Applied Materials (NASDAQ:AMAT) Given New $500.00 Price Target at TD Cowen

Key Points

• TD Cowen cut Applied Materials’ price target from $700 to $500 but maintained a Buy rating; the new target implies 37.17% upside from the prior close.
• Analyst sentiment remains broadly positive: MarketBeat reports a Moderate Buy consensus and an average price target of $604.09, with 29 Buy and 10 Hold ratings.
• Applied Materials beat quarterly earnings and revenue estimates, reporting EPS of $4.16 versus $4.06 expected and revenue of $10.41 billion versus $10.30 billion.

Applied Materials (NASDAQ:AMAT - Get Free Report) had its price target cut by stock analysts at TD Cowen from $700.00 to $500.00 in a note issued to investors on Friday, Benzinga reports. The brokerage currently has a "buy" rating on the manufacturing equipment provider's stock. TD Cowen's price objective would indicate a potential upside of 37.17% from the company's previous close.

Other analysts also recently issued reports about the company. JPMorgan Chase & Co. lifted their price target on Applied Materials from $515.00 to $660.00 and gave the stock an "overweight" rating in a report on Friday, August 14th. Stifel Nicolaus dropped their price objective on shares of Applied Materials from $650.00 to $600.00 and set a "buy" rating for the company in a report on Friday. Weiss Ratings cut shares of Applied Materials from a "buy (b)" rating to a "buy (b-)" rating in a research report on Wednesday, September 9th. Berenberg Bank lifted their target price on shares of Applied Materials from $575.00 to $675.00 and gave the stock a "buy" rating in a research note on Monday, August 17th. Finally, UBS Group lifted their target price on shares of Applied Materials from $675.00 to $695.00 and gave the stock a "buy" rating in a research note on Tuesday, September 1st. Twenty-nine investment analysts have rated the stock with a Buy rating and ten have given a Hold rating to the stock. According to MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $604.09.

Applied Materials Trading Down 4.3%

AMAT opened at $364.50 on Friday. The firm has a market capitalization of $289.27 billion, a price-to-earnings ratio of 31.98, a price-to-earnings-growth ratio of 0.77 and a beta of 1.67. The company's 50 day simple moving average is $439.22 and its two-hundred day simple moving average is $445.83. 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.

Applied Materials (NASDAQ:AMAT - Get Free Report) last posted its quarterly earnings results on Thursday, November 12th. The manufacturing equipment provider reported $4.16 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $4.06 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 $10.41 billion during the quarter, compared to analyst estimates of $10.30 billion. During the same period in the prior year, the business earned $2.17 earnings per share. Applied Materials has set its Q1 2027 guidance at 4.150-4.550 EPS. Analysts expect that Applied Materials will post 12.79 EPS for the current fiscal year.

Insider Activity

In related news, CAO Adam Sanders sold 725 shares of the business's stock in a transaction on Friday, October 2nd. The shares were sold at an average price of $544.56, for a total transaction of $394,806.00. Following the completion of the transaction, the chief accounting officer owned 3,181 shares in the company, valued at approximately $1,732,245.36. The trade was a 18.56% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Judy Bruner sold 1,000 shares of the company's stock in a transaction dated Tuesday, September 8th. The stock was sold at an average price of $465.00, for a total value of $465,000.00. Following the transaction, the director directly owned 25,544 shares of the company's stock, valued at approximately $11,877,960. This represents a 3.77% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 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 hedge funds have recently modified their holdings of AMAT. Harborfront Financial Group LLC acquired a new position in shares of Applied Materials in the 2nd quarter valued at $27,000. Curry Webb Wealth Management LLC purchased a new stake in shares of Applied Materials during the 3rd quarter worth $30,000. Dakota Community Bank & Trust NA purchased a new stake in Applied Materials during the third quarter worth about $31,000. Orion Capital Management LLC acquired a new stake in shares of Applied Materials in the 2nd quarter worth approximately $33,000. Finally, Highland Investment Advisors LLC purchased a new position in shares of Applied Materials in the second quarter valued at $33,000. 80.56% of the stock is owned by hedge funds and other institutional investors.

Latest Applied Materials News

Investors following AMAT have been watching these news items:

• Positive Sentiment: Management said chip demand remains well above supply, with customers seeking earlier equipment deliveries. Strong AI, memory and advanced-packaging demand supports the growth outlook, though component and clean-room capacity limit how quickly Applied can ship. Applied Materials Says Chip Demand Remains Much Higher Than Supply
• Neutral Sentiment: Applied expects shipments to China to account for less than a quarter of its business in 2027. That would reduce reliance on a market exposed to export restrictions, but China remains a concern for investors. Applied Materials stock information
• Negative Sentiment: Several analysts cut price targets, including Bank of America ($650 to $520) and Needham ($580 to $470), although both maintained Buy ratings. Summit Insights also downgraded AMAT from Buy to Hold. These moves may signal reduced expectations and add pressure after the earnings announcement. Bank of America analyst rating

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.

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