Applied Materials (NASDAQ:AMAT) Trading Up 2.4% After Analyst Upgrade

Applied Materials, Inc. (NASDAQ:AMAT)’s share price shot up 2.4% during mid-day trading on Friday after Stifel Nicolaus raised their price target on the stock from $530.00 to $650.00. Stifel Nicolaus currently has a buy rating on the stock. Applied Materials traded as high as $609.22 and last traded at $602.50. Approximately 6,224,273 shares changed hands during trading, a decline of 25% from the average session volume of 8,348,986 shares. The stock had previously closed at $588.66.

A number of other research firms have also commented on AMAT. Susquehanna increased their price objective on Applied Materials from $575.00 to $900.00 and gave the company a “positive” rating in a research note on Tuesday, June 30th. Deutsche Bank Aktiengesellschaft upped their target price on shares of Applied Materials from $450.00 to $550.00 and gave the company a “buy” rating in a report on Friday, May 15th. Royal Bank Of Canada lifted their price target on shares of Applied Materials from $500.00 to $520.00 and gave the stock an “outperform” rating in a report on Friday, May 15th. Jefferies Financial Group lifted their target price on shares of Applied Materials from $510.00 to $770.00 and gave the stock a “buy” rating in a research note on Friday, June 26th. Finally, Raymond James Financial set a $650.00 price target on Applied Materials in a research note on Wednesday, June 10th. One investment analyst has rated the stock with a Strong Buy rating, twenty-seven have assigned a Buy rating and six have given a Hold rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $589.48.

Insider Buying and Selling at Applied Materials

In related news, SVP Omkaram Nalamasu sold 24,263 shares of Applied Materials stock in a transaction on Tuesday, June 16th. The shares were sold at an average price of $593.43, for a total transaction of $14,398,392.09. Following the sale, the senior vice president owned 146,916 shares of the company’s stock, valued at $87,184,361.88. The trade was a 14.17% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CEO Gary E. Dickerson sold 71,727 shares of the company’s stock in a transaction dated Tuesday, June 16th. The shares were sold at an average price of $593.75, for a total transaction of $42,587,906.25. Following the completion of the transaction, the chief executive officer directly owned 1,695,164 shares of the company’s stock, valued at approximately $1,006,503,625. The trade was a 4.06% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders sold 278,088 shares of company stock valued at $169,654,805. 0.30% of the stock is owned by company insiders.

Applied Materials News Summary

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

• Positive Sentiment: Meta Platforms’ reported plan to manufacture its own AI chip has lifted semiconductor equipment names like Applied Materials, as investors see more demand for wafer fabrication tools and AI infrastructure. Applied Materials, KLA, Lam Research Take Off on Meta’s Chip Plans
• Positive Sentiment: CEO Gary Dickerson said chipmakers have “tremendous visibility” into demand and that AI investment could run longer than expected, reinforcing the view that Applied Materials has a multi-year growth runway. Applied Materials (AMAT) Stock Jumps after CEO Says AI Chip Demand Has Years to Run
• Positive Sentiment: Stifel raised its price target on Applied Materials to $650 from $530 and Needham lifted its target to $740 from $530, both with buy ratings, signaling stronger confidence in earnings and valuation. Applied Materials price target raised by Stifel / Needham
• Positive Sentiment: Broader chip-sector strength also helped, with semiconductor stocks rallying as investors rotated back into AI-linked names and equipment makers. US stocks end higher; chip surge offsets Iran worries
• Neutral Sentiment: Applied Materials was removed from several Russell value indices in late June, which may affect index-driven ownership and how some investors classify the stock, but it is not a direct operating setback. How Investors Are Reacting To Applied Materials (AMAT) Being Dropped From Key Russell Value Indices

Institutional Investors Weigh In On Applied Materials

A number of hedge funds have recently bought and sold shares of AMAT. JFS Wealth Advisors LLC raised its position in shares of Applied Materials by 4.3% in the 2nd quarter. JFS Wealth Advisors LLC now owns 409 shares of the manufacturing equipment provider’s stock valued at $296,000 after purchasing an additional 17 shares in the last quarter. Tema ETFs LLC boosted its stake in shares of Applied Materials by 5.1% during the 2nd quarter. Tema ETFs LLC now owns 18,181 shares of the manufacturing equipment provider’s stock valued at $13,145,000 after buying an additional 880 shares during the last quarter. Haven Capital Group Inc. acquired a new stake in shares of Applied Materials during the second quarter worth approximately $260,000. West Branch Capital LLC grew its position in shares of Applied Materials by 8.8% during the second quarter. West Branch Capital LLC now owns 5,661 shares of the manufacturing equipment provider’s stock worth $4,093,000 after buying an additional 458 shares in the last quarter. Finally, Canvas Wealth Advisors LLC increased its stake in shares of Applied Materials by 5.0% in the second quarter. Canvas Wealth Advisors LLC now owns 817 shares of the manufacturing equipment provider’s stock worth $591,000 after buying an additional 39 shares during the last quarter. Institutional investors and hedge funds own 80.56% of the company’s stock.

Applied Materials Trading Up 2.4%

The firm has a market cap of $478.36 billion, a P/E ratio of 56.57, a price-to-earnings-growth ratio of 1.59 and a beta of 1.57. The business’s 50 day moving average is $513.50 and its 200-day moving average is $400.88. The company has a quick ratio of 1.80, a current ratio of 2.51 and a debt-to-equity ratio of 0.22.

Applied Materials (NASDAQ:AMAT) last posted its quarterly earnings data on Thursday, May 14th. The manufacturing equipment provider reported $2.86 EPS for the quarter, beating analysts’ consensus estimates of $2.68 by $0.18. The firm had revenue of $7.91 billion for the quarter, compared to the consensus estimate 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 was up 11.4% compared to the same quarter last year. During the same period in the prior year, the firm posted $2.39 EPS. Applied Materials has set its Q3 2026 guidance at 3.160-3.560 EPS. As a group, analysts forecast that Applied Materials, Inc. will post 12.11 earnings per share for the current fiscal year.

Applied Materials Announces Dividend

The business also recently declared 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. The ex-dividend date of this dividend is Thursday, August 20th. This represents a $2.12 annualized dividend and a dividend yield of 0.4%. Applied Materials’s dividend payout ratio (DPR) is presently 19.91%.

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.