Applied Materials (NASDAQ:AMAT) Upgraded at Wall Street Zen

Wall Street Zen upgraded shares of Applied Materials (NASDAQ:AMAT) from a hold rating to a buy rating in a report released on Saturday morning.

AMAT has been the topic of a number of other research reports. Craig Hallum increased their price objective on shares of Applied Materials from $530.00 to $585.00 and gave the stock a “buy” rating in a research note on Friday. HSBC reaffirmed a “buy” rating and issued a $683.00 price target on shares of Applied Materials in a report on Monday, July 27th. Sanford C. Bernstein increased their price target on Applied Materials from $675.00 to $700.00 and gave the stock an “outperform” rating in a research report on Friday. Deutsche Bank Aktiengesellschaft reiterated a “buy” rating and set a $605.00 price objective on shares of Applied Materials in a research note on Friday. Finally, Erste Group Bank cut Applied Materials from a “buy” rating to a “hold” rating in a report on Wednesday, August 5th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-seven have issued a Buy rating and six have issued a Hold rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $640.17.

Applied Materials Price Performance

Shares of NASDAQ AMAT opened at $535.31 on Friday. The business’s 50 day moving average price is $565.01 and its 200 day moving average price is $447.20. The firm has a market cap of $425.01 billion, a P/E ratio of 46.15, a P/E/G ratio of 1.25 and a beta of 1.61. Applied Materials has a 52 week low of $154.46 and a 52 week high of $739.67. The company has a quick ratio of 1.79, a current ratio of 2.42 and a debt-to-equity ratio of 0.20.

Applied Materials (NASDAQ:AMAT) last posted its quarterly earnings results on Thursday, August 13th. The manufacturing equipment provider reported $3.50 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $3.40 by $0.10. Applied Materials had a net margin of 30.05% and a return on equity of 38.02%. The company had revenue of $9.12 billion during the quarter, compared to analyst estimates of $8.99 billion. During the same period last year, the firm posted $2.48 EPS. Applied Materials’s revenue for the quarter was up 24.8% compared to the same quarter last year. Applied Materials has set its Q4 2026 guidance at 3.820-4.220 EPS. On average, sell-side analysts expect that Applied Materials will post 12.48 earnings per share for the current year.

Applied Materials Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Thursday, August 20th will be issued a dividend of $0.53 per share. The ex-dividend date of this dividend is Thursday, August 20th. This represents a $2.12 dividend on an annualized basis and a yield of 0.4%. Applied Materials’s dividend payout ratio is 18.28%.

Insider Activity at Applied Materials

In other Applied Materials news, SVP Timothy M. Deane sold 8,621 shares of Applied Materials stock in a transaction on Monday, June 15th. The shares were sold at an average price of $590.76, for a total value of $5,092,941.96. Following the completion of the transaction, the senior vice president owned 134,631 shares of the company’s stock, valued at approximately $79,534,609.56. The trade was a 6.02% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, insider Prabu G. Raja sold 10,000 shares of the company’s stock in a transaction dated Thursday, June 18th. The stock was sold at an average price of $633.53, for a total transaction of $6,335,300.00. Following the completion of the transaction, the insider owned 346,642 shares of the company’s stock, valued at approximately $219,608,106.26. This trade represents a 2.80% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 278,088 shares of company stock valued at $169,654,805 in the last quarter. 0.30% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Applied Materials

A number of large investors have recently bought and sold shares of the business. Evolve Private Wealth LLC lifted its stake in shares of Applied Materials by 59.0% in the first quarter. Evolve Private Wealth LLC now owns 2,875 shares of the manufacturing equipment provider’s stock worth $983,000 after buying an additional 1,067 shares in the last quarter. WealthPlan Investment Management LLC purchased a new stake in Applied Materials during the 4th quarter valued at about $1,082,000. Ameritas Advisory Services LLC raised its holdings in Applied Materials by 183.7% in the 4th quarter. Ameritas Advisory Services LLC now owns 3,073 shares of the manufacturing equipment provider’s stock valued at $790,000 after acquiring an additional 1,990 shares during the last quarter. Handelsbanken Fonder AB raised its holdings in Applied Materials by 29.6% in the 2nd quarter. Handelsbanken Fonder AB now owns 462,685 shares of the manufacturing equipment provider’s stock valued at $334,521,000 after acquiring an additional 105,776 shares during the last quarter. Finally, CloudAlpha Capital Management Limited Hong Kong lifted its stake in Applied Materials by 204.8% in the 4th quarter. CloudAlpha Capital Management Limited Hong Kong now owns 140,773 shares of the manufacturing equipment provider’s stock worth $36,177,000 after purchasing an additional 94,587 shares in the last quarter. Institutional investors and hedge funds 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: Applied Materials reported fiscal third-quarter revenue of approximately $9.12 billion, up 24.8% year over year, while adjusted earnings of $3.50 per share exceeded consensus estimates. Management’s fiscal fourth-quarter revenue outlook of roughly $10.25 billion was also well above analyst expectations, signaling continued momentum. AMAT Q2 Deep Dive: AI Demand and Advanced Packaging Drive Guidance Upside, Market Reacts Cautiously
• Positive Sentiment: Several analysts remained constructive: B. Riley and Needham reiterated buy ratings, while price targets were raised to $600 and $660. These revisions reflect confidence in Applied Materials’ earnings growth and exposure to AI-related chip manufacturing. Applied Materials’ Buy Rating Reiterated at B. Riley Financial Applied Materials Price Target Raised to $600 Applied Materials Price Target Raised to $660
• Positive Sentiment: Investment commentary highlights AMAT as a potential beneficiary of the AI-driven memory surge. Higher memory spending and advanced semiconductor production could support equipment demand beyond the current earnings cycle. Why Applied Materials Could Be a Major Winner of the AI Memory Surge
• Neutral Sentiment: Market coverage characterizes the earnings report as fundamentally strong but notes that investors reacted cautiously, implying that much of the growth may already be reflected in the share price. Applied Materials: When Beating Wall Street Numbers Isn’t Enough
• Negative Sentiment: Despite record results and guidance, AMAT remains more than 25% below its 52-week high and trades at a premium earnings multiple. That valuation raises the risk of profit-taking or disappointment if AI and memory spending slows. Applied Materials Trades More Than 25% Below Its High With Revenue at a Record

About Applied Materials

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.