Invesotrs Wanting To Tap Brakes On Applied Materials, Inc. (AMAT)?

Considering all key technical indicators, a 24% Sell signal has occurred for Applied Materials, Inc. (NASDAQ:AMAT). The stock is also flashing a Sell from the Barchart TrendSpotter trading system. Traders hoping to speculate on the AMAT’s short-term trajectory should know that short terms indicators for the stock averaged 20% Buy with an average daily trading volume over the past 20 days at 12783265 shares. AMAT stock has overall a 0.25% Sell signal considering medium term indicators and the 50-day average daily volume remained almost 12835092 shares. It’s also worth noting that the stock, whose average daily volume over the 100 days prior to this writing was shares, is 67% Sell on the basis of long term indicators.

The share price is currently staying around the first support level of $33.33. Below this, the next support is placed in the zone of $32.9. Till the time, the AMAT stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 52.4 on daily chart, which may remain a cause for concern. If the price breaks below $32.9 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $34.25 mark may result into a pull-back move towards $34.75 level.

Applied Materials, Inc. (AMAT) is projected to climb by 42.49 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $63price as 12-month high target. This represents a whopping 86.67 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $46, which represents a return potential of 36.3 percent when compared to the closing price of the stock of $33.75 on Tuesday, January 15. The lowest price target for the stock is $33 — slightly more than -2.22 percent from AMAT’s current share price.

Here’s a rundown of insider trading activity for sense of Applied Materials, Inc. (NASDAQ:AMAT). The earliest insider trade took place on 03/12/2018. Iannotti Thomas J parted with a total of 15 thousand shares of company at average share price of $61.47. The total for the sales was set at $922.05 thousand. After this transaction, the Director account balance stood at 61.97 thousand shares. The stock lost -45.1 percent since that insider sale. On 01/03/2018, Forrest Stephen R, Director, sold 4 thousand shares at a price per share of $53.67. This removed 214.68 thousand shares from the insider’s fortune and the stock saw a -37.12 percent retreat in value since the news became public. This transaction left 71.18 thousand shares in the Director account. On 01/02/2018, Senior VP, CTO Nalamasu Omkaram performed a sale transaction worth $2.83 million. This sale at $53 each has eliminated 53.47 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded -36.32 percent decrease since the transaction was reported. The insider now is left with 344.72 thousand shares remaining in the account. Salehpour Ali, who performs the Sr. VP, GM Srv., Dspl. & Flex. job, sold 125.13 thousand shares for $6.44 million. The disposal occurred on 12/29/2017 was priced at $51.47 per share. The share price plunged -34.43 percent since the reporting date. Salehpour Ali now left with a stake of 485.38 thousand AMAT stock worth $16.38 million after the insider selling.

AMAT shares dropped -0.11 points or -0.32 percent on Tuesday to $33.75 with a light trade volume of 6.552 million shares. After opening the session at $34.09, the shares went as high as $34.325 and as low as $33.4, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $32.3 billion and now has 958.06 million shares outstanding. Applied Materials, Inc. (AMAT) stock has gained 0.12 percent of market value in 21 trading days.

Analysts at Needham, assumed coverage of Applied Materials, Inc. (NASDAQ:AMAT) with Buy recommendation, according to their opinion released on December 21. Imperial Capital analysts again handed out a Outperform rating to AMAT stock but they lifted target price for the shares in a flash note to investors on November 20. The price target has been raised from $62 to $47. Imperial Capital, analysts launched coverage of AMAT stock with a Outperform rating, according to their flash note to investors on November 20. Analysts at Cowen are sticking to their Outperform recommendation. However, on November 20, they lifted target price for these shares to $47 from $62. Analysts at Cowen, made their first call for the stock with a Outperform rating, according to a research note that dated back to November 20.

AMAT stock has a trailing 3-year beta of 1.6, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was $4.31 a share in the trailing twelve months. The stock’s value has surged 3.08 percent year to date (YTD) against a decline of -36.86 percent in 12 month’s time. The company’s shares still trade -45.91 percent away from its 1-year high of $62.40 and 17.23 percent up from 52-week low of $28.79. The average consensus rating on the company is 2.1, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.

Shares of Applied Materials, Inc. (AMAT) are trading at a P/E ratio of 8.35 times earnings reported for the past 12 months. The industry AMAT operates in has an average P/E of 12.18. Its P/E ratio went as low as 7.5X and as high as 24.1 over the 5-year span. Further, it is sporting a 1.87 on the Price-to-Sales ratio. Compare this with the industry average P/S of 2.2. 45.3 percent is the gross profit margin for Applied Materials, Inc. and operating margin sits at 27.8 percent. Along with this, the net profit margin is 19.2 percent.