Applied Materials’ (AMAT) Buy Rating Reaffirmed at B. Riley Securities

B. Riley Securities reiterated their buy rating on shares of Applied Materials (NASDAQ:AMAT) in a research report sent to investors on Friday,Benzinga reports. The brokerage currently has a $450.00 target price on the manufacturing equipment provider’s stock, up from their previous target price of $400.00.

AMAT has been the topic of a number of other research reports. Sanford C. Bernstein reissued a “market perform” rating and set a $325.00 price objective on shares of Applied Materials in a report on Monday, January 12th. JPMorgan Chase & Co. increased their target price on shares of Applied Materials from $220.00 to $260.00 and gave the company an “overweight” rating in a research report on Friday, November 14th. UBS Group reissued a “buy” rating and issued a $405.00 price target on shares of Applied Materials in a research report on Monday, February 2nd. Morgan Stanley upped their price objective on shares of Applied Materials from $273.00 to $364.00 and gave the company an “overweight” rating in a research note on Monday, February 2nd. Finally, DZ Bank upgraded Applied Materials from a “strong sell” rating to a “hold” rating in a research report on Friday, November 14th. Twenty-eight equities research analysts have rated the stock with a Buy rating and six have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $361.03.

Applied Materials Stock Up 8.1%

Shares of NASDAQ AMAT opened at $354.91 on Friday. The business has a 50-day moving average of $295.20 and a two-hundred day moving average of $236.38. The company has a market capitalization of $281.70 billion, a price-to-earnings ratio of 36.33, a price-to-earnings-growth ratio of 2.92 and a beta of 1.70. Applied Materials has a 1 year low of $123.74 and a 1 year high of $376.32. The company has a debt-to-equity ratio of 0.32, a current ratio of 2.61 and a quick ratio of 1.87.

Applied Materials (NASDAQ:AMAT) last issued its earnings results on Thursday, February 12th. The manufacturing equipment provider reported $2.38 earnings per share for the quarter, topping the consensus estimate of $2.19 by $0.19. The business had revenue of $7.01 billion for the quarter, compared to analyst estimates of $6.88 billion. Applied Materials had a return on equity of 38.52% and a net margin of 27.78%.The business’s quarterly revenue was down 2.1% on a year-over-year basis. During the same quarter last year, the company earned $2.38 EPS. Applied Materials has set its Q2 2026 guidance at 2.440-2.840 EPS. On average, analysts forecast that Applied Materials will post 9.38 earnings per share for the current fiscal year.

Applied Materials Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, March 12th. Stockholders of record on Thursday, February 19th will be issued a $0.46 dividend. This represents a $1.84 dividend on an annualized basis and a dividend yield of 0.5%. The ex-dividend date of this dividend is Thursday, February 19th. Applied Materials’s dividend payout ratio is presently 21.20%.

Insider Activity

In other Applied Materials news, SVP Teri A. Little sold 4,000 shares of the company’s stock in a transaction that occurred on Tuesday, November 25th. The stock was sold at an average price of $238.24, for a total transaction of $952,960.00. Following the completion of the sale, the senior vice president directly owned 84,351 shares of the company’s stock, valued at $20,095,782.24. This represents a 4.53% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CAO Adam Sanders sold 609 shares of Applied Materials stock in a transaction that occurred on Monday, December 1st. The shares were sold at an average price of $255.53, for a total value of $155,617.77. Following the completion of the transaction, the chief accounting officer owned 4,413 shares in the company, valued at $1,127,653.89. This trade represents a 12.13% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 8,609 shares of company stock valued at $2,044,898 in the last quarter. Insiders own 0.30% of the company’s stock.

Institutional Investors Weigh In On Applied Materials

Large investors have recently modified their holdings of the stock. Marquette Asset Management LLC increased its stake in Applied Materials by 150.0% in the 3rd quarter. Marquette Asset Management LLC now owns 125 shares of the manufacturing equipment provider’s stock valued at $26,000 after buying an additional 75 shares during the period. Redmont Wealth Advisors LLC purchased a new stake in shares of Applied Materials in the third quarter valued at about $26,000. Wilkerson Advisory Group LLC purchased a new stake in shares of Applied Materials in the fourth quarter valued at about $26,000. Highline Wealth Partners LLC increased its stake in shares of Applied Materials by 48.7% during the fourth quarter. Highline Wealth Partners LLC now owns 116 shares of the manufacturing equipment provider’s stock worth $30,000 after acquiring an additional 38 shares during the period. Finally, Financial Gravity Companies Inc. purchased a new position in Applied Materials during the second quarter worth about $31,000. Hedge funds and other institutional investors own 80.56% of the company’s stock.

Applied Materials News Roundup

Here are the key news stories impacting Applied Materials this week:

• Positive Sentiment: Q1 results beat consensus — EPS of $2.38 topped estimates and revenue of $7.01B beat expectations, evidence that services and AI-related demand are offsetting cyclical headwinds. This beat is the primary catalyst for the rally. Applied Materials Q1 Earnings Beat Estimates, Revenues Fall Y/Y
• Positive Sentiment: Strong guidance and AI-driven order cadence — management set Q2 EPS and revenue guidance above Street consensus and highlighted surging orders tied to AI processors and tightening memory demand, supporting a view of sustained equipment spending. Applied Materials jumps as AI demand drives chipmaking tool orders
• Positive Sentiment: Analyst upgrades and price-target increases — multiple firms raised ratings/targets (examples cited include Needham, Mizuho, Citigroup, B. Riley), which amplifies buying momentum and reduces near-term downside from sell-side skepticism.
• Neutral Sentiment: Regulatory settlement resolved — Applied reached a $252.5M civil settlement with the U.S. Department of Commerce over prior export issues; DOJ and SEC closed related probes without action. The payment is a one-time cost but it removes regulatory overhang going forward. Applied Materials Reaches Resolution with the U.S. Department of Commerce
• Negative Sentiment: Valuation concerns and bear case commentary — some analysts and op-eds argue the stock’s run has left limited upside and warn of pricey multiples; this creates the risk of profit-taking if future execution or guidance lags. Applied Materials: Little Opportunity Left After A Monstrous Run

Applied Materials Company Profile

Applied Materials, Inc is a U.S.-based supplier of equipment, services and software used to manufacture semiconductor chips, flat panel displays and other advanced materials. Headquartered in Santa Clara, California, the company designs and sells capital equipment and related technologies that enable production of integrated circuits, display panels and materials used across the electronics supply chain.

Applied Materials’ offerings include process equipment and factory software that support critical steps in device fabrication, such as deposition, etch, implantation, inspection and metrology, as well as systems for packaging and advanced heterogeneous integration.