Applied Materials (NASDAQ:AMAT) Given “Outperform” Rating at Royal Bank Of Canada

Royal Bank Of Canada reiterated their outperform rating on shares of Applied Materials (NASDAQ:AMAT) in a research note issued to investors on Friday morning,Benzinga reports. They currently have a $600.00 price objective on the manufacturing equipment provider’s stock.

Several other brokerages have also recently issued reports on AMAT. Summit Insights cut Applied Materials from a “buy” rating to a “hold” rating in a research report on Friday. JPMorgan Chase & Co. upped their price target on shares of Applied Materials from $515.00 to $660.00 and gave the company an “overweight” rating in a research report on Friday, August 14th. Cantor Fitzgerald reaffirmed an “overweight” rating on shares of Applied Materials in a research report on Tuesday, October 20th. Morgan Stanley lowered their price objective on shares of Applied Materials from $563.00 to $538.00 and set an “equal weight” rating on the stock in a research note on Tuesday, November 3rd. Finally, Evercore set a $590.00 price objective on shares of Applied Materials in a report on Thursday, October 15th. Twenty-nine equities research analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the company’s stock. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $589.23.

Applied Materials Stock Performance

AMAT stock opened at $370.50 on Friday. The company has a market cap of $294.03 billion, a P/E ratio of 29.36, a price-to-earnings-growth ratio of 0.74 and a beta of 1.67. Applied Materials has a 1 year low of $203.40 and a 1 year high of $739.67. The company has a debt-to-equity ratio of 0.20, a current ratio of 2.42 and a quick ratio of 1.79. The stock’s fifty day moving average price is $437.91 and its 200-day moving average price is $446.02.

Applied Materials (NASDAQ:AMAT) last issued its quarterly earnings data on Thursday, November 12th. The manufacturing equipment provider reported $4.16 EPS for the quarter, topping the consensus estimate of $4.06 by $0.10. The company had revenue of $10.41 billion during the quarter, compared to analyst estimates of $10.30 billion. Applied Materials had a return on equity of 43.37% and a net margin of 29.29%. During the same quarter in the previous year, the company posted $2.17 earnings per share. Applied Materials has set its Q1 2027 guidance at 4.150-4.550 EPS. On average, equities analysts forecast that Applied Materials will post 18.28 earnings per share for the current year.

Applied Materials Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, December 10th. Investors of record on Thursday, November 19th will be issued a $0.53 dividend. This represents a $2.12 dividend on an annualized basis and a yield of 0.6%. The ex-dividend date of this dividend is Thursday, November 19th. Applied Materials’s dividend payout ratio (DPR) is currently 18.28%.

Insider Activity at Applied Materials

In related news, Director Judy Bruner sold 1,000 shares of Applied Materials stock in a transaction on Tuesday, September 8th. The stock was sold at an average price of $465.00, for a total transaction of $465,000.00. Following the transaction, the director directly owned 25,544 shares in the company, valued at approximately $11,877,960. The trade was a 3.77% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CAO Adam Sanders sold 725 shares of the business’s stock in a transaction dated Friday, October 2nd. The shares were sold at an average price of $544.56, for a total value of $394,806.00. Following the sale, the chief accounting officer directly owned 3,181 shares of the company’s stock, valued at $1,732,245.36. This represents a 18.56% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last three months, insiders have sold 9,225 shares of company stock worth $4,454,181. Corporate insiders own 0.30% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in the stock. BlackRock Inc. increased its holdings in Applied Materials by 1.6% in the 2nd quarter. BlackRock Inc. now owns 80,212,518 shares of the manufacturing equipment provider’s stock worth $57,993,650,000 after acquiring an additional 1,237,685 shares in the last quarter. State Street Corp lifted its holdings in Applied Materials by 85.4% during the second quarter. State Street Corp now owns 69,525,842 shares of the manufacturing equipment provider’s stock valued at $50,267,184,000 after purchasing an additional 32,018,892 shares in the last quarter. Amundi lifted its holdings in Applied Materials by 19.0% during the second quarter. Amundi now owns 7,808,207 shares of the manufacturing equipment provider’s stock valued at $5,645,344,000 after purchasing an additional 1,246,876 shares in the last quarter. Van ECK Associates Corp lifted its holdings in Applied Materials by 16.2% during the second quarter. Van ECK Associates Corp now owns 7,713,599 shares of the manufacturing equipment provider’s stock valued at $5,576,932,000 after purchasing an additional 1,073,879 shares in the last quarter. Finally, Bank of America Corp DE bought a new position in shares of Applied Materials in the second quarter worth approximately $5,252,863,000. 80.56% of the stock is owned by hedge funds and other institutional investors.

Trending Headlines about Applied Materials

Investors following AMAT have been watching these headlines:

• Positive Sentiment: Fiscal Q4 revenue reached a record $10.41 billion, up 53% year over year, while non-GAAP EPS rose 92% to $4.16; both topped analysts’ estimates. The company also reported higher margins and returned $2.42 billion to shareholders through dividends and buybacks. Applied Materials Announces Fourth Quarter and Fiscal Year 2026 Results
• Neutral Sentiment: Management said demand is running ahead of supply, but component shortages and customers’ limited clean-room capacity may constrain how quickly equipment deliveries can scale. China is expected to account for less than a quarter of business in 2027, reducing reliance on that market even as export restrictions remain a risk. Applied Materials Says Chip Demand Remains Much Higher Than Supply
• Negative Sentiment: The strong quarter has not overcome weak sector sentiment: multiple analysts lowered price targets, citing valuation or semiconductor-equipment multiple compression, although most maintained Buy or Overweight ratings. A broader chip-stock sell-off and lingering concerns around AI-related trades have also weighed on the reaction. Analysts cut targets despite strong results

Applied Materials Company Profile

Applied Materials, Inc. develops and supplies equipment, software and services used to manufacture semiconductors and advanced displays. Its technologies help customers build and process materials at the microscopic scale required for chips and other electronic products. The company’s offerings include systems for depositing, removing and modifying materials, as well as inspection, measurement and process-control tools. It also provides equipment and services for advanced semiconductor packaging and supports customers with maintenance, upgrades and manufacturing software.