Applied Materials executive sells more than $12.4 million worth of stock

Applied Materials Inc. (NASDAQ: ) reported a major transaction by its executives. Raja Prabu G., president of Applied Materials' Semiconductor Products Group, recently sold 50,000 shares of the company's common stock. The transaction took place on June 18, 2024, for a total amount of more than $12.4 million, with a weighted average stock price of $249.17.

The sale was completed in multiple transactions, with prices ranging from $248.40 to $249.35. This price range reflects the average cost to senior executives of disposing of stock. After the sale, Raja Prabu G. still holds a large number of shares, totaling 458,417 shares, according to the latest filing.

Investors often monitor such insider transactions to gain insight into a company's performance and executives' perceptions of a stock's value. Applied Materials is a leader in the semiconductor and related device industries, and transactions like this generate significant interest from shareholders and potential investors.

The executive's remaining holdings include 145,928 performance stock units and restricted stock units, which will convert into common stock upon vesting. The vesting schedule is spread over various dates from December 2024 to 2026 and is subject to the achievement of specific performance goals and continued employment.

This latest deal has been officially reported to the SEC, with full details available upon request for those interested in a specific breakdown of the sales price. The reported transactions highlight the active market influence of Applied Materials executives and provide a snapshot of insider trading within the company.

In other recent news, Applied Materials, a well-known player in the semiconductor industry, has made several major announcements. The company increased its quarterly cash dividend from $0.32 to $0.40 per share, a 25% increase from its previous dividend. This continues the company's trend of annual dividend growth over the past seven years. In addition, in the second quarter of fiscal 2024, Applied Materials returned $1.09 billion to shareholders through dividends and stock repurchases.

In addition to these developments, Applied Materials reported strong revenue and earnings per share for the April quarter, exceeding the high end of guidance. The company's advanced packaging business is expected to grow 70% annually to $1.7 billion, with Gate-All-Around (GAA) technology expected to generate more than $2.5 billion in revenue by 2024 and double by 2025 to $1.7 billion. $5 billion.

Analysts from Citigroup, KeyBanc Capital Markets, B.Riley and Stifel, among others, updated their stance on Applied Materials. Citi raised its stock price target to $250, citing strong demand prospects, while B.Riley raised its price target to $255, emphasizing the company's future growth potential. KeyBanc maintained its Sector Weight rating on the stock, citing the recovery.

These are recent developments at Applied Materials and reflect the company's financial health and growth trajectory.

Investment Professional Insights

Given the recent insider selling in Applied Materials Corporation (NASDAQ: AMAT ), investors may be interested in the company's financial metrics. According to real-time data from InvestingPro, Applied Materials has a market capitalization of US$195.39 billion and a current price-to-earnings ratio of 26.91. The price-to-earnings ratio for the past 12 months as of the second quarter of 2024 has been slightly adjusted to 27.76. ratio to profit growth.

When evaluating the company's performance, it's worth noting that Applied Materials has raised its dividend for six consecutive years, reflecting its commitment to returning value to shareholders. Additionally, 18 analysts raised their earnings estimates for the coming period, which could indicate confidence in the company's future performance. These Investment Professional Tips Despite the internal sales, the outlook remains positive.

The company's financial strength is further highlighted by strong gross margin of 47.18% and operating margin of 28.87% in the trailing twelve months ended Q2 2024. its efficiency in generating profits from its assets.

For individuals seeking more in-depth analysis and additional information Investment Professional Tips, and 19 tips that can help you gain a deeper understanding of Applied Materials' financial health and stock performance. Readers can obtain these tips by visiting To enhance your investing strategy, use the coupon code PRONEWS24 Get an additional 10% discount on annual or two-year Pro and Pro+ subscriptions at InvestingPro.

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