Applied Materials (NASDAQ:AMAT) Downgraded to Hold Rating by Summit Insights

Key Points

• Applied Materials' stock received a "hold" rating from Summit Insights, maintaining an average rating of "Moderate Buy" with a target price of $197.24.
• The company reported earnings of $2.48 per share for the last quarter, surpassing expectations, and generated $7.30 billion in revenue, reflecting a 7.7% increase year-over-year.
• Recent institutional trading shows strong interest, with hedge funds holding 80.56% of Applied Materials' stock, indicating significant institutional support for the company.

Summit Insights lowered shares of Applied Materials (NASDAQ:AMAT - Free Report) from a buy rating to a hold rating in a research report released on Friday, Marketbeat.com reports.

A number of other equities analysts have also weighed in on AMAT. The Goldman Sachs Group assumed coverage on shares of Applied Materials in a research report on Thursday, July 10th. They issued a "buy" rating and a $225.00 price objective on the stock. TD Cowen dropped their price target on Applied Materials from $225.00 to $220.00 and set a "buy" rating for the company in a research report on Friday, May 16th. Morgan Stanley raised their price target on Applied Materials from $158.00 to $169.00 and gave the company an "equal weight" rating in a research report on Tuesday, July 1st. UBS Group restated a "neutral" rating and issued a $185.00 price target (up previously from $175.00) on shares of Applied Materials in a research report on Monday, August 4th. Finally, Wells Fargo & Company raised their price target on Applied Materials from $200.00 to $215.00 and gave the company an "overweight" rating in a research report on Tuesday, July 8th. Seventeen research analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $194.84.

Applied Materials Stock Down 0.9%

AMAT stock traded down $1.5060 during midday trading on Friday, reaching $162.0240. 3,959,192 shares of the company were exchanged, compared to its average volume of 7,393,113. The company has a debt-to-equity ratio of 0.29, a quick ratio of 1.76 and a current ratio of 2.46. The company has a market cap of $130.02 billion, a price-to-earnings ratio of 19.26, a price-to-earnings-growth ratio of 1.81 and a beta of 1.70. The stock's 50-day simple moving average is $184.06 and its 200 day simple moving average is $166.42. Applied Materials has a 1-year low of $123.74 and a 1-year high of $215.70.

Applied Materials (NASDAQ:AMAT - Get Free Report) last announced its earnings results on Thursday, August 14th. The manufacturing equipment provider reported $2.48 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.36 by $0.12. The business had revenue of $7.30 billion for the quarter, compared to analyst estimates of $7.21 billion. Applied Materials had a net margin of 23.88% and a return on equity of 41.31%. The company's revenue for the quarter was up 7.7% compared to the same quarter last year. During the same period last year, the firm posted $2.12 earnings per share. Applied Materials has set its Q4 2025 guidance at 1.910-2.310 EPS. On average, equities analysts forecast that Applied Materials will post 9.38 earnings per share for the current year.

Applied Materials Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, September 11th. Investors of record on Thursday, August 21st will be paid a dividend of $0.46 per share. The ex-dividend date of this dividend is Thursday, August 21st. This represents a $1.84 dividend on an annualized basis and a dividend yield of 1.1%. Applied Materials's dividend payout ratio (DPR) is presently 21.93%.

Insider Activity at Applied Materials

In related news, CAO Adam Sanders sold 562 shares of the stock in a transaction on Tuesday, June 24th. The stock was sold at an average price of $178.60, for a total transaction of $100,373.20. Following the sale, the chief accounting officer owned 5,300 shares of the company's stock, valued at $946,580. This trade represents a 9.59% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 0.24% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Applied Materials

Large investors have recently added to or reduced their stakes in the business. Maseco LLP purchased a new position in Applied Materials during the second quarter worth about $30,000. Financial Gravity Companies Inc. purchased a new position in Applied Materials during the second quarter worth about $31,000. Howard Hughes Medical Institute purchased a new position in Applied Materials during the second quarter worth about $32,000. Runnymede Capital Advisors Inc. lifted its position in Applied Materials by 972.2% during the first quarter. Runnymede Capital Advisors Inc. now owns 193 shares of the manufacturing equipment provider's stock worth $28,000 after buying an additional 175 shares during the period. Finally, Kilter Group LLC purchased a new position in Applied Materials during the second quarter worth about $36,000. 80.56% of the stock is currently owned by hedge funds and other institutional investors.

Applied Materials Company Profile

Applied Materials, Inc engages in the provision of manufacturing equipment, services, and software to the semiconductor, display, and related industries. The company operates through three segments: Semiconductor Systems, Applied Global Services, and Display and Adjacent Markets. The Semiconductor Systems segment develops, manufactures, and sells various manufacturing equipment that is used to fabricate semiconductor chips or integrated circuits.