The stock of Applied Materials, Inc. (NASDAQ:AMAT) is now priced at $65.24 and the shares are 1.67 points up or 2.63% higher compared to its previous closing price of $63.57. The stock had 7.387 million contracts set over the past session. AMAT shares’ daily volume is compared to its average trading volume at 7.319 million shares. However, it has a float of 913 million and although its performance was 0.35% over the week, it’s one to watch. Analysts have given the AMAT stock a yearly average price target of $70.08 per share. It means the stock’s upside potential is 7.42% with the AMAT share price recently placing at $63.62 to $65.28. However, some brokerage firms have priced the stock below the average, including one that has called $55.
The shorts are running away from the Applied Materials, Inc. stock, with the latest data on short interest released on July 15, 2020, showing that short interest numbers in the AMAT shares have declined. Short interest in the stock represents just 1.92% of its float, but the volume has dropped by -817634. The volume of shorted shares dropped to 17.523 million from 18.341 million shares over the last two weeks. The average intraday trading volume has been 5.223 million shares, which means that days to cover moved to roughly 3.354836.
In the last trading session, Applied Materials, Inc. (NASDAQ:AMAT) raised by $0.23 over the week and gained $3.73 on its 20-day. The stock’s high in the recent session is lower when compared to its 52-week high of $69.44. The stock recorded its established 52-week high on 02/13/20.
Since 03/18/20, the stock has traded to a low of $36.64 at 78.06%, an encouraging piece of data likely to interest most investors out to exploit the stock’s recent surge. The stock has a beta allocation of 1.39. Being above 1 means that the stock’s volatility is higher than the market and traders are keenly watching it.
Looking at current readings, Applied Materials, Inc.’s two-week RSI is 62.08. This suggests that the stock is neutral at the moment and that AMAT shares’ price movement remains stable. The stochastic readings are equally revealing at 75.71% meaning the AMAT share price is currently in oversold territory.
The technical chart shows that the AMAT stock will likely settle at between $65.81 and $66.37 per share. However, if the stock dips below $64.15, then its market would become much weaker. Any downside could see the stock price sliding to levels as low as $63.05.
Currently, the stock is trading in the red of MACD, with a reading of -0.21. Investors always pay attention to any move above or below the zero-line, mainly because the indicator points to the position of the stock’s short-term average relative to its long-term measure. A MACD -a reading above the zero line means that the short-term is above the long-term average. This scenario implies that there is an upward momentum. The opposite is true when the MACD falls below the zero-line.
Analysts at Morgan Stanley though raised target price of AMAT stock from $52.50 to $60 but maintained Equal-Weight recommendation in their June 16 review. Barclays analysts see the stock as a Equal Weight with a target price of $60 in a flash note released to investors on May 26 initiating covering the stock. B. Riley FBR seeing the improvements upgraded the stock from Neutral to Buy on May 15, placing it at $56 to $72.
The average rating for the AMAT equity is 2.07 and is currently gathering a bullish momentum. Of 28 analysts tracking Applied Materials, Inc. polled by Reuters, 7 rated AMAT as a hold. The remaining 21 analysts were split evenly. However, the split wasn’t equal as a majority (21) rated it as a buy or strong buy. 0 analyst advised investors against buying the stock or to sell if they own any of the stock.
Elsewhere, the AMAT stock price is 15.13X ahead of its 12-month Consensus earnings per share estimates. The stocks P/S ratio currently stands at 20.8 below the group’s average of 33.3. Applied Materials, Inc. has its P/E ratio at 6.6, which means that the stock is currently trading at a discount relative to the 8.4 industry average.
Zacks Consensus Estimate forecasts that the current-quarter revenues for Applied Materials, Inc. (NASDAQ:AMAT) will increase by about 4.45%, which will see them reach $4130 million. The company’s full-year revenues are, however, expected to increase by about 13.89%, up from $14610 million to $16640 million. AMAT’s expected adjusted earnings should surge almost 28.38% to end up at $0.95 per share, while for the fiscal year, analysts project the company’s earnings to grow by about 25.33% to record $3.81/share.