Applied Materials (NASDAQ:AMAT) Trading 5.5% Higher After Analyst Upgrade

Applied Materials, Inc. (NASDAQ:AMAT)’s share price traded up 5.5% on Monday after Wall Street Zen upgraded the stock from a hold rating to a buy rating. The company traded as high as $539.81 and last traded at $535.31. 8,576,033 shares were traded during mid-day trading, an increase of 4% from the average daily volume of 8,264,229 shares. The stock had previously closed at $507.18.

Several other equities research analysts have also recently commented on AMAT. The Goldman Sachs Group reissued a “buy” rating and issued a $645.00 target price on shares of Applied Materials in a research note on Monday, August 3rd. Needham & Company LLC reiterated a “buy” rating and issued a $740.00 price target on shares of Applied Materials in a report on Friday. Citigroup reiterated a “buy” rating on shares of Applied Materials in a research report on Monday, August 3rd. Bank of America dropped their price objective on Applied Materials from $720.00 to $650.00 and set a “buy” rating for the company in a report on Friday. Finally, Barclays upped their target price on shares of Applied Materials from $500.00 to $590.00 and gave the company an “overweight” rating in a research report on Thursday, June 11th. One research analyst has rated the stock with a Strong Buy rating, twenty-seven have issued a Buy rating and six have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $640.17.

Insider Activity

In other news, insider Prabu G. Raja sold 50,000 shares of the business’s stock in a transaction dated Thursday, June 4th. The stock was sold at an average price of $505.28, for a total transaction of $25,264,000.00. Following the completion of the transaction, the insider directly owned 356,642 shares in the company, valued at approximately $180,204,069.76. The trade was a 12.30% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, SVP Timothy M. Deane sold 8,621 shares of the 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 completion of the sale, the senior vice president owned 134,631 shares in the company, valued at $79,534,609.56. This represents a 6.02% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 278,088 shares of company stock valued at $169,654,805. Insiders own 0.30% of the company’s stock.

Key Headlines Impacting Applied Materials

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

• Positive Sentiment: Applied Materials reported fiscal third-quarter revenue of $9.12 billion, up 24.8% year over year, while adjusted earnings of $3.50 per share exceeded analyst expectations. Management’s fiscal fourth-quarter revenue guidance of approximately $10.25 billion was reportedly 6.1% above consensus, reflecting continued demand from artificial intelligence, advanced packaging, and other semiconductor markets. AMAT Q2 Deep Dive: AI Demand and Advanced Packaging Drive Guidance Upside, Market Reacts Cautiously
• Positive Sentiment: A separate analysis highlighted record revenue and improving guidance, arguing that the stock remains more than 25% below its high despite strong operating results. That valuation gap may be attracting investors who believe the company’s growth will persist. Applied Materials Trades More Than 25% Below Its High With Revenue at a Record
• Positive Sentiment: B. Riley Financial and Needham & Company reiterated Buy ratings on Applied Materials, while separate analyst actions raised price targets to $600 and $660. The recommendations reinforce expectations for additional upside if earnings growth and AI-related demand continue. Applied Materials’ Buy Rating Reiterated at B. Riley Financial Applied Materials’ Buy Rating Reiterated at Needham Applied Materials Price Target Raised to $600 Applied Materials Price Target Raised to $660
• Neutral Sentiment: The broader market backdrop remains mixed, with the S&P 500 near a record but investors monitoring weak retail data, geopolitical tensions, and upcoming economic releases. These factors could influence semiconductor-stock volatility even as AMAT’s company-specific fundamentals remain strong. S&P 500 Nears Record as Weak Retail Data and Iran Tensions Shape Critical Week
• Negative Sentiment: Some market commentary noted a cautious reaction to the earnings report and options data suggested potential volatility, indicating that investors may still be concerned about elevated expectations and the stock’s premium valuation. Applied Materials Stock Is Down on Earnings

Institutional Trading of Applied Materials

Several hedge funds have recently added to or reduced their stakes in the business. JFS Wealth Advisors LLC lifted its stake in Applied Materials by 4.3% in the second quarter. JFS Wealth Advisors LLC now owns 409 shares of the manufacturing equipment provider’s stock valued at $296,000 after acquiring an additional 17 shares during the last quarter. Innovative Asset Advisors Group LLC raised its holdings in shares of Applied Materials by 2.1% in the 2nd quarter. Innovative Asset Advisors Group LLC now owns 961 shares of the manufacturing equipment provider’s stock valued at $695,000 after purchasing an additional 20 shares during the period. Stonebridge Financial Group LLC lifted its stake in Applied Materials by 2.1% in the 2nd quarter. Stonebridge Financial Group LLC now owns 1,003 shares of the manufacturing equipment provider’s stock valued at $725,000 after purchasing an additional 21 shares during the last quarter. N.E.W. Advisory Services LLC grew its holdings in Applied Materials by 5.9% during the second quarter. N.E.W. Advisory Services LLC now owns 377 shares of the manufacturing equipment provider’s stock worth $273,000 after purchasing an additional 21 shares during the period. Finally, IMG Wealth Management Inc. increased its position in Applied Materials by 13.0% during the second quarter. IMG Wealth Management Inc. now owns 183 shares of the manufacturing equipment provider’s stock worth $132,000 after buying an additional 21 shares during the last quarter. Institutional investors and hedge funds own 80.56% of the company’s stock.

Applied Materials Stock Up 5.5%

The stock has a market cap of $425.01 billion, a P/E ratio of 46.15, a price-to-earnings-growth ratio of 1.25 and a beta of 1.61. The firm has a 50 day simple moving average of $564.15 and a 200-day simple moving average of $445.77. The company has a quick ratio of 1.79, a current ratio of 2.42 and a debt-to-equity ratio of 0.20.

Applied Materials (NASDAQ:AMAT) last posted its earnings results on Thursday, August 13th. The manufacturing equipment provider reported $3.50 earnings per share for the quarter, topping analysts’ consensus estimates of $3.40 by $0.10. Applied Materials had a return on equity of 38.02% and a net margin of 30.05%.The business had revenue of $9.12 billion for the quarter, compared to analyst estimates of $8.99 billion. During the same period in the previous year, the firm earned $2.48 EPS. The firm’s revenue was up 24.8% compared to the same quarter last year. Applied Materials has set its Q4 2026 guidance at 3.820-4.220 EPS. On average, equities research analysts forecast that Applied Materials, Inc. will post 12.48 earnings per share for the current fiscal year.

Applied Materials Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Thursday, August 20th will be given a $0.53 dividend. 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 is presently 18.28%.

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.