (1.63 cents a share).
Having a look at the company’s valuation, the company is expected to record 6.68 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, Senior Vice President, CFO, Durn Daniel sold 5,000 shares of the company’s stock in a transaction that recorded on May 10. The sale was performed at an average price of 127.89, for a total value of 639,431. As the sale deal closes, the Senior Vice President, CFO, Durn Daniel now sold 5,500 shares of the company’s stock, valued at 731,263. Also, President and CEO, DICKERSON GARY E sold 105,184 shares of the company’s stock in a deal that was recorded on Apr 09. The shares were price at an average price of 140.00 per share, with a total market value of 14,725,760. Following this completion of acquisition, the SVP, Semi. Products Group, Raja Prabu G. now holds 50,000 shares of the company’s stock, valued at 7,047,500. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.50%.
21 out of 28 analysts covering the stock have rated it a Buy, while 6 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 $156.38.