Shares of Applied Materials (NASDAQ:AMAT) slipped in after-hours trading after the chip company reported earnings for its second quarter of Fiscal Year 2024. Earnings per share came in at $2.09, which beat analysts’ consensus estimate of $1.99 per share. Sales increased by 0.3% year-over-year, with revenue hitting $6.65 billion. This beat analysts’ expectations of $6.487 billion.
Looking forward to Q3 2024, management now expects revenue to reach $6.65 billion (plus or minus $400 million) and adjusted earnings per share to be in the range of $1.83 to $2.19. For reference, analysts were expecting $6.58 billion in revenue, along with an adjusted EPS of $1.97.
Hedge Funds Have Been Selling Shares of AMAT
When it comes to “smart money,” money managers don’t seem to be all that confident in AMAT stock. Indeed, after a 73% rally in its share price over the past year, hedge funds have begun taking profits during the past three months and decreased their holdings in the stock by 11.3 million shares. As a result, they have a very negative confidence signal, as indicated by the graphic below.
What Is the Target Price for AMAT?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on AMAT stock based on 11 Buys, four Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average AMAT stock price target of $231.54 per share implies 7.37% upside potential. However, it’s worth noting that estimates will likely change following today’s earnings report.
