Applied Materials Intrinsic Value – Applied Materials CTO Cashes Out $3.77M in Stock Profits
December 28, 2023
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Applied Materials ($NASDAQ:AMAT), Inc. is an American corporation that supplies equipment, services and software for the fabrication of semiconductor chips, displays, and solar photovoltaic products. The company’s stock is currently traded on the NASDAQ Stock Exchange. Recently, the Chief Technology Officer (CTO) of Applied Materials, Ramesh Narayanan, has cashed out $3.77 million worth of stock profits. This figure was made public in a regulatory filing with the Securities and Exchange Commission.
The sale comes at a time when the stock has been strongly performing. This cashing out of stock profits is a sign that Narayanan is confident in the current trajectory of Applied Materials’ stock.
Stock Price
On Wednesday, Applied Materials CTO, Dan Durn, cashed out $3.77M in stock profits. The sale comes after Applied Materials’ stock opened at $164.5 and closed at $164.2. Durn took advantage of the company’s current high stock price to cash out the profits and receive a sizeable gain from his investment.
Durn’s confidence in the stock price likely comes from Applied Materials’ success as a leading supplier of equipment used to manufacture semiconductors and other electronic components. With strong signs of continued success, it is likely that Durn will continue to make profitable investments in Applied Materials stock in the future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Applied Materials. More…
| Total Revenues | Net Income | Net Margin |
| 26.52k | 6.86k | 25.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Applied Materials. More…
| Operations | Investing | Financing |
| 8.7k | -1.53k | -3.03k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Applied Materials. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 30.73k | 14.38k | 18.04 |
Key Ratios Snapshot
Some of the financial key ratios for Applied Materials are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 15.5% | 20.6% | 30.0% |
| FCF Margin | ROE | ROA |
| 28.6% | 32.9% | 16.2% |
Analysis – Applied Materials Intrinsic Value
At GoodWhale, we have analyzed the financials of APPLIED MATERIALS using our proprietary Valuation Line. After careful consideration, we have determined that the fair value of APPLIED MATERIALS share is around $142.7. At the moment, the stock is trading at $164.2, which is a fair price but is overvalued by 15.1%. More…
Peers
Applied Materials, Inc. and its competitors, Lam Research Corporation, KLA Corporation, and ASML Holding NV, compete in the semiconductor equipment industry. This industry is capital intensive, with high barriers to entry. The four companies have similar business models, but Applied Materials has a slight edge in terms of market share.
– Lam Research Corp ($NASDAQ:LRCX)
Lam Research Corporation is a company that manufactures semiconductor processing equipment. It is headquartered in Fremont, California, and has been in business since 1980. The company has a market capitalization of $51.81 billion as of 2022 and a return on equity of 54.63%. Lam Research Corporation is a leading supplier of wafer processing equipment to the semiconductor industry. The company’s products are used in the manufacturing of integrated circuits (ICs), which are the tiny electronic components that are found in everything from computers to cell phones. Lam Research Corporation’s products are used in all stages of IC production, from the initial deposition of materials on the wafer to the final etching of the completed circuits.
– KLA Corp ($NASDAQ:KLAC)
KLA Corp is a leader in process equipment and services for the semiconductor and nanoelectronics industries. The company has a market cap of $43.23 billion and a return on equity of 126.76%. KLA Corp provides products and services that enable the manufacturing of advanced semiconductor chips. The company’s products are used by customers in the fab process of making chips, including etching, metrology, and inspection. KLA Corp’s services enable customers to optimize their productivity and yield. The company has a strong history of innovation and is a trusted partner to the world’s leading chipmakers.
– ASML Holding NV ($NASDAQ:ASML)
ASML Holding NV is a technology company that manufactures semiconductor processing equipment, which is used in the production of integrated circuits (ICs). ASML’s products are used by customers in the computer, communications, and consumer electronics industries. The company has a market cap of 187.16B as of 2022 and a return on equity of 39.55%. ASML is headquartered in the Netherlands and has offices in Europe, the United States, Asia, and Japan.
Summary
Applied Materials, Inc. recently experienced a large selloff of company stock by its Chief Technology Officer (CTO). The CTO sold over $3.77 million worth of the company’s shares on the open market. Analysts have suggested that the selloff could be a sign of a shift in the company’s outlook for the future.
Investors may want to perform an analysis of Applied Materials’ financial statements and review the company’s current market position in order to gain a better understanding of the implications of this recent stock sale. Going forward, investors may want to keep an eye on the company’s stock movements and news releases for further updates on its financial performance.
