Fintel reports that on August 21, 2023, Goldman Sachs maintained coverage of Applied Materials (NASDAQ:AMAT) with a Buy recommendation.

Analyst Price Forecast Suggests 1.99% Upside

As of August 2, 2023, the average one-year price target for Applied Materials is 145.50. The forecasts range from a low of 87.87 to a high of $183.75. The average price target represents an increase of 1.99% from its latest reported closing price of 142.66.

See our leaderboard of companies with the largest price target upside.

The projected annual revenue for Applied Materials is 24,715MM, a decrease of 6.89%. The projected annual non-GAAP EPS is 6.84.

Applied Materials Declares $0.32 Dividend

On June 8, 2023 the company declared a regular quarterly dividend of $0.32 per share ($1.28 annualized). Shareholders of record as of August 24, 2023 will receive the payment on September 14, 2023. Previously, the company paid $0.32 per share.

At the current share price of $142.66 / share, the stock’s dividend yield is 0.90%.

Looking back five years and taking a sample every week, the average dividend yield has been 1.30%, the lowest has been 0.59%, and the highest has been 2.76%. The standard deviation of yields is 0.53 (n=236).

The current dividend yield is 0.76 standard deviations below the historical average.

Additionally, the company’s dividend payout ratio is 0.17. The payout ratio tells us how much of a company’s income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company’s income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend – not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.

The company’s 3-Year dividend growth rate is 0.45%, demonstrating that it has increased its dividend over time.

What is the Fund Sentiment?

There are 3011 funds or institutions reporting positions in Applied Materials. This is an increase of 74 owner(s) or 2.55% in the last quarter. Average portfolio weight of all funds dedicated to AMAT is 0.57%, an increase of 6.90%. Total shares owned by institutions decreased in the last three months by 2.23% to 755,592K shares. The put/call ratio of AMAT is 1.26, indicating a bearish outlook.

What are Other Shareholders Doing?

Capital World Investors holds 36,698K shares representing 4.37% ownership of the company. In it’s prior filing, the firm reported owning 32,833K shares, representing an increase of 10.53%. The firm increased its portfolio allocation in AMAT by 22.39% over the last quarter.

VTSMX – Vanguard Total Stock Market Index Fund Investor Shares holds 26,164K shares representing 3.12% ownership of the company. In it’s prior filing, the firm reported owning 26,155K shares, representing an increase of 0.03%. The firm increased its portfolio allocation in AMAT by 16.51% over the last quarter.

Capital International Investors holds 20,883K shares representing 2.49% ownership of the company. In it’s prior filing, the firm reported owning 20,722K shares, representing an increase of 0.77%. The firm increased its portfolio allocation in AMAT by 11.22% over the last quarter.

VFINX – Vanguard 500 Index Fund Investor Shares holds 19,673K shares representing 2.34% ownership of the company. In it’s prior filing, the firm reported owning 19,888K shares, representing a decrease of 1.09%. The firm increased its portfolio allocation in AMAT by 15.71% over the last quarter.

Geode Capital Management holds 16,991K shares representing 2.02% ownership of the company. In it’s prior filing, the firm reported owning 15,871K shares, representing an increase of 6.59%. The firm increased its portfolio allocation in AMAT by 13.96% over the last quarter.

Applied Materials Background Information
(This description is provided by the company.)

Applied Materials, Inc. is the leader in materials engineering solutions used to produce virtually every new chip and advanced display in the world. Its expertise in modifying materials at atomic levels and on an industrial scale enables customers to transform possibilities into reality.

This article originally appeared on Fintel

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