Applied Materials (NASDAQ:AMAT) Trading 2.1% Higher – Here’s What Happened

Applied Materials, Inc. (NASDAQ:AMAT)’s stock price shot up 2.1% on Thursday . The stock traded as high as $304.35 and last traded at $303.99. 8,434,047 shares changed hands during mid-day trading, an increase of 2% from the average session volume of 8,269,477 shares. The stock had previously closed at $297.60.

Key Stories Impacting Applied Materials

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

• Positive Sentiment: Citi sharply raised its price target to $400 (from $250) and reiterated a Buy ahead of AMAT’s January-quarter earnings, signaling strong analyst conviction into the report. Citi Jumps Applied Materials (AMAT) Target Ahead of Earnings
• Positive Sentiment: Another published target lift pushed AMAT’s consensus targets higher, supporting the stock’s momentum and investor expectations for stronger forward guidance. Applied Materials (AMAT) price target increased by 17.14% to 329.63
• Positive Sentiment: Zacks and other services highlight AMAT’s strong earnings-surprise history and rate the company as likely to beat upcoming estimates, which is supporting near-term buying interest. Applied Materials (AMAT) Expected to Beat Earnings Estimates
• Neutral Sentiment: AMAT is set to report January-quarter results this week, so near-term moves will be sensitive to guidance and commentary on chip-equipment demand cycles. Applied Materials (AMAT) to Release Earnings on Thursday
• Neutral Sentiment: Market commentary and “too late/ bull case” pieces note AMAT’s strong 1‑year run; these frame risk/reward but don’t change fundamentals ahead of the print. Is It Too Late To Consider Applied Materials (AMAT)
• Negative Sentiment: Separately, the stock experienced a sharp intraday drop earlier this week (~9%), highlighting volatility and that disappointing headlines or guidance could trigger rapid sell-offs. Applied Materials Stock (AMAT) Plunges despite Hopes for a ‘More Constructive Direction’
• Negative Sentiment: Recent sessions showed AMAT underperforming the broader market at times, underscoring sensitivity to cyclical demand signals in semiconductor capital spending. Here’s Why Applied Materials (AMAT) Fell More Than Broader Market

Wall Street Analyst Weigh In

Several research firms have weighed in on AMAT. Mizuho set a $370.00 price target on shares of Applied Materials and gave the company an “outperform” rating in a research note on Tuesday, January 27th. Sanford C. Bernstein reaffirmed a “market perform” rating and set a $325.00 price target on shares of Applied Materials in a research note on Monday, January 12th. Wells Fargo & Company increased their price target on Applied Materials from $290.00 to $350.00 and gave the stock an “overweight” rating in a report on Thursday, January 15th. Barclays raised Applied Materials from an “equal weight” rating to an “overweight” rating and upped their target price for the stock from $250.00 to $360.00 in a research report on Thursday, January 15th. Finally, UBS Group reiterated a “buy” rating and issued a $405.00 target price on shares of Applied Materials in a report on Monday. Twenty-four equities research analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $311.04.

Applied Materials Trading Up 2.1%

The company has a debt-to-equity ratio of 0.32, a quick ratio of 1.87 and a current ratio of 2.61. The firm has a market capitalization of $241.28 billion, a P/E ratio of 35.02, a PEG ratio of 2.83 and a beta of 1.70. The firm has a 50 day simple moving average of $285.58 and a two-hundred day simple moving average of $229.79.

Applied Materials (NASDAQ:AMAT) last posted its earnings results on Thursday, November 13th. The manufacturing equipment provider reported $2.17 earnings per share (EPS) for the quarter, topping 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 firm had revenue of $6.80 billion during the quarter, compared to analyst estimates of $6.68 billion. During the same quarter in the prior year, the business posted $2.32 EPS. The business’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. Equities research analysts forecast that Applied Materials, Inc. will post 9.38 earnings per share for the current year.

Applied Materials Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, March 12th. Shareholders of record on Thursday, February 19th will be given a dividend of $0.46 per share. The ex-dividend date of this dividend is Thursday, February 19th. This represents a $1.84 annualized dividend and a dividend yield of 0.6%. Applied Materials’s dividend payout ratio (DPR) is currently 21.20%.

Insider Activity at Applied Materials

In related news, CAO Adam Sanders sold 609 shares of the stock in a transaction that occurred on Monday, December 1st. The stock was sold at an average price of $255.53, for a total transaction of $155,617.77. Following the completion of the sale, the chief accounting officer directly owned 4,413 shares of the company’s stock, valued at approximately $1,127,653.89. This trade represents a 12.13% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, SVP Teri A. Little sold 4,000 shares of Applied Materials stock in a transaction on Tuesday, November 25th. The stock was sold at an average price of $238.24, for a total value of $952,960.00. Following the sale, the senior vice president owned 84,351 shares in the company, valued at $20,095,782.24. This trade represents a 4.53% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 8,609 shares of company stock valued at $2,044,898. 0.30% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Applied Materials

Several institutional investors have recently added to or reduced their stakes in the stock. Marquette Asset Management LLC boosted its stake in Applied Materials by 150.0% in the third quarter. Marquette Asset Management LLC now owns 125 shares of the manufacturing equipment provider’s stock valued at $26,000 after acquiring an additional 75 shares during the last quarter. Redmont Wealth Advisors LLC purchased a new position in Applied Materials in the third quarter valued at approximately $26,000. Highline Wealth Partners LLC lifted its stake in Applied Materials by 48.7% in the fourth quarter. Highline Wealth Partners LLC now owns 116 shares of the manufacturing equipment provider’s stock valued at $30,000 after purchasing an additional 38 shares during the last quarter. Financial Gravity Companies Inc. bought a new position in Applied Materials during the second quarter valued at $31,000. Finally, Manning & Napier Advisors LLC purchased a new stake in Applied Materials in the third quarter worth $31,000. Institutional investors own 80.56% of the company’s stock.

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.