Why Applied Materials Shares Are Rising

Applied Materials, Inc. AMAT shares are trading higher by 2.9% to $210.97 during Thursday’s session. Shares of semiconductor stocks are trading higher in sympathy with Micron, which reported better-than-expected second-quarter financial results and issued strong third-quarter guidance.

Micron beat revenue expectations with $5.82 billion and reported a surprise profit of 42 cents per share, surpassing analyst estimates of a 25 cents per share loss. Operating cash flow rose to $1.22 billion from $343 million year-over-year but decreased from the previous quarter’s $1.4 billion.

Meanwhile, adjusted free cash flow was negative at $29 million for the quarter…Read More

See Also: Micron’s Q2 Earnings Growth Fueled By AI — High Bandwidth Memory Investments Key

Is AMAT A Good Stock To Buy?

An investor can make a few decisions when deciding whether a stock is a good buy. In addition to valuation metrics and price action which you can find on Benzinga's quote pages – like Applied Mat‘s page for example – there are factors like whether or not a company pays a dividend or buys a large portion of its stock each quarter.

These are known as capital allocation programs. Applied Materials does pay a dividend, which yields 0.86% per year as of the closing price on Mar. 21, 2024. Feel free to search Benzinga's dividend calendar for the next company that is due to pay a dividend and determine what kind of yield you can earn for holding a share of the company.

For example, if you're looking to earn an annualized return of 11.0%, you'll need to buy a share of PennyMac Mortgage by the Apr. 11, 2024. Once done, you can expect to receive a nominal payout of $0.4 on Apr. 26, 2024.

Buyback programs are obviously different and highly variable. A company can approve a buyback program and purchase shares as it sees fit over the course of time in which the buyback was authorized. Looking through the latest news on Applied Mat will often yield whether or not the company has approved a buyback program recently. Buyback programs usually serve as a support for share prices, serving as a backstop for demand.

According to data from Benzinga Pro, AMAT has a 52-week high of $214.26 and a 52-week low of $109.00.