Applied Materials (NASDAQ:AMAT) Sets New 12-Month High on Analyst Upgrade

Key Points

• Applied Materials shares hit a new 52-week high after Seaport Research upgraded the stock to a strong-buy, and multiple firms boosted targets (Stifel to $450, Morgan Stanley to $454) leaving a MarketBeat consensus of Moderate Buy with an average price target of $370.86.
• The company beat Q1 estimates (EPS $2.38 vs. $2.21 expected; revenue $7.01B vs. $6.88B), set Q2 guidance of $2.44–$2.84 EPS, and raised its quarterly dividend to $0.53.
• Insider selling activity has occurred recently (CFO and CAO sales; 12,003 shares worth ~$4.48M over 90 days), while institutions own about 80.56% of the stock.

Applied Materials, Inc. (NASDAQ:AMAT - Get Free Report) shares hit a new 52-week high during trading on Wednesday after Seaport Research Partners upgraded the stock to a strong-buy rating. The stock traded as high as $432.81 and last traded at $423.52, with a volume of 1037732 shares trading hands. The stock had previously closed at $410.82.

Other analysts also recently issued reports about the company. Stifel Nicolaus increased their target price on Applied Materials from $340.00 to $450.00 and gave the company a "buy" rating in a research note on Friday, February 13th. Zacks Research downgraded Applied Materials from a "strong-buy" rating to a "hold" rating in a research note on Monday, April 27th. Erste Group Bank upgraded Applied Materials from a "hold" rating to a "buy" rating in a research report on Monday, April 27th. Summit Insights upgraded Applied Materials from a "hold" rating to a "buy" rating in a research report on Friday, February 13th. Finally, Morgan Stanley raised their price target on Applied Materials from $432.00 to $454.00 and gave the company an "overweight" rating in a report on Tuesday. Twenty-seven research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of $370.86.

Insiders Place Their Bets

In other Applied Materials news, CFO Brice Hill sold 5,000 shares of the business's stock in a transaction that occurred on Tuesday, February 17th. The stock was sold at an average price of $361.21, for a total transaction of $1,806,050.00. Following the sale, the chief financial officer directly owned 138,565 shares of the company's stock, valued at $50,051,063.65. The trade was a 3.48% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, CAO Adam Sanders sold 534 shares of the business's stock in a transaction that occurred on Tuesday, February 24th. The stock was sold at an average price of $379.16, for a total value of $202,471.44. Following the sale, the chief accounting officer directly owned 4,625 shares in the company, valued at $1,753,615. The trade was a 10.35% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 12,003 shares of company stock valued at $4,484,189 over the last ninety days. 0.30% of the stock is owned by insiders.

Key Applied Materials News

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

• Positive Sentiment: Morgan Stanley raised its price target on AMAT to $454 and kept an "overweight" rating, giving the stock meaningful upside versus recent levels — a catalyst for buying from institutional investors. Benzinga: Morgan Stanley raises price target
• Positive Sentiment: Multiple analyst pieces (Yahoo/ Zacks) highlight AMAT's strong history of earnings surprises and argue the company has the setup to beat again next quarter — supporting expectations for stronger near-term fundamentals. Will Applied Materials (AMAT) Beat Estimates Again?
• Positive Sentiment: Results from other equipment/semiconductor suppliers (Advanced Energy, Lattice Semiconductor) showing revenue and earnings beats reinforce a constructive demand narrative for AI/data-center driven capex — a tailwind for AMAT's order outlook. Advanced Energy Q1 Earnings Beat
• Neutral Sentiment: Applied Materials announced management will participate in upcoming investor conferences (fireside chats) — gives investors more access and potential for incremental forward guidance or color, but is informational unless new guidance is issued. Applied Materials to Participate in Upcoming Investor Conferences
• Neutral Sentiment: Sector commentary — chip stocks' big April rally and articles comparing AMAT to peers — helps explain momentum but also raises longer‑term valuation questions; useful context but not company‑specific news. Chip Stocks Soared 70% in April
• Neutral Sentiment: Other market writeups (Zacks pieces, screening articles) spotlight AMAT as a beat candidate or compare performance vs. peers; these amplify sentiment but largely echo the same bullish thesis. Zacks: Will AMAT Beat Again?

Institutional Trading of Applied Materials

A number of large investors have recently modified their holdings of the company. Private Wealth Management Group LLC raised its stake in Applied Materials by 4.9% in the first quarter. Private Wealth Management Group LLC now owns 531 shares of the manufacturing equipment provider's stock worth $181,000 after buying an additional 25 shares in the last quarter. One Day In July LLC increased its position in shares of Applied Materials by 2.4% during the first quarter. One Day In July LLC now owns 1,089 shares of the manufacturing equipment provider's stock worth $372,000 after purchasing an additional 26 shares in the last quarter. Pinnacle Bancorp Inc. increased its position in shares of Applied Materials by 1.3% during the first quarter. Pinnacle Bancorp Inc. now owns 2,082 shares of the manufacturing equipment provider's stock worth $712,000 after purchasing an additional 27 shares in the last quarter. Horst & Graben Wealth Management LLC increased its position in shares of Applied Materials by 2.1% during the first quarter. Horst & Graben Wealth Management LLC now owns 1,304 shares of the manufacturing equipment provider's stock worth $446,000 after purchasing an additional 27 shares in the last quarter. Finally, Warther Private Wealth LLC increased its position in shares of Applied Materials by 1.5% during the fourth quarter. Warther Private Wealth LLC now owns 1,908 shares of the manufacturing equipment provider's stock worth $490,000 after purchasing an additional 28 shares in the last quarter. Hedge funds and other institutional investors own 80.56% of the company's stock.

Applied Materials Stock Performance

The business has a 50-day moving average price of $369.34 and a 200-day moving average price of $308.46. The firm has a market capitalization of $332.54 billion, a price-to-earnings ratio of 43.01, a P/E/G ratio of 1.74 and a beta of 1.66. The company has a quick ratio of 1.94, a current ratio of 2.71 and a debt-to-equity ratio of 0.30.

Applied Materials (NASDAQ:AMAT - Get Free Report) last issued its quarterly earnings results on Thursday, February 12th. The manufacturing equipment provider reported $2.38 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.21 by $0.17. Applied Materials had a return on equity of 37.52% and a net margin of 27.78%.The business had revenue of $7.01 billion for the quarter, compared to the consensus estimate of $6.88 billion. During the same period in the prior year, the firm posted $2.38 earnings per share. The business's quarterly revenue was down 2.1% on a year-over-year basis. Applied Materials has set its Q2 2026 guidance at 2.440-2.840 EPS. As a group, sell-side analysts forecast that Applied Materials, Inc. will post 11.14 earnings per share for the current year.

Applied Materials Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, June 11th. Stockholders of record on Thursday, May 21st will be paid a dividend of $0.53 per share. This represents a $2.12 annualized dividend and a dividend yield of 0.5%. The ex-dividend date of this dividend is Thursday, May 21st. This is an increase from Applied Materials's previous quarterly dividend of $0.46. Applied Materials's dividend payout ratio is currently 18.83%.

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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