Applied Materials, Inc. (NASDAQ:AMAT) Sees Significant Decrease in Short Interest

Applied Materials, Inc. (NASDAQ:AMAT) saw a large drop in short interest during the month of January. As of January 30th, there was short interest totaling 13,733,468 shares, a drop of 14.6% from the January 15th total of 16,088,927 shares. Approximately 1.7% of the shares of the company are short sold. Based on an average daily volume of 7,828,801 shares, the short-interest ratio is currently 1.8 days. Based on an average daily volume of 7,828,801 shares, the short-interest ratio is currently 1.8 days. Approximately 1.7% of the shares of the company are short sold.

Applied Materials Trading Up 2.8%

AMAT stock opened at $369.30 on Thursday. The business has a fifty day moving average price of $300.66 and a 200 day moving average price of $240.45. The company has a debt-to-equity ratio of 0.30, a current ratio of 2.71 and a quick ratio of 1.94. Applied Materials has a fifty-two week low of $123.74 and a fifty-two week high of $376.32. The stock has a market capitalization of $293.12 billion, a price-to-earnings ratio of 37.80, a P/E/G ratio of 1.67 and a beta of 1.70.

Applied Materials (NASDAQ:AMAT) last announced its earnings results on Thursday, February 12th. The manufacturing equipment provider reported $2.38 EPS for the quarter, topping the consensus estimate of $2.21 by $0.17. Applied Materials had a return on equity of 37.52% and a net margin of 27.78%.The company had revenue of $7.01 billion for the quarter, compared to analysts’ expectations of $6.88 billion. During the same quarter in the prior year, the business earned $2.38 earnings per share. The business’s revenue for the quarter was down 2.1% on a year-over-year basis. Applied Materials has set its Q2 2026 guidance at 2.440-2.840 EPS. Analysts expect that Applied Materials will post 9.38 EPS for the current fiscal year.

Applied Materials Announces Dividend

The business 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 dividend of $0.46 per share. This represents a $1.84 dividend on an annualized basis and a dividend yield of 0.5%. The ex-dividend date is Thursday, February 19th. Applied Materials’s dividend payout ratio is presently 18.83%.

Wall Street Analyst Weigh In

Several equities research analysts have issued reports on AMAT shares. The Goldman Sachs Group boosted their price target on shares of Applied Materials from $310.00 to $390.00 and gave the company a “buy” rating in a report on Friday, February 13th. Needham & Company LLC upped their target price on shares of Applied Materials from $390.00 to $440.00 and gave the company a “buy” rating in a research note on Friday, February 13th. Craig Hallum reissued a “hold” rating and issued a $190.00 price target on shares of Applied Materials in a research report on Friday, November 14th. Jefferies Financial Group upped their price objective on Applied Materials from $260.00 to $360.00 and gave the company a “buy” rating in a research note on Monday, December 15th. Finally, Stifel Nicolaus raised their target price on Applied Materials from $340.00 to $450.00 and gave the stock a “buy” rating in a research report on Friday, February 13th. Twenty-seven research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the stock. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $363.04.

Insiders Place Their Bets

In related news, CAO Adam Sanders sold 609 shares of the stock in a transaction dated Monday, December 1st. The shares were sold at an average price of $255.53, for a total value of $155,617.77. Following the completion of the sale, the chief accounting officer owned 4,413 shares in the company, valued at approximately $1,127,653.89. This trade represents a 12.13% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, SVP Teri A. Little sold 4,000 shares of Applied Materials 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 sale, the senior vice president directly owned 84,351 shares in the company, valued at approximately $20,095,782.24. This trade represents a 4.53% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 9,609 shares of company stock worth $2,914,628 in the last ninety days. Insiders own 0.30% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the company. Strive Financial Group LLC bought a new position in Applied Materials in the 4th quarter valued at $407,000. First Commonwealth Financial Corp PA lifted its stake in shares of Applied Materials by 5.6% during the fourth quarter. First Commonwealth Financial Corp PA now owns 6,089 shares of the manufacturing equipment provider’s stock valued at $1,565,000 after acquiring an additional 321 shares during the period. Blue Sparrow LLC DE bought a new position in Applied Materials in the fourth quarter valued at about $30,711,000. Mercer Global Advisors Inc. ADV increased its position in Applied Materials by 10.5% in the fourth quarter. Mercer Global Advisors Inc. ADV now owns 267,979 shares of the manufacturing equipment provider’s stock worth $69,645,000 after purchasing an additional 25,539 shares during the period. Finally, Corecam AG bought a new stake in Applied Materials during the 4th quarter worth about $293,000. Institutional investors and hedge funds own 80.56% of the company’s stock.

Key Stories Impacting Applied Materials

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

• Positive Sentiment: Company fundamentals and guidance — AMAT beat Q1 estimates and management gave aggressive growth guidance (CEO projected ~20% calendar‑2026 sales and strong Q2 revenue outlook), which has driven analyst target‑price increases and renewed optimism among investors. 3 Under-the-Radar Earnings Surprises Could Signal a New Trend (AMAT)
• Positive Sentiment: Analyst upgrades and estimate revisions — Zacks bumped AMAT to a Strong Buy and published commentary noting upward earnings‑estimate revisions, supporting near‑term upside expectations. Applied Materials (AMAT) Upgraded to Strong Buy: Here’s Why
• Positive Sentiment: Large bullish options activity — unusually big call buying (≈97,138 calls, ~+231% vs. typical daily volume) suggests traders are positioning for further upside or protecting long exposure.
• Neutral Sentiment: Investor events — Applied Materials confirmed management will appear at upcoming investor conferences (opportunity for further detail/Q&A but not an immediate earnings surprise). Applied Materials to Participate in Upcoming Investor Conferences
• Neutral Sentiment: Mixed analyst commentary — some publications note conflicting analyst views on AMAT amid sector rotation and valuation debates; this creates variable near‑term sentiment even as fundamentals look strong. Analysts Have Conflicting Sentiments on These Technology Companies
• Neutral Sentiment: Short‑interest data appears unreliable — reports show zero/NaN short interest and a 0.0 days‑to‑cover metric, which is likely a reporting anomaly and not meaningful for positioning today.
• Negative Sentiment: Insider sale — CFO Brice Hill sold 5,000 shares for ~$1.8M, trimming his stake by ~3.5%; while routine insider sales often fund personal liquidity, some investors view insider selling as a mild negative signal. SEC Form 4

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.