Mizuho Issues Pessimistic Forecast for Applied Materials (NASDAQ:AMAT) Stock Price

Key Points

• Mizuho lowered Applied Materials’ price target from $650 to $590 while maintaining an “outperform” rating, implying 21.85% upside from the prior close.
• Analyst sentiment remains positive overall, with the stock receiving a “Moderate Buy” consensus rating and an average price target of $657.76, despite differing targets from other firms.
• Applied Materials beat quarterly expectations, reporting $3.50 in EPS and $9.12 billion in revenue, while revenue increased 24.8% year over year. However, insiders sold about $169 million of shares over the past 90 days.

Applied Materials (NASDAQ:AMAT - Get Free Report) had its target price reduced by equities researchers at Mizuho from $650.00 to $590.00 in a report released on Tuesday,Benzinga reports. The brokerage presently has an "outperform" rating on the manufacturing equipment provider's stock. Mizuho's target price would indicate a potential upside of 21.85% from the company's previous close.

Several other research analysts have also recently issued reports on the company. Susquehanna lifted their target price on Applied Materials from $575.00 to $900.00 and gave the company a "positive" rating in a research report on Tuesday, June 30th. Morgan Stanley lowered their price target on Applied Materials from $646.00 to $642.00 and set an "equal weight" rating for the company in a research report on Friday, August 14th. Stifel Nicolaus raised their price objective on Applied Materials from $530.00 to $650.00 and gave the company a "buy" rating in a research note on Friday, July 10th. Cantor Fitzgerald reaffirmed an "overweight" rating on shares of Applied Materials in a report on Friday, August 14th. Finally, Royal Bank Of Canada upped their target price on shares of Applied Materials from $520.00 to $600.00 and gave the stock an "outperform" rating in a research note on Friday, August 14th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-seven have issued a Buy rating and five 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 $657.76.

Applied Materials Price Performance

AMAT stock opened at $484.19 on Tuesday. The firm has a market cap of $384.25 billion, a price-to-earnings ratio of 41.74, a PEG ratio of 1.06 and a beta of 1.61. The company has a quick ratio of 1.79, a current ratio of 2.42 and a debt-to-equity ratio of 0.20. Applied Materials has a 12-month low of $154.46 and a 12-month high of $739.67. The company's fifty day simple moving average is $560.64 and its 200 day simple moving average is $453.08.

Applied Materials (NASDAQ:AMAT - Get Free Report) last posted 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. The firm had revenue of $9.12 billion for the quarter, compared to analysts' expectations of $8.99 billion. Applied Materials had a return on equity of 38.02% and a net margin of 30.05%.The company's revenue for the quarter was up 24.8% compared to the same quarter last year. During the same period in the prior year, the business earned $2.48 EPS. Applied Materials has set its Q4 2026 guidance at 3.820-4.220 EPS. On average, analysts expect that Applied Materials will post 12.73 earnings per share for the current year.

Insider Transactions at Applied Materials

In related news, Director Thomas J. Iannotti sold 9,250 shares of the company's stock in a transaction that occurred on Tuesday, June 16th. The shares were sold at an average price of $599.77, for a total transaction of $5,547,872.50. Following the sale, the director owned 40,559 shares of the company's stock, valued at approximately $24,326,071.43. This represents a 18.57% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, CEO Gary E. Dickerson sold 71,727 shares of the stock in a transaction that occurred on Tuesday, June 16th. The stock was sold at an average price of $593.75, for a total transaction of $42,587,906.25. Following the completion of the sale, the chief executive officer owned 1,695,164 shares in the company, valued at $1,006,503,625. This represents a 4.06% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 276,692 shares of company stock valued at $169,030,834. 0.30% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Applied Materials

A number of institutional investors and hedge funds have recently made changes to their positions in the business. JFS Wealth Advisors LLC raised its holdings in shares of Applied Materials by 4.3% in the 2nd quarter. JFS Wealth Advisors LLC now owns 409 shares of the manufacturing equipment provider's stock valued at $296,000 after acquiring an additional 17 shares in the last quarter. Innovative Asset Advisors Group LLC grew its holdings in shares of Applied Materials by 2.1% during the second quarter. Innovative Asset Advisors Group LLC now owns 961 shares of the manufacturing equipment provider's stock worth $695,000 after purchasing an additional 20 shares in the last quarter. Stonebridge Financial Group LLC increased its position in shares of Applied Materials by 2.1% in the second quarter. Stonebridge Financial Group LLC now owns 1,003 shares of the manufacturing equipment provider's stock worth $725,000 after purchasing an additional 21 shares during the last quarter. N.E.W. Advisory Services LLC increased its position in shares of Applied Materials by 5.9% in the second quarter. N.E.W. Advisory Services LLC now owns 377 shares of the manufacturing equipment provider's stock worth $273,000 after purchasing an additional 21 shares during the last quarter. Finally, IMG Wealth Management Inc. raised its stake in Applied Materials by 13.0% in the second quarter. IMG Wealth Management Inc. now owns 183 shares of the manufacturing equipment provider's stock valued at $132,000 after purchasing an additional 21 shares in the last quarter. Hedge funds and other institutional investors own 80.56% of the company's stock.

Applied Materials Company Profile

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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