Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

Applied Materials Gains on $7.5 Billion Share Buyback Plan

Published 03/24/2021, 10:45 AM
Updated 03/24/2021, 10:46 AM
© Reuters

By Dhirendra Tripathi

Investing.com – Applied Materials (NASDAQ:AMAT) shares rose nearly 6% Wednesday on the company’s plan to buy back $7.5 billion of stock, on top of the $1.3 billion remaining from its previous repurchase plan.

The buyback, announced Monday, represents 7% of the company’s $106.8 billion market capitalization.

Applied Materials also said its Kokusai Electric share purchase agreement with KKR HKE Investment may fall through on delays in getting regulatory approvals. It told investors that if it fails to get the green light from Chinese authorities by March 26, it will call off the deal and issue KKR a $154 million termination fee.

On Tuesday, Bank of America (NYSE:BAC) raised its price target on Applied Materials to $150, implying a gain of 21% from the current price. The analyst said the company could make EPS of $9 by 2025.

 

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.