Applied Materials (NASDAQ:AMAT) Trading Up 4.1% – Here’s What Happened

Applied Materials, Inc. (NASDAQ:AMAT) shares were up 4.1% during trading on Thursday . The company traded as high as $638.90 and last traded at $617.11. 16,601,756 shares changed hands during trading, an increase of 115% from the average daily volume of 7,714,619 shares. The stock had previously closed at $592.92.

Key Headlines Impacting Applied Materials

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

• Positive Sentiment: Citi raised its price target on Applied Materials, reinforcing confidence that AI-driven chip spending and memory-equipment demand can support further upside. Applied Materials surges as Citi lifts target on AI demand boom
• Positive Sentiment: Applied Materials unveiled SENZ, an integrated visual system for AI smart glasses, and partnered with EssilorLuxottica and Qualcomm, suggesting a new growth avenue in AI eyewear and optics. Applied Materials (AMAT) Launches SENZ With Qualcomm And EssilorLuxottica For AI Eyewear
• Positive Sentiment: Recent commentary highlighted strong fundamentals, record results, and optimism that AMAT is well positioned for the AI equipment super-cycle, which is helping sentiment around the stock. Applied Materials: The Cheapest Seat On The AI Equipment Super-Cycle
• Neutral Sentiment: Several insiders, including the CEO and senior executives, sold shares worth roughly $65 million, which may create some near-term caution but does not by itself change the company’s operating outlook. Why Applied Materials Insiders Sold $65 Million Worth of Stock
• Negative Sentiment: Heavy insider selling, including a large sale by CEO Gary Dickerson, could temper enthusiasm if investors view it as a sign the stock has run too far ahead of fundamentals. Timothy Deane Sells 8,621 Shares of Applied Materials (NASDAQ:AMAT) Stock

Analysts Set New Price Targets

A number of brokerages have recently issued reports on AMAT. HSBC assumed coverage on Applied Materials in a report on Friday, May 8th. They issued a “buy” rating and a $517.00 target price for the company. Mizuho lifted their price objective on Applied Materials from $500.00 to $540.00 and gave the company an “outperform” rating in a report on Wednesday, May 27th. Susquehanna boosted their target price on shares of Applied Materials from $435.00 to $500.00 and gave the company a “positive” rating in a research note on Thursday, April 9th. JPMorgan Chase & Co. increased their target price on shares of Applied Materials from $400.00 to $515.00 and gave the stock an “overweight” rating in a research report on Friday, May 15th. Finally, Stifel Nicolaus set a $530.00 price target on shares of Applied Materials in a report on Friday, May 15th. Twenty-seven analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average price target of $489.16.

Applied Materials Trading Up 4.1%

The business has a 50 day simple moving average of $441.16 and a 200 day simple moving average of $360.55. The company has a debt-to-equity ratio of 0.22, a current ratio of 2.51 and a quick ratio of 1.80. The company has a market cap of $489.96 billion, a price-to-earnings ratio of 57.94, a price-to-earnings-growth ratio of 1.58 and a beta of 1.67.

Applied Materials (NASDAQ:AMAT) last announced its earnings results on Thursday, May 14th. The manufacturing equipment provider reported $2.86 earnings per share for the quarter, beating analysts’ consensus estimates of $2.68 by $0.18. Applied Materials had a return on equity of 36.97% and a net margin of 29.31%.The company had revenue of $7.91 billion during the quarter, compared to analyst estimates of $7.68 billion. During the same period last year, the company posted $2.39 earnings per share. The firm’s quarterly revenue was up 11.4% compared to the same quarter last year. Applied Materials has set its Q3 2026 guidance at 3.160-3.560 EPS. As a group, equities analysts forecast that Applied Materials, Inc. will post 12.1 EPS for the current year.

Applied Materials Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Thursday, August 20th will be given a $0.53 dividend. This represents a $2.12 annualized dividend and a yield of 0.3%. The ex-dividend date is Thursday, August 20th. Applied Materials’s dividend payout ratio (DPR) is presently 19.91%.

Insider Buying and Selling

In other news, SVP Timothy M. Deane sold 8,621 shares of the company’s stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $590.76, for a total transaction of $5,092,941.96. Following the transaction, the senior vice president directly owned 134,631 shares in the company, valued at approximately $79,534,609.56. This represents a 6.02% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Gary E. Dickerson sold 71,727 shares of the stock in a transaction that occurred on 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 sale, the chief executive officer directly owned 1,695,164 shares in the company, valued at $1,006,503,625. This trade represents a 4.06% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 189,767 shares of company stock valued at $107,769,409. Insiders own 0.30% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of AMAT. Militia Capital Management LLC acquired a new stake in shares of Applied Materials in the 1st quarter valued at $295,000. Pine Valley Investments Ltd Liability Co lifted its stake in shares of Applied Materials by 10.9% during the first quarter. Pine Valley Investments Ltd Liability Co now owns 29,297 shares of the manufacturing equipment provider’s stock valued at $10,013,000 after acquiring an additional 2,890 shares during the period. First Nebraska Trust Co bought a new position in Applied Materials in the first quarter valued at about $29,488,000. Foguth Wealth Management LLC. bought a new position in Applied Materials in the first quarter valued at about $234,000. Finally, Financial Solutions Advisory Group Inc. acquired a new stake in Applied Materials in the first quarter worth about $885,000. 80.56% of the stock is currently owned by 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.