Applied Materials Inc. (NASDAQ:AMAT) has reported a significant transaction by one of its top executives. Raja Prabu G., the President of the Semiconductor Products Group at Applied Materials, recently sold 50,000 shares of the company's common stock. The transaction, which took place on June 18, 2024, amounted to over $12.4 million, with the shares sold at a weighted average price of $249.17.
The sale was executed in multiple transactions with prices ranging from $248.40 to $249.35. This price range reflects the average cost at which the shares were disposed of by the executive. Following this sale, Raja Prabu G. still holds a substantial number of shares, totaling 458,417, as per the latest filings.
Investors often monitor insider transactions such as these for insights into the company's performance and the executives' perspectives on the stock's value. Applied Materials is a leading company in the semiconductor and related devices industry, and such transactions are of keen interest to shareholders and potential investors.
The executive's remaining shares include 145,928 performance share units and restricted stock units, which are set to convert into common stock upon vesting. The vesting schedule is spread across various dates from December 2024 through 2026, subject to the achievement of specified performance goals and continued employment.
This latest transaction was duly reported to the Securities and Exchange Commission, with full details available upon request for those interested in the specific breakdown of the sales prices. The reported trade underscores the active market presence of Applied Materials' executives and provides a snapshot of insider transactions within the company.
In other recent news, Applied Materials, a prominent player in the semiconductor industry, has made several significant announcements. The company has increased its quarterly cash dividend from $0.32 to $0.40 per share, marking a 25% rise from the previous dividend. This continues the company's trend of annual dividend growth over the past seven years. Furthermore, in the second quarter of fiscal 2024, Applied Materials returned $1.09 billion to its shareholders through dividends and share repurchases.
In addition to these developments, Applied Materials reported robust revenues and earnings per share for the April quarter, surpassing the upper end of guidance. The company's advanced packaging segment is expected to surge 70% year-over-year to $1.7 billion, with Gate-All-Around (GAA) technology projected to generate over $2.5 billion in revenues in 2024, doubling to $5 billion by 2025.
Analysts from several firms, including Citi, KeyBanc Capital Markets, B.Riley, and Stifel, have updated their stances on Applied Materials. Citi raised its price target for the company's shares to $250, citing a strong demand outlook, while B.Riley increased the company's stock price target to $255, highlighting the company's future growth potential. KeyBanc maintained its Sector Weight rating on the company's stock, citing recovery.
These are among the recent developments for Applied Materials, reflecting the company's financial health and growth trajectory.
InvestingPro Insights
In light of the recent insider selling at Applied Materials Inc. (NASDAQ:AMAT), investors may be interested in how the company's financial metrics stack up. According to real-time data from InvestingPro, Applied Materials has a market capitalization of $195.39 billion and is trading at a P/E ratio of 26.91, which is slightly adjusted to 27.76 for the last twelve months as of Q2 2024. The company's PEG ratio for the same period stands at 1.81, indicating the price of its shares relative to its earnings growth.
While evaluating the company's performance, it's noteworthy to consider that Applied Materials has raised its dividend for 6 consecutive years, showcasing a commitment to returning value to shareholders. Additionally, 18 analysts have revised their earnings estimates upwards for the upcoming period, which may signal confidence in the company's future performance. These InvestingPro Tips suggest a positive outlook, despite the insider sale.
The company's financial strength is further highlighted by a robust gross profit margin of 47.18% and an operating income margin of 28.87% for the last twelve months as of Q2 2024. Applied Materials also boasts a high return on assets of 23.93%, underscoring its efficiency in generating profits from its assets.
For individuals seeking more in-depth analysis and additional InvestingPro Tips, there are 19 more tips available that can provide a richer understanding of Applied Materials' financial health and stock performance. Readers can access these tips by visiting https://www.investing.com/pro/AMAT. To enhance your investing strategy, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
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