Applied Materials (NASDAQ:AMAT) Trading 1.2% Higher – Still a Buy?

Shares of Applied Materials, Inc. (NASDAQ:AMAT) traded up 1.2% on Friday . The company traded as high as $536.54 and last traded at $507.67. 7,372,347 shares were traded during trading, a decline of 11% from the average daily volume of 8,299,655 shares. The stock had previously closed at $501.77.

Applied Materials News Roundup

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

• Positive Sentiment: Semiconductor stocks rallied this week on strong technology earnings, while three semiconductor ETFs ranked among the largest recipients of new investor cash. The sector-wide buying provides a favorable backdrop for Applied Materials. Semiconductor ETFs Draw Cash This Week as Chip Stocks Rally
• Positive Sentiment: A bullish analysis maintains a “Strong Buy” view after AMAT’s substantial multiyear advance, citing the company’s exposure to AI-driven semiconductor equipment demand and continued operating momentum. Applied Materials: Why I’m Maintaining A Strong Buy After A 45% Run
• Positive Sentiment: Zacks highlighted Applied Materials’ AI-driven momentum, record results, expanding margins and improving customer visibility. These factors reinforce expectations for durable growth. AMAT recently exceeded quarterly earnings and revenue estimates, with revenue increasing year over year and upbeat quarterly earnings guidance. The Zacks Analyst Blog Highlights Applied Materials
• Neutral Sentiment: Coverage of Lam Research’s surge indicates that AI equipment demand was already visible in industry results. This supports the semiconductor-equipment cycle generally, although it does not provide a company-specific update for AMAT. Lam Research Stock’s Surge Was Building In Plain Sight
• Negative Sentiment: Despite long-term support from initiatives such as the AI Materials Foundry, one valuation analysis argues that AMAT may not be a bargain after a 218.9% five-year gain. The elevated valuation and high expectations could limit additional upside or increase sensitivity to any slowdown in AI-related spending. Applied Materials Stock May Not Be A Bargain Despite AI Materials Foundry News

Analyst Ratings Changes

AMAT has been the topic of a number of recent research reports. Seaport Research Partners started coverage on Applied Materials in a report on Monday, May 4th. They issued a “buy” rating and a $500.00 target price on the stock. Morgan Stanley upped their price objective on shares of Applied Materials from $502.00 to $647.00 and gave the stock an “equal weight” rating in a report on Monday, July 6th. Zacks Research raised shares of Applied Materials from a “hold” rating to a “strong-buy” rating in a research note on Wednesday, July 1st. Deutsche Bank Aktiengesellschaft raised their price objective on shares of Applied Materials from $450.00 to $550.00 and gave the company a “buy” rating in a research note on Friday, May 15th. Finally, Needham & Company LLC boosted their target price on shares of Applied Materials from $530.00 to $740.00 and gave the stock a “buy” rating in a research report on Friday, July 10th. One investment analyst has rated the stock with a Strong Buy rating, twenty-seven have assigned a Buy rating and six have issued a Hold rating to the company. According to MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $599.19.

Applied Materials Stock Up 1.2%

The company has a current ratio of 2.51, a quick ratio of 1.80 and a debt-to-equity ratio of 0.22. The stock has a market capitalization of $403.07 billion, a PE ratio of 47.67, a P/E/G ratio of 1.29 and a beta of 1.57. The stock’s fifty day simple moving average is $550.86 and its 200-day simple moving average is $429.98.

Applied Materials (NASDAQ:AMAT) last announced its earnings results on Thursday, May 14th. The manufacturing equipment provider reported $2.86 EPS for the quarter, beating the consensus estimate of $2.68 by $0.18. Applied Materials had a net margin of 29.31% and a return on equity of 36.97%. The company had revenue of $7.91 billion during the quarter, compared to the consensus estimate of $7.68 billion. During the same quarter in the prior year, the company posted $2.39 earnings per share. The firm’s revenue for the quarter was up 11.4% on a year-over-year basis. Applied Materials has set its Q3 2026 guidance at 3.160-3.560 EPS. As a group, sell-side analysts forecast that Applied Materials, Inc. will post 12.14 EPS for the current fiscal year.

Applied Materials Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Thursday, August 20th will be given a dividend of $0.53 per share. The ex-dividend date of this dividend is Thursday, August 20th. This represents a $2.12 annualized dividend and a dividend yield of 0.4%. Applied Materials’s dividend payout ratio (DPR) is currently 19.91%.

Insider Transactions at Applied Materials

In related news, SVP Omkaram Nalamasu sold 24,263 shares of Applied Materials stock in a transaction on Tuesday, June 16th. The stock was sold at an average price of $593.43, for a total transaction of $14,398,392.09. Following the sale, the senior vice president directly owned 146,916 shares in the company, valued at approximately $87,184,361.88. This trade represents a 14.17% 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, CEO Gary E. Dickerson sold 71,727 shares of the business’s stock in a transaction on Tuesday, June 16th. The stock was sold at an average price of $593.75, for a total value of $42,587,906.25. Following the completion of the transaction, the chief executive officer directly owned 1,695,164 shares in the company, valued at approximately $1,006,503,625. This represents a 4.06% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 278,088 shares of company stock worth $169,654,805. 0.30% of the stock is owned by insiders.

Institutional Investors Weigh In On Applied Materials

A number of hedge funds have recently made changes to their positions in the business. Financial Freedom LLC bought a new position in Applied Materials during the first quarter valued at about $28,000. Elevation Wealth Partners LLC increased its holdings in Applied Materials by 34.8% during the second quarter. Elevation Wealth Partners LLC now owns 93 shares of the manufacturing equipment provider’s stock worth $67,000 after buying an additional 24 shares during the last quarter. Cornerstone Financial Management LLC bought a new stake in Applied Materials in the fourth quarter worth about $25,000. Whipplewood Advisors LLC raised its position in Applied Materials by 218.8% in the first quarter. Whipplewood Advisors LLC now owns 102 shares of the manufacturing equipment provider’s stock worth $35,000 after acquiring an additional 70 shares during the period. Finally, Wilkerson Advisory Group LLC purchased a new position in Applied Materials in the fourth quarter valued at about $26,000. 80.56% of the stock is currently owned by institutional investors.

About Applied Materials

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.