Applied Materials (AMAT) CEO Gary Dickerson has bought millions of dollars worth of company stock as the share price collapsed.
The stock of Applied Materials, which makes the equipment and software used to manufacture semiconductors and microchips, has fallen 36% over the past 12 months. Dickerson has used the decline as an opportunity to make his first purchases of AMAT stock in nearly a decade.
Concerns about demand for microchips was hurting Applied Materials stock before U.S. President Donald Trump announced his trade tariffs. However, news of U.S. import tariffs really hurt AMAT stock. The company’s shares have steadily declined despite raising its dividend, boosting its stock buybacks, and receiving an analyst upgrade in recent months.
Buying Opportunity
Dickerson has treated the collapse in share price as a buying opportunity. On April 3, AMAT stock fell 8% amid a wider market rout. That day, Dickerson paid $6.9 million for 50,000 shares of Applied Materials at an average price of $137.30 each. He now owns 1,716,058 AMAT shares, according to a form filed with the U.S. Securities and Exchange Commission (SEC).
Dickerson has been the CEO of Applied Materials since September 2013. He last bought AMAT stock on the open market in September 2015 when he paid $430,200 for 30,000 shares of the company at an average price of $14.34 each.
Is AMAT Stock a Buy?
The stock of Applied Materials has a consensus Moderate Buy rating among 22 Wall Street analysts. That rating is based on 17 Buy, four Hold, and one Sell recommendations issued in the last three months. The average AMAT price target of $205.38 implies 53.23% upside from current levels.
