Applied Materials (NASDAQ:AMAT) Rating Lowered to Hold at Wall Street Zen

Key Points

• Wall Street Zen downgraded Applied Materials from “Buy” to “Hold,” although broader analyst sentiment remains positive with a “Moderate Buy” consensus and a $599.19 average price target.
• Applied Materials recently exceeded quarterly expectations, reporting $2.86 in EPS versus $2.68 expected and $7.91 billion in revenue, up 11.4% year over year; analysts expect $12.14 in EPS for the current year.
• Insiders sold 278,088 shares worth approximately $169.7 million during the last quarter, while institutional investors continue to own a substantial 80.56% of the company.

Applied Materials (NASDAQ:AMAT - Get Free Report) was downgraded by equities research analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a report released on Saturday.

AMAT has been the topic of a number of other research reports. Erste Group Bank raised Applied Materials from a "hold" rating to a "buy" rating in a research report on Monday, April 27th. Zacks Research upgraded Applied Materials from a "hold" rating to a "strong-buy" rating in a research note on Wednesday, July 1st. Truist Financial set a $575.00 target price on shares of Applied Materials in a research note on Thursday, May 28th. Needham & Company LLC boosted their price target on shares of Applied Materials from $530.00 to $740.00 and gave the company a "buy" rating in a research report on Friday, July 10th. Finally, Barclays upped their price target on shares of Applied Materials from $500.00 to $590.00 and gave the company an "overweight" rating in a research note on Thursday, June 11th. One analyst has rated the stock with a Strong Buy rating, twenty-seven have assigned a Buy rating and six have assigned a Hold rating to the company. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $599.19.

Applied Materials Stock Up 1.2%

AMAT opened at $507.67 on Friday. The company has a quick ratio of 1.80, a current ratio of 2.51 and a debt-to-equity ratio of 0.22. The stock has a market cap of $403.07 billion, a price-to-earnings ratio of 47.67, a PEG ratio of 1.27 and a beta of 1.57. Applied Materials has a twelve month low of $154.46 and a twelve month high of $739.67. The company's 50-day moving average price is $550.86 and its two-hundred day moving average price is $429.98.

Applied Materials (NASDAQ:AMAT - Get Free Report) last issued 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. 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 analyst estimates of $7.68 billion. During the same quarter last year, the business posted $2.39 EPS. Applied Materials's quarterly revenue 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 analysts expect that Applied Materials will post 12.14 earnings per share for the current year.

Insider Activity at Applied Materials

In related news, SVP Omkaram Nalamasu sold 24,263 shares of the company's stock in a transaction that occurred on Tuesday, June 16th. The shares were sold at an average price of $593.43, for a total transaction of $14,398,392.09. Following the sale, the senior vice president owned 146,916 shares of the company's stock, valued at approximately $87,184,361.88. This represents a 14.17% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, 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 completion of the sale, the director owned 40,559 shares in the company, valued at $24,326,071.43. This represents a 18.57% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 278,088 shares of company stock valued at $169,654,805 in the last quarter. 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 lifted its stake in Applied Materials by 4.3% in the second quarter. JFS Wealth Advisors LLC now owns 409 shares of the manufacturing equipment provider's stock valued at $296,000 after purchasing an additional 17 shares during the last quarter. Stonebridge Financial Group LLC grew its holdings in Applied Materials by 2.1% during the second quarter. Stonebridge Financial Group LLC now owns 1,003 shares of the manufacturing equipment provider's stock valued at $725,000 after purchasing an additional 21 shares during the period. Basecamp Wealth Advisors LLC raised its stake in shares of Applied Materials by 0.7% in the first quarter. Basecamp Wealth Advisors LLC now owns 3,288 shares of the manufacturing equipment provider's stock valued at $1,124,000 after buying an additional 22 shares during the period. Financial Management Professionals Inc. raised its stake in shares of Applied Materials by 2.2% in the second quarter. Financial Management Professionals Inc. now owns 1,040 shares of the manufacturing equipment provider's stock valued at $752,000 after buying an additional 22 shares during the period. Finally, Elevation Wealth Partners LLC lifted its position in shares of Applied Materials by 34.8% during the 2nd quarter. Elevation Wealth Partners LLC now owns 93 shares of the manufacturing equipment provider's stock valued at $67,000 after buying an additional 24 shares during the last quarter. Hedge funds and other institutional investors own 80.56% of the company's stock.

Applied Materials News Roundup

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

• Positive Sentiment: Semiconductor stocks rallied this week on strong technology earnings, while three semiconductor ETFs ranked among the largest recipients of new investor cash. The sector-wide buying provides a favorable backdrop for Applied Materials. Semiconductor ETFs Draw Cash This Week as Chip Stocks Rally
• Positive Sentiment: A bullish analysis maintains a “Strong Buy” view after AMAT’s substantial multiyear advance, citing the company’s exposure to AI-driven semiconductor equipment demand and continued operating momentum. Applied Materials: Why I'm Maintaining A Strong Buy After A 45% Run
• Positive Sentiment: Zacks highlighted Applied Materials’ AI-driven momentum, record results, expanding margins and improving customer visibility. These factors reinforce expectations for durable growth. AMAT recently exceeded quarterly earnings and revenue estimates, with revenue increasing year over year and upbeat quarterly earnings guidance. The Zacks Analyst Blog Highlights Applied Materials
• Neutral Sentiment: Coverage of Lam Research’s surge indicates that AI equipment demand was already visible in industry results. This supports the semiconductor-equipment cycle generally, although it does not provide a company-specific update for AMAT. Lam Research Stock's Surge Was Building In Plain Sight
• Negative Sentiment: Despite long-term support from initiatives such as the AI Materials Foundry, one valuation analysis argues that AMAT may not be a bargain after a 218.9% five-year gain. The elevated valuation and high expectations could limit additional upside or increase sensitivity to any slowdown in AI-related spending. Applied Materials Stock May Not Be A Bargain Despite AI Materials Foundry News

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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