Applied Materials (NASDAQ:AMAT) Sets New 1-Year High - Here's Why

Key Points

• Applied Materials (NASDAQ:AMAT) shares hit a new 52-week high of $227.11 during trading, a significant increase from its previous closing price of $218.19.
• The company reported earnings of $2.48 per share for the last quarter, surpassing analyst expectations, with revenue reaching $7.30 billion, a 7.7% increase from the same quarter last year.
• A quarterly dividend of $0.46 has been announced, equating to an annualized rate of $1.84 and a yield of 0.8%, with the ex-dividend date set for November 20.

Applied Materials, Inc. (NASDAQ:AMAT - Get Free Report) shares reached a new 52-week high during trading on Wednesday . The stock traded as high as $226.75 and last traded at $227.11, with a volume of 4356963 shares changing hands. The stock had previously closed at $218.19.

Analyst Upgrades and Downgrades

A number of research analysts have issued reports on AMAT shares. Wolfe Research reduced their price target on Applied Materials from $230.00 to $200.00 and set an "outperform" rating for the company in a research report on Friday, August 15th. Weiss Ratings restated a "hold (c)" rating on shares of Applied Materials in a research note on Wednesday, October 8th. DZ Bank lowered shares of Applied Materials from a "hold" rating to a "sell" rating and set a $150.00 target price for the company. in a research report on Friday, August 15th. Citigroup lowered their target price on shares of Applied Materials from $220.00 to $205.00 and set a "buy" rating on the stock in a research note on Friday, August 15th. Finally, Stifel Nicolaus upped their price target on shares of Applied Materials from $180.00 to $215.00 and gave the stock a "buy" rating in a research note on Monday. Eighteen equities research analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of $204.54.

Applied Materials Price Performance

The company has a market cap of $181.30 billion, a price-to-earnings ratio of 27.13, a PEG ratio of 2.88 and a beta of 1.82. The company's 50 day moving average price is $184.11 and its 200-day moving average price is $172.62. The company has a debt-to-equity ratio of 0.28, a quick ratio of 1.76 and a current ratio of 2.50.

Applied Materials (NASDAQ:AMAT - Get Free Report) last issued its earnings results on Thursday, August 14th. The manufacturing equipment provider reported $2.48 earnings per share for the quarter, topping analysts' consensus estimates of $2.36 by $0.12. The firm had revenue of $7.30 billion during the quarter, compared to analysts' expectations of $7.21 billion. Applied Materials had a net margin of 23.88% and a return on equity of 40.96%. The firm'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 research analysts forecast that Applied Materials, Inc. will post 9.38 earnings per share for the current fiscal year.

Applied Materials Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, December 11th. Investors of record on Thursday, November 20th will be issued a $0.46 dividend. This represents a $1.84 dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date is Thursday, November 20th. Applied Materials's payout ratio is presently 21.93%.

Institutional Trading of Applied Materials

Several institutional investors and hedge funds have recently bought and sold shares of AMAT. Runnymede Capital Advisors Inc. raised its holdings in shares of Applied Materials by 972.2% during the first quarter. Runnymede Capital Advisors Inc. now owns 193 shares of the manufacturing equipment provider's stock valued at $28,000 after acquiring an additional 175 shares during the period. Smallwood Wealth Investment Management LLC purchased a new position in Applied Materials during the 1st quarter worth approximately $29,000. Maseco LLP acquired a new stake in Applied Materials during the 2nd quarter valued at $30,000. Clal Insurance Enterprises Holdings Ltd raised its stake in Applied Materials by 435.0% during the 1st quarter. Clal Insurance Enterprises Holdings Ltd now owns 214 shares of the manufacturing equipment provider's stock valued at $31,000 after purchasing an additional 174 shares during the period. Finally, Activest Wealth Management lifted its holdings in shares of Applied Materials by 5,325.0% in the first quarter. Activest Wealth Management now owns 217 shares of the manufacturing equipment provider's stock valued at $31,000 after purchasing an additional 213 shares in the last quarter. Institutional investors and hedge funds own 80.56% of the company's stock.

About Applied Materials

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.

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