Applied Materials (NASDAQ:AMAT) Upgraded to Buy at Wall Street Zen

by · The Markets Daily

Wall Street Zen upgraded shares of Applied Materials (NASDAQ:AMAT – Free Report) from a hold rating to a buy rating in a research note issued to investors on Saturday.

A number of other equities analysts also recently weighed in on the stock. Barclays lifted their target price on shares of Applied Materials from $500.00 to $590.00 and gave the stock an “overweight” rating in a research note on Thursday, June 11th. Wolfe Research upped their price target on shares of Applied Materials from $500.00 to $550.00 and gave the company an “outperform” rating in a research report on Friday, May 15th. Raymond James Financial set a $650.00 price target on Applied Materials in a report on Wednesday, June 10th. Truist Financial set a $575.00 price objective on Applied Materials in a research report on Thursday, May 28th. Finally, Jefferies Financial Group boosted their price objective on Applied Materials from $510.00 to $770.00 and gave the company a “buy” rating in a research note on Friday, June 26th. One analyst has rated the stock with a Strong Buy rating, twenty-seven have given a Buy rating and six have assigned a Hold rating to the company. According to MarketBeat, Applied Materials currently has an average rating of “Moderate Buy” and an average price target of $640.17.

Get Our Latest Stock Report on AMAT

Applied Materials Stock Down 5.1%

Applied Materials stock opened at $507.18 on Friday. The company has a debt-to-equity ratio of 0.22, a quick ratio of 1.80 and a current ratio of 2.51. Applied Materials has a 52-week low of $154.46 and a 52-week high of $739.67. The firm has a 50 day moving average price of $564.15 and a two-hundred day moving average price of $444.89. The firm has a market cap of $402.68 billion, a price-to-earnings ratio of 43.72, a PEG ratio of 1.28 and a beta of 1.61.

Applied Materials (NASDAQ:AMAT – Get Free Report) last issued its quarterly earnings results 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 net margin of 30.05% and a return on equity of 39.58%. The firm had revenue of $9.12 billion for the quarter, compared to the consensus estimate of $8.99 billion. During the same quarter in the previous year, the company earned $2.48 EPS. The company’s revenue for the quarter was up 24.8% on a year-over-year basis. Applied Materials has set its Q4 2026 guidance at 3.820-4.220 EPS. Equities analysts predict that Applied Materials will post 12.48 EPS for the current year.

Applied Materials Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Thursday, August 20th will be paid 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 yield of 0.4%. Applied Materials’s dividend payout ratio is currently 19.91%.

Insiders Place Their Bets

In other Applied Materials news, SVP Omkaram Nalamasu sold 24,263 shares of Applied Materials stock in a transaction on Tuesday, June 16th. The shares were sold at an average price of $593.43, for a total value of $14,398,392.09. Following the completion of the sale, the senior vice president directly owned 146,916 shares of the company’s stock, valued at approximately $87,184,361.88. The trade was a 14.17% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider Prabu G. Raja sold 10,000 shares of Applied Materials stock in a transaction on Thursday, June 18th. The shares were sold at an average price of $633.53, for a total transaction of $6,335,300.00. Following the completion of the sale, the insider directly owned 346,642 shares of the company’s stock, valued at approximately $219,608,106.26. This trade represents a 2.80% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders sold 278,088 shares of company stock valued at $169,654,805. 0.30% of the stock is currently owned by corporate insiders.

Institutional Trading of Applied Materials

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Cornerstone Financial Management LLC bought a new position in Applied Materials in the fourth quarter worth approximately $25,000. Wilkerson Advisory Group LLC bought a new stake in shares of Applied Materials during the fourth quarter valued at approximately $26,000. Harborfront Financial Group LLC bought a new stake in shares of Applied Materials during the second quarter valued at approximately $27,000. Financial Freedom LLC acquired a new position in shares of Applied Materials during the first quarter worth approximately $28,000. Finally, Joseph Group Capital Management acquired a new position in shares of Applied Materials during the fourth quarter worth approximately $31,000. 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: Record quarterly performance: Fiscal Q3 revenue rose 24.8% year over year to $9.12 billion, ahead of the $8.99 billion consensus estimate, while adjusted EPS of $3.50 exceeded expectations. AI infrastructure demand, advanced packaging and memory spending supported growth. Applied Materials Q3 Earnings Beat Estimates, Revenues Rise Y/Y
  • Positive Sentiment: Above-consensus outlook: Management projected fiscal Q4 revenue of approximately $9.8 billion to $10.8 billion and EPS of $3.82 to $4.22, both above analyst expectations. The company also pointed to stronger systems growth and unusually long customer visibility into fiscal 2027 and beyond. Applied Materials Forecasts Quarterly Revenue Above Estimates
  • Positive Sentiment: Analyst and institutional support: JPMorgan, RBC, TD Cowen, B. Riley, Needham and other firms maintained positive ratings or raised price targets. Soros Capital also reportedly added AMAT among several semiconductor positions, reinforcing the longer-term AI and chip-cycle investment case. Soros Capital Loads Up on Semiconductor Stocks
  • Neutral Sentiment: Options imply a possible rebound: Derivatives-market data indicates traders expect the pullback could be temporary, although elevated volatility reflects uncertainty over the stock’s near-term direction. Applied Materials Options Data
  • Negative Sentiment: Expectations were exceptionally high: Despite the earnings beat and upbeat guidance, investors wanted faster growth and clearer evidence that AMAT is outpacing rivals in semiconductor manufacturing equipment. Concerns about competition, margins and the pace of systems growth overshadowed the headline results. Applied Materials Slips as Investors Seek Faster Growth
  • Negative Sentiment: Broader market pressure added to selling: Weaker July retail-sales data, profit-taking after record highs and a semiconductor-sector selloff weighed on AMAT and other AI-related stocks.

About Applied Materials

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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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