Applied Materials (NASDAQ:AMAT) Downgraded to Hold Rating by Wall Street Zen

Wall Street Zen downgraded shares of Applied Materials (NASDAQ:AMAT) from a buy rating to a hold rating in a research note issued to investors on Saturday morning,Wall Street Zen reports.

Other analysts also recently issued research reports about the stock. Sanford C. Bernstein lifted their price target on shares of Applied Materials from $675.00 to $700.00 and gave the company an “outperform” rating in a research note on Friday, August 14th. Zacks Research raised Applied Materials from a “hold” rating to a “strong-buy” rating in a research note on Wednesday, July 1st. Morgan Stanley reduced their price objective on Applied Materials from $646.00 to $642.00 and set an “equal weight” rating on the stock in a report on Friday, August 14th. TD Cowen reaffirmed a “buy” rating and set a $700.00 target price on shares of Applied Materials in a research report on Friday, August 14th. Finally, Cantor Fitzgerald reiterated an “overweight” rating on shares of Applied Materials in a report on Friday, August 14th. One investment analyst has rated the stock with a Strong Buy rating, twenty-seven have given a Buy rating and five have given a Hold rating to the stock. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $658.45.

Applied Materials Trading Up 0.5%

AMAT stock opened at $456.49 on Friday. The company has a market capitalization of $362.27 billion, a PE ratio of 39.35, a P/E/G ratio of 1.27 and a beta of 1.60. Applied Materials has a 12 month low of $167.18 and a 12 month high of $739.67. The firm’s 50-day moving average is $513.89 and its 200 day moving average is $463.93. The company has a debt-to-equity ratio of 0.20, a current ratio of 2.42 and a quick ratio of 1.79.

Applied Materials (NASDAQ:AMAT) last announced its quarterly earnings data on Thursday, August 13th. The manufacturing equipment provider reported $3.50 earnings per share for the quarter, beating analysts’ consensus estimates of $3.40 by $0.10. The company had revenue of $9.12 billion during the quarter, compared to analyst estimates of $8.99 billion. Applied Materials had a net margin of 30.05% and a return on equity of 38.02%. The firm’s revenue for the quarter was up 24.8% on a year-over-year basis. During the same quarter last year, the business posted $2.48 EPS. Applied Materials has set its Q4 2026 guidance at 3.820-4.220 EPS. On average, research analysts anticipate that Applied Materials will post 12.76 EPS for the current year.

Applied Materials Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, December 10th. Investors of record on Thursday, November 19th will be issued a dividend of $0.53 per share. This represents a $2.12 annualized dividend and a yield of 0.5%. The ex-dividend date of this dividend is Thursday, November 19th. Applied Materials’s dividend payout ratio (DPR) is presently 18.28%.

Insider Buying and Selling

In other news, CEO Gary Dickerson sold 71,727 shares of Applied Materials 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 transaction, the chief executive officer directly owned 1,695,164 shares in the company, valued at approximately $1,006,503,625. This trade represents a 4.06% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, SVP Timothy M. Deane sold 8,621 shares of Applied Materials stock in a transaction on Monday, June 15th. The shares were sold at an average price of $590.76, for a total value of $5,092,941.96. Following the completion of the transaction, 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. Insiders have sold a total of 232,692 shares of company stock valued at $146,579,059 over the last ninety days. Company insiders own 0.30% of the company’s stock.

Institutional Investors Weigh In On Applied Materials

A number of institutional investors have recently added to or reduced their stakes in AMAT. Cornerstone Financial Management LLC bought a new position in shares of Applied Materials during the 4th quarter worth approximately $25,000. Wilkerson Advisory Group LLC purchased a new position in Applied Materials in the fourth quarter worth $26,000. Harborfront Financial Group LLC purchased a new stake in shares of Applied Materials during the 2nd quarter valued at $27,000. Financial Freedom LLC purchased a new stake in shares of Applied Materials during the 1st quarter valued at $28,000. Finally, Orion Capital Management LLC acquired a new stake in shares of Applied Materials in the 2nd quarter worth $33,000. Institutional investors own 80.56% of the company’s stock.

Key Applied Materials News

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

• Positive Sentiment: CEO Gary Dickerson said the AI boom remains durable, citing customer orders that extend years into the future. Commentary from industry peers reportedly supports continued demand for semiconductor manufacturing equipment, strengthening the growth outlook for AMAT. Applied Materials AI demand outlook
• Positive Sentiment: Applied Materials maintained its quarterly dividend at $0.53 per share, payable December 10 to shareholders of record November 19. The payment follows a 15% dividend increase announced in March and signals continued confidence in cash generation. Applied Materials dividend announcement
• Positive Sentiment: AMAT’s latest reported quarter exceeded expectations, with adjusted EPS of $3.50 versus a $3.40 consensus estimate and revenue of $9.12 billion versus $8.99 billion. Revenue increased 24.8% year over year, supporting the bullish AI and semiconductor-cycle narrative.
• Neutral Sentiment: Investor articles are comparing AMAT favorably with Intel because Applied Materials is profitable, has relatively low debt and supplies the equipment needed to build advanced chips. However, the stock’s roughly 39 price-to-earnings ratio leaves less room for execution disappointments. Applied Materials versus Intel comparison
• Neutral Sentiment: Analyst coverage remains broadly favorable, with a consensus “Moderate Buy” rating and an average target of $658.45. Nonetheless, the wide range between bullish and bearish scenarios highlights uncertainty surrounding AI demand, semiconductor cyclicality and valuation.
• Negative Sentiment: Director Judy Bruner sold 1,000 shares for approximately $465,000, reducing her holdings by 3.77%. She still retains a substantial position, so the transaction is a modest sentiment negative rather than a major change in insider conviction. SEC insider sale filing
• Negative Sentiment: Risk-focused commentary notes that AMAT tends to amplify market moves. Its beta of 1.60 and elevated valuation could make the stock vulnerable if AI spending expectations weaken or broader technology shares pull back. Applied Materials volatility analysis

Applied Materials Company Profile

Applied Materials, Inc is a global provider of materials engineering solutions used to manufacture semiconductors, displays and other advanced electronic products. The company develops and supplies equipment, services and software that help customers build and improve the performance of chips and display panels.

Its semiconductor products support processes including deposition, etch, patterning, inspection, metrology and materials modification. Applied Materials also provides equipment and services for display manufacturing, including technologies used in producing liquid-crystal and organic light-emitting diode displays, as well as solutions for adjacent markets such as solar and other specialty applications.

Founded in 1967 and headquartered in Santa Clara, California, Applied Materials serves semiconductor and display manufacturers worldwide through operations, customer-support centers and research and development activities across major technology-producing regions.