Applied Materials (NASDAQ:AMAT) Stock Price Up 2.5% – Here’s Why

Applied Materials, Inc. (NASDAQ:AMAT)’s stock price shot up 2.5% during mid-day trading on Monday . The stock traded as high as $332.40 and last traded at $330.57. 7,283,078 shares traded hands during trading, a decline of 10% from the average session volume of 8,128,418 shares. The stock had previously closed at $322.51.

Analysts Set New Price Targets

Several research firms have weighed in on AMAT. Sanford C. Bernstein reissued a “market perform” rating and set a $325.00 target price on shares of Applied Materials in a research report on Monday, January 12th. Morgan Stanley raised their target price on Applied Materials from $273.00 to $364.00 and gave the stock an “overweight” rating in a research note on Monday, February 2nd. B. Riley Financial reiterated a “buy” rating on shares of Applied Materials in a research note on Monday. Evercore reaffirmed an “outperform” rating and set a $290.00 target price on shares of Applied Materials in a report on Friday, November 14th. Finally, The Goldman Sachs Group reiterated a “buy” rating and issued a $310.00 target price on shares of Applied Materials in a research report on Friday, January 9th. Twenty-four investment analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $315.15.

Applied Materials Stock Up 2.5%

The company has a market cap of $262.38 billion, a price-to-earnings ratio of 38.08, a PEG ratio of 2.86 and a beta of 1.70. 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 business has a fifty day moving average of $288.07 and a two-hundred day moving average of $231.83.

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

Applied Materials Dividend Announcement

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

Insider Activity at Applied Materials

In other Applied Materials news, SVP Teri A. Little sold 4,000 shares of Applied Materials stock in a transaction dated Tuesday, November 25th. The shares were sold at an average price of $238.24, for a total transaction of $952,960.00. Following the transaction, the senior vice president directly owned 84,351 shares of the company’s stock, valued at $20,095,782.24. The trade was a 4.53% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CAO Adam Sanders sold 609 shares of Applied Materials stock in a transaction that occurred on Monday, December 1st. The shares were sold at an average price of $255.53, for a total transaction of $155,617.77. Following the sale, the chief accounting officer directly owned 4,413 shares in the company, valued at approximately $1,127,653.89. The trade was a 12.13% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 8,609 shares of company stock valued at $2,044,898. Insiders own 0.30% of the company’s stock.

Institutional Trading of Applied Materials

Several institutional investors and hedge funds have recently bought and sold shares of AMAT. Marquette Asset Management LLC increased its holdings in Applied Materials by 150.0% in the 3rd quarter. Marquette Asset Management LLC now owns 125 shares of the manufacturing equipment provider’s stock valued at $26,000 after purchasing an additional 75 shares during the last quarter. Redmont Wealth Advisors LLC acquired a new stake in Applied Materials during the 3rd quarter worth approximately $26,000. Highline Wealth Partners LLC boosted its holdings 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 period. Financial Gravity Companies Inc. purchased a new position in shares of Applied Materials in the 2nd quarter valued at about $31,000. Finally, Manning & Napier Advisors LLC acquired a new position in Applied Materials during the 3rd quarter worth approximately $31,000. 80.56% of the stock is currently owned by hedge funds and other institutional investors.

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.