Applied Materials, Inc. (NASDAQ:AMAT) Receives Average Rating of “Moderate Buy” from Brokerages

Applied Materials, Inc. (NASDAQ:AMAT) has been given an average rating of “Moderate Buy” by the thirty-five brokerages that are covering the company, Marketbeat Ratings reports. Eight research analysts have rated the stock with a hold recommendation and twenty-seven have issued a buy recommendation on the company. The average twelve-month price objective among analysts that have covered the stock in the last year is $553.5625.

Several brokerages have commented on AMAT. Sanford C. Bernstein reaffirmed an “outperform” rating and issued a $525.00 price objective on shares of Applied Materials in a research report on Friday, May 15th. JPMorgan Chase & Co. upped their price objective on shares of Applied Materials from $400.00 to $515.00 and gave the company an “overweight” rating in a report on Friday, May 15th. Susquehanna upped their price objective on shares of Applied Materials from $575.00 to $900.00 and gave the company a “positive” rating in a report on Tuesday. TD Cowen upped their price objective on shares of Applied Materials from $450.00 to $525.00 and gave the company a “buy” rating in a report on Friday, May 15th. Finally, Wall Street Zen raised shares of Applied Materials from a “hold” rating to a “buy” rating in a report on Saturday, May 23rd.

Insider Transactions at Applied Materials

In other news, insider Prabu G. Raja sold 10,000 shares of the stock in a transaction dated Thursday, June 18th. The shares were sold at an average price of $633.53, for a total value of $6,335,300.00. Following the sale, the insider directly owned 346,642 shares of the company’s stock, valued at approximately $219,608,106.26. This represents a 2.80% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CEO Gary E. Dickerson sold 71,727 shares of the stock in a transaction dated Tuesday, June 16th. The stock was sold at an average price of $593.75, for a total transaction of $42,587,906.25. Following the completion of the sale, the chief executive officer directly owned 1,695,164 shares in the company, valued at approximately $1,006,503,625. The trade was a 4.06% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 199,767 shares of company stock valued at $114,104,709. Company insiders own 0.30% of the company’s stock.

Institutional Investors Weigh In On Applied Materials

A number of institutional investors and hedge funds have recently bought and sold shares of AMAT. Cornerstone Financial Management LLC bought a new position in Applied Materials during the fourth quarter valued at approximately $25,000. Wilkerson Advisory Group LLC bought a new position in Applied Materials during the fourth quarter valued at approximately $26,000. Financial Freedom LLC bought a new position in Applied Materials during the first quarter valued at approximately $28,000. Highline Wealth Partners LLC grew its position in Applied Materials by 48.7% during the fourth quarter. Highline Wealth Partners LLC now owns 116 shares of the manufacturing equipment provider’s stock valued at $30,000 after acquiring an additional 38 shares during the last quarter. Finally, Joseph Group Capital Management bought a new position in Applied Materials during the fourth quarter valued at approximately $31,000. 80.56% of the stock is owned by hedge funds and other institutional investors.

Applied Materials News Roundup

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

• Positive Sentiment: KeyBanc, Cantor Fitzgerald, and Bank of America all turned more bullish on AMAT, with multiple price-target hikes and fresh upside calls ahead of earnings, reinforcing the view that demand for chip-making equipment remains strong. Why Applied Materials Shares Are Surging Monday
• Positive Sentiment: The stock has been one of the biggest winners in the semiconductor space, with June marking its best monthly rally since 1975 as AI infrastructure spending lifted estimates and investor sentiment. Stock Of The Day: Is This The Top For Applied Materials?
• Positive Sentiment: Erste Group raised its FY2026 and FY2027 earnings estimates for Applied Materials, signaling confidence that earnings growth can continue beyond the current year. Applied Materials, Inc. (NASDAQ:AMAT)
• Neutral Sentiment: Several articles note the stock is technically very extended and “overbought,” which suggests momentum is strong but also raises the risk of a near-term pullback after the huge run-up. Stock Of The Day: Is This The Top For Applied Materials?
• Neutral Sentiment: Applied Materials was also added to the Russell Top 50 Index, which can boost visibility and passive fund ownership, though the impact is more about flows than fundamentals. Applied Materials (AMAT) Joins Russell Top 50 After Leaving Value Indexes

Applied Materials Stock Performance

Shares of AMAT stock opened at $723.00 on Wednesday. The firm has a market capitalization of $574.03 billion, a PE ratio of 67.89, a price-to-earnings-growth ratio of 1.93 and a beta of 1.67. The firm has a fifty day simple moving average of $486.16 and a two-hundred day simple moving average of $384.29. The company has a current ratio of 2.51, a quick ratio of 1.80 and a debt-to-equity ratio of 0.22. Applied Materials has a 12 month low of $154.46 and a 12 month high of $739.67.

Applied Materials (NASDAQ:AMAT) last posted its earnings results on Thursday, May 14th. The manufacturing equipment provider reported $2.86 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.68 by $0.18. Applied Materials had a net margin of 29.31% and a return on equity of 36.97%. The firm had revenue of $7.91 billion during the quarter, compared to analyst estimates of $7.68 billion. During the same quarter in the prior year, the business posted $2.39 EPS. The business’s revenue was up 11.4% compared to the same quarter last year. Applied Materials has set its Q3 2026 guidance at 3.160-3.560 EPS. Analysts forecast that Applied Materials will post 12.11 EPS for the current fiscal year.

Applied Materials Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders 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 annualized dividend and a yield of 0.3%. Applied Materials’s dividend payout ratio is 19.91%.

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.