Applied Materials, Inc. (NASDAQ:AMAT) Given Average Recommendation of "Moderate Buy" by Brokerages

Key Points

• Applied Materials has a consensus analyst rating of “Moderate Buy” from 35 analysts, with 27 buy ratings and an average 1-year price target of about $470.13.
• Several firms recently raised their outlooks, including Cantor Fitzgerald, JPMorgan, Mizuho, and Jefferies, while news coverage continues to highlight strong quarterly results and AI-related semiconductor demand.
• The company posted better-than-expected earnings and revenue, raised its quarterly dividend to $0.53 per share, though there were also some recent insider stock sales by executives and a director.

Shares of Applied Materials, Inc. (NASDAQ:AMAT - Get Free Report) have been assigned a consensus rating of "Moderate Buy" from the thirty-five analysts that are covering the firm, Marketbeat Ratings reports. Eight investment analysts have rated the stock with a hold recommendation and twenty-seven have given a buy recommendation to the company. The average 1-year price target among brokers that have issued a report on the stock in the last year is $470.1333.

A number of analysts recently commented on AMAT shares. KGI Securities upgraded shares of Applied Materials to an "outperform" rating and set a $425.00 price objective for the company in a research report on Friday, February 13th. JPMorgan Chase & Co. upped their price objective on shares of Applied Materials from $400.00 to $515.00 and gave the company an "overweight" rating in a research report on Friday, May 15th. Stifel Nicolaus set a $530.00 price objective on shares of Applied Materials in a research report on Friday, May 15th. Mizuho upped their price objective on shares of Applied Materials from $500.00 to $540.00 and gave the company an "outperform" rating in a research report on Wednesday. Finally, Jefferies Financial Group upped their price objective on shares of Applied Materials from $415.00 to $510.00 and gave the company a "buy" rating in a research report on Friday, May 15th.

Insiders Place Their Bets

In related news, CAO Adam Sanders sold 268 shares of the company's stock in a transaction on Friday, May 22nd. The shares were sold at an average price of $434.22, for a total value of $116,370.96. Following the completion of the sale, the chief accounting officer owned 4,280 shares in the company, valued at $1,858,461.60. This represents a 5.89% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, Director Judy Bruner sold 1,128 shares of the stock in a transaction dated Tuesday, May 26th. The stock was sold at an average price of $450.00, for a total value of $507,600.00. Following the transaction, the director owned 26,544 shares of the company's stock, valued at approximately $11,944,800. This trade represents a 4.08% decrease in their position. The disclosure for this sale is available in the SEC filing. 0.30% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Applied Materials

Large investors have recently added to or reduced their stakes in the company. First Trust Advisors LP boosted its stake in shares of Applied Materials by 4.9% during the 3rd quarter. First Trust Advisors LP now owns 3,101,772 shares of the manufacturing equipment provider's stock worth $635,057,000 after buying an additional 145,050 shares during the last quarter. Canada Post Corp Registered Pension Plan boosted its stake in shares of Applied Materials by 82.2% during the 3rd quarter. Canada Post Corp Registered Pension Plan now owns 26,893 shares of the manufacturing equipment provider's stock worth $5,512,000 after buying an additional 12,132 shares during the last quarter. Elo Mutual Pension Insurance Co boosted its stake in shares of Applied Materials by 21.8% during the 3rd quarter. Elo Mutual Pension Insurance Co now owns 96,712 shares of the manufacturing equipment provider's stock worth $19,801,000 after buying an additional 17,288 shares during the last quarter. Worth Asset Management LLC acquired a new position in shares of Applied Materials during the 4th quarter worth about $1,531,000. Finally, World Investment Advisors boosted its stake in shares of Applied Materials by 4.5% during the 4th quarter. World Investment Advisors now owns 82,296 shares of the manufacturing equipment provider's stock worth $21,149,000 after buying an additional 3,508 shares during the last quarter. Institutional investors own 80.56% of the company's stock.

Key Stories Impacting Applied Materials

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

• Positive Sentiment: Cantor Fitzgerald reaffirmed its Overweight rating on Applied Materials and raised its price target to $575, reinforcing bullish analyst sentiment and pointing to more upside potential. Applied Materials NASDAQ: AMAT Receives Overweight Rating from Cantor Fitzgerald
• Positive Sentiment: Recent coverage highlights AMAT’s blowout quarterly results, higher outlook, and new AI chip equipment partnerships with companies like Broadcom and SCREEN, all of which support expectations for continued demand in semiconductor manufacturing equipment. Assessing Applied Materials (AMAT) Valuation After Earnings Beat And New AI Chip Equipment Partnerships
• Positive Sentiment: CEO Gary Dickerson said the semiconductor industry is in its strongest period ever, with AI driving unprecedented computing demand, which adds to the long-term growth narrative for Applied Materials. This is the greatest time ever for semiconductors, says CEO of key equipment supplier
• Positive Sentiment: AMAT continues to attract bullish commentary from analysts and market commentators as a leading AI semiconductor equipment play, helping sustain momentum in the shares. KLA vs. Applied Materials: Which Chip Equipment Stock Wins Now?
• Neutral Sentiment: The company also presented at Bernstein’s Strategic Decisions Conference, which kept investors focused on management’s outlook but did not add a major new catalyst. Applied Materials, Inc. (AMAT) Presents at Bernstein 42nd Annual Strategic Decisions Conference Transcript
• Negative Sentiment: Recent insider selling by Director Judy Bruner may create a modest headwind, though the sale was small relative to her remaining stake and does not appear to change the broader bullish thesis. Applied Materials director Judy Bruner stock sale

Applied Materials Stock Performance

Shares of Applied Materials stock opened at $450.06 on Friday. The firm has a fifty day moving average of $397.25 and a two-hundred day moving average of $333.49. The stock has a market capitalization of $357.33 billion, a price-to-earnings ratio of 42.26, a PEG ratio of 1.26 and a beta of 1.66. Applied Materials has a 52 week low of $153.47 and a 52 week high of $462.40. 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 (NASDAQ:AMAT - Get Free Report) last issued its earnings results on Thursday, May 14th. The manufacturing equipment provider reported $2.86 EPS for the quarter, beating the consensus estimate of $2.68 by $0.18. Applied Materials had a net margin of 29.31% and a return on equity of 36.97%. The company had revenue of $7.91 billion during the quarter, compared to analysts' expectations of $7.68 billion. During the same quarter in the previous year, the company posted $2.39 EPS. The business's revenue for the quarter was up 11.4% compared to the same quarter last year. Applied Materials has set its Q3 2026 guidance at 3.160-3.560 EPS. As a group, equities research analysts predict that Applied Materials will post 12.02 EPS for the current year.

Applied Materials Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, June 11th. Investors of record on Thursday, May 21st will be given a $0.53 dividend. The ex-dividend date is Thursday, May 21st. This represents a $2.12 dividend on an annualized basis and a dividend yield of 0.5%. This is an increase from Applied Materials's previous quarterly dividend of $0.46. Applied Materials's dividend payout ratio is currently 19.91%.

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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