Applied Materials (NASDAQ:AMAT) Downgraded by Zacks Research to Hold

Key Points

• Zacks Research downgraded Applied Materials from "strong-buy" to "hold," but analyst sentiment remains largely positive with 27 Buy vs. 7 Hold ratings and a consensus "Moderate Buy" average price target of $368.29.
• Recent results beat expectations: Q1 EPS was $2.38 (vs. $2.21 est.) and revenue was $7.01B (vs. $6.88B), with Q2 guidance of $2.440–2.840; the stock trades around $381 with a market cap of $302.5B and a PE of ~39.
• Near-term negatives include U.S. export restrictions affecting shipments to China's Hua Hong and broader semiconductor-sector volatility, while insiders have sold 12,003 shares (~$4.48M) over the last 90 days and own 0.30% of the stock.

Applied Materials (NASDAQ:AMAT - Get Free Report) was downgraded by equities researchers at Zacks Research from a "strong-buy" rating to a "hold" rating in a note issued to investors on Monday,Zacks.com reports.

Several other analysts have also recently issued reports on the stock. Needham & Company LLC increased their target price on shares of Applied Materials from $390.00 to $440.00 and gave the stock a "buy" rating in a research note on Friday, February 13th. Wells Fargo & Company increased their target price on shares of Applied Materials from $350.00 to $435.00 and gave the stock an "overweight" rating in a research note on Friday, February 13th. Stifel Nicolaus increased their target price on shares of Applied Materials from $340.00 to $450.00 and gave the stock a "buy" rating in a research note on Friday, February 13th. UBS Group set a $430.00 target price on shares of Applied Materials in a research note on Friday, February 13th. Finally, DZ Bank upgraded shares of Applied Materials to a "hold" rating in a research note on Monday, February 16th. Twenty-seven analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company. According to MarketBeat, Applied Materials has a consensus rating of "Moderate Buy" and an average price target of $368.29.

Applied Materials Stock Performance

NASDAQ AMAT opened at $381.17 on Monday. Applied Materials has a 1 year low of $144.71 and a 1 year high of $420.50. The company has a debt-to-equity ratio of 0.30, a current ratio of 2.71 and a quick ratio of 1.94. The stock has a market capitalization of $302.50 billion, a PE ratio of 39.01, a P/E/G ratio of 1.81 and a beta of 1.64. The company's 50 day simple moving average is $367.88 and its two-hundred day simple moving average is $304.78.

Applied Materials (NASDAQ:AMAT - Get Free Report) last posted its earnings results on Thursday, February 12th. The manufacturing equipment provider reported $2.38 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.21 by $0.17. Applied Materials had a net margin of 27.78% and a return on equity of 37.52%. The business had revenue of $7.01 billion for the quarter, compared to analysts' expectations of $6.88 billion. During the same period in the prior year, the company posted $2.38 EPS. The business's revenue for the quarter was down 2.1% compared to the same quarter last year. Applied Materials has set its Q2 2026 guidance at 2.440-2.840 EPS. Analysts predict that Applied Materials will post 11.1 earnings per share for the current fiscal year.

Insider Activity at Applied Materials

In related news, CFO Brice Hill sold 5,000 shares of the stock in a transaction on Tuesday, February 17th. The stock was sold at an average price of $361.21, for a total value of $1,806,050.00. Following the transaction, the chief financial officer owned 138,565 shares of the company's stock, valued at $50,051,063.65. This represents a 3.48% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Judy Bruner sold 3,969 shares of the stock in a transaction on Monday, February 23rd. The shares were sold at an average price of $377.02, for a total value of $1,496,392.38. Following the completion of the transaction, the director directly owned 28,589 shares in the company, valued at approximately $10,778,624.78. This represents a 12.19% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 12,003 shares of company stock valued at $4,484,189 over the last 90 days. 0.30% of the stock is owned by insiders.

Hedge Funds Weigh In On Applied Materials

A number of large investors have recently added to or reduced their stakes in AMAT. Cornerstone Financial Management LLC purchased a new position in Applied Materials in the 4th quarter worth $25,000. Marquette Asset Management LLC raised its position in Applied Materials by 150.0% in the 3rd quarter. Marquette Asset Management LLC now owns 125 shares of the manufacturing equipment provider's stock worth $26,000 after purchasing an additional 75 shares during the period. Redmont Wealth Advisors LLC purchased a new position in Applied Materials in the 3rd quarter worth $26,000. Wilkerson Advisory Group LLC purchased a new position in Applied Materials in the 4th quarter worth $26,000. Finally, Highline Wealth Partners LLC raised its position in Applied Materials by 48.7% in the 4th quarter. Highline Wealth Partners LLC now owns 116 shares of the manufacturing equipment provider's stock worth $30,000 after purchasing an additional 38 shares during the period. Hedge funds and other institutional investors own 80.56% of the company's stock.

Trending Headlines about Applied Materials

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

• Positive Sentiment: B. Riley expresses a more optimistic outlook for semiconductor capital spending and is bullish on Applied’s positioning, providing a near-term analyst tailwind that could support the stock if capex demand reaccelerates. B. Riley Bullish on Applied Materials (AMAT); Sees Better Outlook for Semiconductor Capital Spending
• Positive Sentiment: Strategic partnership news — Advantest joining Applied’s EPIC platform and opening an Innovation Center — strengthens Applied’s ecosystem play across front-end process and back-end test, a structural positive for long-term revenue and differentiation. Is Advantest’s EPIC Tie-Up Reshaping the Long-Term Investment Case for Applied Materials (AMAT)?
• Neutral Sentiment: Broker commentary remains generally constructive (average brokerage recommendations and a recent Erste upgrade), which supports conviction among longer-term investors even as headlines create volatility. Brokers Suggest Investing in Applied Materials (AMAT): Read This Before Placing a Bet
• Negative Sentiment: U.S. Commerce Department ordered chip-equipment firms to halt some shipments to China’s Hua Hong, and Applied was among companies receiving restriction letters — a direct near-term revenue risk for tools sales into China. U.S. halts chip equipment shipments to China's Hua Hong
• Negative Sentiment: Broader semiconductor sell-off (spurred by reports that OpenAI missed growth targets and sector rotation) is weighing on AMAT alongside peers, amplifying volatility and driving short-term downside. What Is Going On With Applied Materials Stock On Tuesday?
• Negative Sentiment: Macro risk: Middle East tensions pushed oil higher and contributed to risk-off trading that pressured tech and chip stocks broadly. US Equity Markets End Lower as Chipmakers Slide, Middle East Tensions Lift Oil

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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