Applied Materials (NASDAQ:AMAT) Given Buy Rating at Needham & Company LLC

by · The Markets Daily

Applied Materials (NASDAQ:AMAT – Get Free Report)‘s stock had its “buy” rating reiterated by research analysts at Needham & Company LLC in a report issued on Friday,Benzinga reports. They presently have a $740.00 price objective on the manufacturing equipment provider’s stock. Needham & Company LLC’s target price would indicate a potential upside of 38.44% from the company’s previous close.

Other equities research analysts have also issued research reports about the stock. The Goldman Sachs Group reissued a “buy” rating and set a $645.00 price objective on shares of Applied Materials in a research note on Monday, August 3rd. Mizuho lifted their target price on shares of Applied Materials from $540.00 to $650.00 and gave the company an “outperform” rating in a report on Wednesday, July 8th. HC Wainwright set a $850.00 price target on Applied Materials in a research report on Monday, June 29th. Raymond James Financial set a $650.00 price target on Applied Materials in a research note on Wednesday, June 10th. Finally, Wolfe Research raised their price objective on Applied Materials from $500.00 to $550.00 and gave the company an “outperform” rating in a research report on Friday, May 15th. One investment analyst has rated the stock with a Strong Buy rating, twenty-six have issued a Buy rating and eight have given a Hold rating to the company’s stock. According to data from MarketBeat, Applied Materials currently has an average rating of “Moderate Buy” and an average target price of $600.00.

Get Our Latest Analysis on Applied Materials

Applied Materials Stock Down 2.5%

Shares of NASDAQ:AMAT opened at $534.54 on Friday. The firm has a market capitalization of $424.40 billion, a P/E ratio of 50.19, a P/E/G ratio of 1.38 and a beta of 1.61. The company has a debt-to-equity ratio of 0.22, a quick ratio of 1.80 and a current ratio of 2.51. The stock has a 50 day moving average price of $563.06 and a 200-day moving average price of $444.45. Applied Materials has a 52-week low of $154.46 and a 52-week high of $739.67.

Applied Materials (NASDAQ:AMAT – Get Free Report) last posted its quarterly earnings data on Thursday, August 13th. The manufacturing equipment provider reported $3.50 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $3.40 by $0.10. Applied Materials had a return on equity of 36.97% and a net margin of 29.31%.The business had revenue of $9.12 billion during the quarter, compared to the consensus estimate of $8.99 billion. During the same quarter in the prior year, the company earned $2.48 earnings per share. The firm’s quarterly 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. As a group, equities research analysts anticipate that Applied Materials will post 12.22 EPS for the current fiscal year.

Insider Buying and Selling

In related news, CEO Gary E. Dickerson sold 71,727 shares of the company’s stock in a transaction that occurred 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 of the company’s stock, valued at approximately $1,006,503,625. This represents a 4.06% decrease in their position. The transaction 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 stock was sold at an average price of $590.76, for a total value of $5,092,941.96. Following the completion of the sale, the senior vice president directly owned 134,631 shares of the company’s stock, valued at approximately $79,534,609.56. The trade was a 6.02% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 278,088 shares of company stock worth $169,654,805 over the last 90 days. 0.30% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Applied Materials

Several hedge funds and other institutional investors have recently modified their holdings of the company. Verity Asset Management Inc. purchased a new stake in shares of Applied Materials in the 2nd quarter worth $316,000. Park Place Capital Corp boosted its stake in Applied Materials by 340.1% in the 2nd quarter. Park Place Capital Corp now owns 5,977 shares of the manufacturing equipment provider’s stock worth $4,321,000 after purchasing an additional 4,619 shares during the period. Peak Asset Management LLC grew its holdings in Applied Materials by 29.8% during the 2nd quarter. Peak Asset Management LLC now owns 15,352 shares of the manufacturing equipment provider’s stock valued at $11,100,000 after buying an additional 3,521 shares in the last quarter. Fiduciary Financial Advisors purchased a new stake in Applied Materials during the 2nd quarter valued at approximately $757,000. Finally, Vega Investment Solutions bought a new stake in shares of Applied Materials during the second quarter valued at approximately $22,681,000. 80.56% of the stock is owned by institutional investors.

More Applied Materials News

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

  • Positive Sentiment: Applied Materials reported record fiscal third-quarter revenue of $9.12 billion, up 24.8% year over year, while adjusted EPS of $3.50 exceeded the $3.40 consensus estimate. Applied Materials Announces Third Quarter 2026 Results
  • Positive Sentiment: Management issued fourth-quarter guidance above Wall Street expectations, calling for revenue of approximately $9.8 billion to $10.8 billion and EPS of $3.82 to $4.22, supported by sustained AI-related semiconductor equipment demand. Applied Materials forecasts quarterly revenue above estimates
  • Positive Sentiment: Non-GAAP gross margin reached a record 50.4%, and the company said AI infrastructure spending is providing unusually strong visibility into demand. Applied Materials also plans to double quarterly DRAM equipment production capacity by 2028, signaling confidence in memory investment. Applied Materials Sees Another Record Year in 2027
  • Neutral Sentiment: Broader market conditions were mixed, with technology indexes firm but uncertainty surrounding geopolitics and concerns that the semiconductor cycle may be approaching a peak. Stock Market Today
  • Negative Sentiment: Investors appear to have expected an even stronger outlook after AMAT’s substantial run. At roughly 50 times earnings, the stock has limited room for an ordinary beat, while intensifying competition is raising questions about the pace and durability of future growth. Applied Materials slips as investors seek faster growth
  • Negative Sentiment: Some reports also highlighted a GAAP EPS shortfall relative to the market’s “whisper” expectations and an investment loss, adding to the cautious reaction despite the adjusted earnings and revenue beats. Applied Materials Stock Drops Despite Strong Q3 Beat

Applied Materials Company Profile

(Get Free Report)

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.

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