Applied Materials (NASDAQ:AMAT) Trading 1.2% Higher – Should You Buy?

Applied Materials, Inc. (NASDAQ:AMATGet Free Report) shares shot up 1.2% during trading on Friday . The stock traded as high as $323.64 and last traded at $322.47. 6,024,708 shares traded hands during mid-day trading, a decline of 24% from the average session volume of 7,906,160 shares. The stock had previously closed at $318.79.

Applied Materials News Roundup

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

Analyst Upgrades and Downgrades

Several brokerages have issued reports on AMAT. Susquehanna upgraded Applied Materials from a “neutral” rating to a “positive” rating and lifted their price objective for the company from $180.00 to $400.00 in a research report on Sunday, January 11th. Royal Bank Of Canada assumed coverage on Applied Materials in a research note on Wednesday, January 14th. They issued an “outperform” rating and a $385.00 target price for the company. Needham & Company LLC upped their price target on shares of Applied Materials from $260.00 to $390.00 and gave the stock a “buy” rating in a research report on Tuesday. Jefferies Financial Group increased their price objective on shares of Applied Materials from $260.00 to $360.00 and gave the stock a “buy” rating in a report on Monday, December 15th. Finally, Bank of America raised their price objective on shares of Applied Materials from $300.00 to $350.00 and gave the company a “buy” rating in a research report on Tuesday, January 13th. Twenty-three investment analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $294.75.

Get Our Latest Stock Analysis on AMAT

Applied Materials Stock Up 1.2%

The firm’s 50 day moving average price is $270.76 and its 200-day moving average price is $222.58. The company has a current ratio of 2.61, a quick ratio of 1.87 and a debt-to-equity ratio of 0.32. The company has a market cap of $255.70 billion, a P/E ratio of 37.15, a price-to-earnings-growth ratio of 3.34 and a beta of 1.67.

Applied Materials (NASDAQ:AMATGet Free Report) last announced its quarterly earnings data on Thursday, November 13th. The manufacturing equipment provider reported $2.17 earnings per share for the quarter, beating the consensus estimate of $2.11 by $0.06. Applied Materials had a net margin of 24.67% and a return on equity of 39.26%. The business had revenue of $6.80 billion for the quarter, compared to analyst estimates of $6.68 billion. During the same period in the prior year, the business posted $2.32 earnings per share. Applied Materials’s revenue was down 3.5% compared to the same quarter last year. Applied Materials has set its Q1 2026 guidance at 1.980-2.380 EPS. As a group, equities research analysts expect that Applied Materials, Inc. will post 9.38 EPS for the current year.

Applied Materials Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, March 12th. Investors of record on Thursday, February 19th will be paid a dividend of $0.46 per share. The ex-dividend date of this dividend is Thursday, February 19th. This represents a $1.84 dividend on an annualized basis and a dividend yield of 0.6%. Applied Materials’s payout ratio is 21.20%.

Insider Transactions at Applied Materials

In other Applied Materials news, SVP Teri A. Little sold 4,000 shares of the stock in a transaction dated Tuesday, November 25th. The stock was sold at an average price of $238.24, for a total value of $952,960.00. Following the transaction, the senior vice president owned 84,351 shares of the company’s stock, valued at approximately $20,095,782.24. This represents a 4.53% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CAO Adam Sanders sold 609 shares of the business’s stock in a transaction dated Monday, December 1st. The stock was sold at an average price of $255.53, for a total value of $155,617.77. Following the transaction, the chief accounting officer owned 4,413 shares of the company’s stock, valued at $1,127,653.89. The trade was a 12.13% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 8,609 shares of company stock valued at $2,044,898 in the last quarter. 0.24% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Applied Materials

Hedge funds have recently bought and sold shares of the company. State Street Corp lifted its holdings in Applied Materials by 1.0% during the second quarter. State Street Corp now owns 38,920,984 shares of the manufacturing equipment provider’s stock worth $7,125,265,000 after acquiring an additional 391,540 shares in the last quarter. Geode Capital Management LLC raised its position in shares of Applied Materials by 2.0% during the second quarter. Geode Capital Management LLC now owns 21,026,363 shares of the manufacturing equipment provider’s stock worth $3,836,807,000 after purchasing an additional 407,282 shares during the period. Capital Research Global Investors lifted its holdings in shares of Applied Materials by 225.4% during the 3rd quarter. Capital Research Global Investors now owns 14,877,672 shares of the manufacturing equipment provider’s stock valued at $3,046,057,000 after purchasing an additional 10,305,182 shares in the last quarter. Alliancebernstein L.P. grew its position in shares of Applied Materials by 72.5% in the 2nd quarter. Alliancebernstein L.P. now owns 13,564,120 shares of the manufacturing equipment provider’s stock valued at $2,483,183,000 after purchasing an additional 5,700,349 shares during the period. Finally, Ameriprise Financial Inc. increased its stake in Applied Materials by 40.1% during the 3rd quarter. Ameriprise Financial Inc. now owns 12,520,114 shares of the manufacturing equipment provider’s stock worth $2,563,376,000 after purchasing an additional 3,583,751 shares in the last quarter. 80.56% of the stock is currently owned by institutional investors and hedge funds.

About Applied Materials

(Get Free Report)

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.

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