Applied Materials (NASDAQ:AMAT) Rating Increased to Strong-Buy at Zacks Research

Zacks Research upgraded shares of Applied Materials (NASDAQ:AMAT) from a hold rating to a strong-buy rating in a research report released on Wednesday morning,Zacks.com reports.

AMAT has been the topic of a number of other research reports. Wells Fargo & Company raised their target price on Applied Materials from $715.00 to $740.00 and gave the company an “overweight” rating in a report on Friday, June 26th. TD Cowen upped their price target on Applied Materials from $450.00 to $525.00 and gave the stock a “buy” rating in a report on Friday, May 15th. Citigroup increased their price target on Applied Materials from $550.00 to $710.00 and gave the company a “buy” rating in a research report on Wednesday, June 17th. Needham & Company LLC raised their price objective on Applied Materials from $440.00 to $530.00 and gave the company a “buy” rating in a research note on Friday, May 15th. Finally, The Goldman Sachs Group lifted their price objective on shares of Applied Materials from $390.00 to $520.00 and gave the stock a “buy” rating in a report on Friday, May 15th. One research analyst has rated the stock with a Strong Buy rating, twenty-seven have assigned a Buy rating and seven have issued a Hold rating to the company’s stock. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $553.56.

Applied Materials Trading Down 7.4%

NASDAQ:AMAT opened at $603.04 on Wednesday. The company has a debt-to-equity ratio of 0.22, a current ratio of 2.51 and a quick ratio of 1.80. Applied Materials has a one year low of $154.46 and a one year high of $739.67. The company has a market cap of $478.79 billion, a PE ratio of 56.62, a PEG ratio of 1.81 and a beta of 1.57. The firm has a 50-day moving average of $495.52 and a 200-day moving average of $389.39.

Applied Materials (NASDAQ:AMAT) last announced its quarterly earnings results on Thursday, May 14th. The manufacturing equipment provider reported $2.86 earnings per share for the quarter, beating the consensus estimate of $2.68 by $0.18. The business had revenue of $7.91 billion for the quarter, compared to analysts’ expectations of $7.68 billion. Applied Materials had a net margin of 29.31% and a return on equity of 36.97%. The firm’s revenue for the quarter was up 11.4% compared to the same quarter last year. During the same quarter last year, the firm earned $2.39 EPS. Applied Materials has set its Q3 2026 guidance at 3.160-3.560 EPS. As a group, equities research analysts expect that Applied Materials will post 12.11 EPS for the current fiscal year.

Applied Materials Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Thursday, August 20th will be given a dividend of $0.53 per share. This represents a $2.12 dividend on an annualized basis and a dividend yield of 0.4%. The ex-dividend date of this dividend is Thursday, August 20th. Applied Materials’s dividend payout ratio is currently 19.91%.

Insider Activity at Applied Materials

In related news, Director Thomas J. Iannotti sold 9,250 shares of the company’s stock in a transaction that occurred on Tuesday, June 16th. The stock was sold at an average price of $599.77, for a total value of $5,547,872.50. Following the transaction, the director owned 40,559 shares in the company, valued at approximately $24,326,071.43. This represents a 18.57% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, SVP Timothy M. Deane sold 8,621 shares of the 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 transaction, the senior vice president directly owned 134,631 shares of the company’s stock, valued at approximately $79,534,609.56. This trade represents a 6.02% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 278,088 shares of company stock worth $169,654,805 over the last 90 days. Corporate insiders own 0.30% of the company’s stock.

Institutional Trading of Applied Materials

Hedge funds have recently made changes to their positions in the company. Basecamp Wealth Advisors LLC grew its position in shares of Applied Materials by 0.7% during the 1st quarter. Basecamp Wealth Advisors LLC now owns 3,288 shares of the manufacturing equipment provider’s stock valued at $1,124,000 after buying an additional 22 shares during the last quarter. Private Wealth Management Group LLC lifted its holdings in shares of Applied Materials by 4.9% in the 1st quarter. Private Wealth Management Group LLC now owns 531 shares of the manufacturing equipment provider’s stock worth $181,000 after purchasing an additional 25 shares during the last quarter. One Day In July LLC boosted its position in Applied Materials by 2.4% during the 1st quarter. One Day In July LLC now owns 1,089 shares of the manufacturing equipment provider’s stock valued at $372,000 after purchasing an additional 26 shares during the period. Pinnacle Bancorp Inc. boosted its position in Applied Materials by 1.3% during the 1st quarter. Pinnacle Bancorp Inc. now owns 2,082 shares of the manufacturing equipment provider’s stock valued at $712,000 after purchasing an additional 27 shares during the period. Finally, Horst & Graben Wealth Management LLC grew its stake in Applied Materials by 2.1% during the 1st quarter. Horst & Graben Wealth Management LLC now owns 1,304 shares of the manufacturing equipment provider’s stock worth $446,000 after buying an additional 27 shares during the last quarter. 80.56% of the stock is currently owned by institutional investors.

Trending Headlines about Applied Materials

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

• Positive Sentiment: Applied Materials is being highlighted as a key beneficiary of AI infrastructure spending, with coverage emphasizing its role in DRAM and advanced packaging innovations that support next-generation semiconductor growth. Applied Materials, Inc. (AMAT) Discusses DRAM and Advanced Packaging Innovations for AI-Driven Semiconductor Growth Prepared Remarks Transcript
• Positive Sentiment: Investor sentiment was also supported by a Zacks list naming AMAT among the day’s top momentum stocks, reinforcing bullish technical momentum. Best Momentum Stocks to Buy for July 2nd
• Positive Sentiment: Market commentary continues to frame Applied Materials as a behind-the-scenes winner from the AI boom, which could help justify its elevated valuation if chip demand stays strong. Applied Materials Is Silently Powering the AI Boom. Here’s Why.
• Neutral Sentiment: Broader semiconductor stocks sold off as investors took profits after a strong first half, suggesting some of AMAT’s weakness may be sector-driven rather than company-specific. Why Applied Materials (AMAT) Shares Are Falling Today
• Neutral Sentiment: Another report noted AMAT fell more than the overall market in the latest session, but the move was tied to chip-sector weakness rather than a new earnings miss or guidance cut. Applied Materials (AMAT) Suffers a Larger Drop Than the General Market: Key Insights
• Negative Sentiment: CEO Gary Dickerson disclosed two sizable stock sales, including 20,000 shares sold at $735.22, which can weigh on investor sentiment even though he still retains a very large position. Applied Materials (NASDAQ:AMAT) CEO Sells $14,704,400.00 in Stock

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.