Applied Materials, Inc. (NASDAQ:AMAT) Receives Average Rating of "Moderate Buy" from Brokerages

Key Points

• Analysts maintain a Moderate Buy consensus on Applied Materials, with 26 buy ratings, eight holds and one strong buy among 35 analysts. The average 12-month price target is approximately $603.23.
• Applied Materials exceeded quarterly expectations, reporting $2.86 in EPS versus the $2.68 consensus and $7.91 billion in revenue versus $7.68 billion expected; revenue rose 11.4% year over year.
• The company declared a quarterly dividend of $0.53 per share, equivalent to a $2.12 annualized payout and a 0.4% yield, while insiders sold roughly $169.7 million of stock over the past 90 days.

Applied Materials, Inc. (NASDAQ:AMAT - Get Free Report) has received an average recommendation of "Moderate Buy" from the thirty-five analysts that are presently covering the company, MarketBeat.com reports. Eight research analysts have rated the stock with a hold recommendation, twenty-six have issued a buy recommendation and one has assigned a strong buy recommendation to the company. The average 12 month target price among analysts that have issued ratings on the stock in the last year is $603.2258.

Several equities research analysts have recently weighed in on AMAT shares. Citigroup reiterated a "buy" rating on shares of Applied Materials in a research report on Monday, August 3rd. HC Wainwright set a $850.00 target price on shares of Applied Materials in a report on Monday, June 29th. The Goldman Sachs Group reaffirmed a "buy" rating and set a $645.00 price target on shares of Applied Materials in a research report on Monday, August 3rd. Morgan Stanley increased their price target on Applied Materials from $502.00 to $647.00 and gave the stock an "equal weight" rating in a report on Monday, July 6th. Finally, Jefferies Financial Group lifted their price objective on Applied Materials from $510.00 to $770.00 and gave the stock a "buy" rating in a research report on Friday, June 26th.

Applied Materials Stock Performance

Shares of AMAT stock opened at $548.15 on Thursday. The stock has a market capitalization of $435.21 billion, a PE ratio of 51.47, a PEG ratio of 1.33 and a beta of 1.61. The business's 50 day simple moving average is $562.41 and its 200 day simple moving average is $442.96. The company has a debt-to-equity ratio of 0.22, a current ratio of 2.51 and a quick ratio of 1.80. Applied Materials has a one year low of $154.46 and a one year high of $739.67.

Applied Materials (NASDAQ:AMAT - Get Free Report) last released its quarterly earnings results on Thursday, May 14th. The manufacturing equipment provider reported $2.86 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.68 by $0.18. The firm had revenue of $7.91 billion during the quarter, compared to analyst estimates of $7.68 billion. Applied Materials had a net margin of 29.31% and a return on equity of 36.97%. The company's revenue was up 11.4% compared to the same quarter last year. During the same quarter last year, the business earned $2.39 EPS. As a group, research analysts forecast that Applied Materials will post 12.22 earnings per share for the current year.

Applied Materials Announces Dividend

The firm 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 (DPR) is currently 19.91%.

Insiders Place Their Bets

In other Applied Materials news, Director Thomas J. Iannotti sold 9,250 shares of the stock in a transaction that occurred on Tuesday, June 16th. The stock was sold at an average price of $599.77, for a total transaction of $5,547,872.50. Following the transaction, the director directly owned 40,559 shares in the company, valued at approximately $24,326,071.43. This represents a 18.57% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, SVP Omkaram Nalamasu sold 24,263 shares of the firm's stock in a transaction that occurred on Tuesday, June 16th. The stock was sold at an average price of $593.43, for a total transaction of $14,398,392.09. Following the sale, the senior vice president directly owned 146,916 shares of the company's stock, valued at approximately $87,184,361.88. This trade represents a 14.17% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 278,088 shares of company stock valued at $169,654,805 in the last 90 days. Company insiders own 0.30% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of AMAT. Cornerstone Financial Management LLC bought a new position in shares of Applied Materials during the 4th quarter worth about $25,000. Wilkerson Advisory Group LLC acquired a new stake in shares of Applied Materials in the 4th quarter valued at about $26,000. Harborfront Financial Group LLC bought a new stake in Applied Materials in the 2nd quarter valued at about $27,000. Financial Freedom LLC acquired a new position in Applied Materials during the 1st quarter worth approximately $28,000. Finally, Joseph Group Capital Management bought a new position in Applied Materials in the fourth quarter worth approximately $31,000. 80.56% of the stock is owned by institutional investors.

Applied Materials News Summary

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

• Positive Sentiment: AI optimism remains the primary bullish catalyst. Applied Materials supplies equipment used to manufacture advanced logic and memory chips, positioning it as a “picks-and-shovels” beneficiary of data-center and AI infrastructure spending. Recent strength across semiconductor stocks and strong results from AI-linked customers are supporting expectations for sustained demand. Applied Materials Stock Enjoying AI Optimism Before Earnings
• Positive Sentiment: Applied Materials announced that UC Berkeley will join its EPIC Center, giving researchers access to industry-scale equipment and process-integration expertise. The partnership could accelerate semiconductor innovation and commercialization, although its financial impact is likely longer term. UC Berkeley to Join Applied Materials’ EPIC Center
• Neutral Sentiment: Analysts expect record quarterly revenue of roughly $9 billion, up about 23% year over year, and earnings per share near $3.39. Investors will also watch gross margins, semiconductor-fabrication equipment orders, China exposure, and management’s outlook for the next quarter. A large post-earnings move is implied by options pricing. Applied Materials Earnings Preview
• Negative Sentiment: Options activity indicates traders are positioned for a potentially downward reaction if results or guidance fail to exceed already-high expectations. The stock’s roughly 25% decline from its June record high and valuation concerns increase the risk of a “sell the news” response, even if the company beats estimates. Barchart Applied Materials Earnings Analysis
• Negative Sentiment: William Blair initiated coverage with a “Market Perform” rating, while another analyst maintained a Hold view, citing AMAT’s strong AI fundamentals but also its valuation and competitive risks. These neutral ratings may limit upside ahead of the earnings catalyst. Analyst Maintains Hold on Applied Materials

About Applied Materials

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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