Applied Materials (NASDAQ:AMAT) Rating Lowered to Hold at Summit Insights

Key Points

• Summit Insights downgraded Applied Materials from “Buy” to “Hold.” Analyst sentiment overall remains positive: 29 analysts rate the stock Buy and 10 Hold, with a “Moderate Buy” consensus and a $618.53 average target price.
• Applied Materials reported quarterly EPS of $4.16 and revenue of $10.41 billion, beating analyst estimates of $4.06 and $10.30 billion, respectively.
• The company forecast fiscal Q1 2027 EPS of $4.15–$4.55 and revenue of $10.6–$11.6 billion; management cited AI-chip demand as a growth driver, while component sourcing and clean-room capacity constrain shipments.

Applied Materials (NASDAQ:AMAT - Get Free Report) was downgraded by equities research analysts at Summit Insights from a "buy" rating to a "hold" rating in a research report issued on Friday, Briefing.com reports.

Other equities research analysts have also issued reports about the stock. HSBC reduced their price objective on shares of Applied Materials from $683.00 to $641.00 and set a "buy" rating on the stock in a research note on Friday, August 14th. Cantor Fitzgerald reissued an "overweight" rating on shares of Applied Materials in a research note on Tuesday, October 20th. Erste Group Bank lowered shares of Applied Materials from a "buy" rating to a "hold" rating in a report on Wednesday, August 5th. Royal Bank Of Canada reaffirmed an "outperform" rating and set a $600.00 price target on shares of Applied Materials in a research report on Wednesday, October 14th. Finally, B. Riley Financial cut their price target on shares of Applied Materials from $700.00 to $475.00 and set a "buy" rating on the stock in a research report on Monday. Twenty-nine research analysts have rated the stock with a Buy rating and ten have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $618.53.

Applied Materials Stock Performance

Shares of AMAT stock opened at $380.95 on Friday. The stock has a market capitalization of $302.32 billion, a PE ratio of 32.84, a PEG ratio of 0.77 and a beta of 1.67. The business's 50 day simple moving average is $439.22 and its 200 day simple moving average is $445.83. 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 has a one year low of $203.40 and a one year high of $739.67.

Applied Materials (NASDAQ:AMAT - Get Free Report) last released its quarterly earnings results on Thursday, November 12th. The manufacturing equipment provider reported $4.16 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.06 by $0.10. Applied Materials had a net margin of 30.05% and a return on equity of 38.02%. The firm had revenue of $10.41 billion during the quarter, compared to analyst estimates of $10.30 billion. During the same quarter last year, the business earned $2.17 EPS. Applied Materials has set its Q1 2027 guidance at 4.150-4.550 EPS. As a group, research analysts forecast that Applied Materials will post 12.79 earnings per share for the current year.

Insider Transactions at Applied Materials

In other news, CAO Adam Sanders sold 725 shares of the firm's stock in a transaction that occurred 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 sale, the chief accounting officer owned 3,181 shares of the company's stock, valued at $1,732,245.36. This trade represents a 18.56% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this link. 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 Applied Materials stock in a transaction on Tuesday, September 8th. The shares were sold at an average price of $465.00, for a total transaction of $465,000.00. Following the completion of the sale, the director owned 25,544 shares of the company's stock, valued at $11,877,960. This represents a 3.77% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 9,225 shares of company stock valued at $4,454,181 in the last quarter. 0.30% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Applied Materials

A number of large investors have recently bought and sold shares of the stock. Harborfront Financial Group LLC acquired a new position in shares of Applied Materials during the second quarter valued at about $27,000. Curry Webb Wealth Management LLC bought a new position in shares of Applied Materials during the 3rd quarter worth about $30,000. Dakota Community Bank & Trust NA bought a new position in shares of Applied Materials during the 3rd quarter worth about $31,000. Orion Capital Management LLC bought a new position in shares of Applied Materials during the 2nd quarter worth about $33,000. Finally, Highland Investment Advisors LLC acquired a new stake in shares of Applied Materials in the 2nd quarter valued at about $33,000. 80.56% of the stock is currently owned by institutional investors and hedge funds.

Key Applied Materials News

Here's some of the latest news about AMAT:

• Positive Sentiment: Fiscal Q4 revenue reached a record $10.41 billion, up 53% year over year, while adjusted EPS of $4.16 topped the $4.06 consensus. The company also reported record annual revenue and higher margins. Applied Materials Announces Fourth Quarter and Fiscal Year 2026 Results
• Positive Sentiment: Q1 fiscal 2027 guidance was strong: revenue of $10.6 billion–$11.6 billion and EPS of $4.15–$4.55, with the revenue range above analysts’ expectations. Management expects AI-chip demand to support further growth and says Applied Materials could outgrow the wafer-fab equipment market again in 2027. Applied Materials forecasts quarterly revenue above estimates
• Neutral Sentiment: Management said customer demand is strong, with some customers seeking earlier deliveries, but component sourcing and clean-room capacity limit how quickly the company can ship. China is expected to represent less than a quarter of shipments in 2027, reducing exposure but leaving export restrictions a consideration. Applied Materials earnings and outlook coverage

About Applied Materials

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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