Applied Materials (NASDAQ:AMAT) Shares Up 10.8% - Time to Buy?

Key Points

• Applied Materials shares jumped 10.8% on heavy volume, climbing as high as $708.99 after closing at $626.84 the prior session. The move comes amid a strong recent run in the stock.
• Analysts remain broadly optimistic: KeyBanc, Bank of America, Wells Fargo, and others raised price targets, and MarketBeat data shows 27 Buy ratings versus 8 Holds. The average analyst price target is $541.06, though some targets have been lifted much higher.
• The rally is being supported by AI infrastructure and advanced chip manufacturing demand, plus inclusion in the Russell Top 50 Index. Still, some commentary warns the stock may already be pricing in a lot of good news ahead of earnings.

Applied Materials, Inc. (NASDAQ:AMAT - Get Free Report) shot up 10.8% during trading on Monday . The stock traded as high as $708.99 and last traded at $694.64. 13,930,802 shares traded hands during mid-day trading, an increase of 72% from the average session volume of 8,097,463 shares. The stock had previously closed at $626.84.

More Applied Materials News

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

• Positive Sentiment: KeyBanc issued a bullish note ahead of Applied Materials’ Q3 earnings and raised expectations for the stock, helping fuel a sharp rally. Applied Materials Just Ripped 55% in a Month. Is It Time to Sell?
• Positive Sentiment: Bank of America and Wells Fargo also lifted their price targets recently, reinforcing the view that analysts see more upside in AMAT despite its big run-up. Bank of America Just Gave Applied Materials Stock a New Street-High Price Target
• Positive Sentiment: Applied Materials is being helped by continued optimism around AI infrastructure spending and advanced chip manufacturing, which supports demand for its semiconductor equipment. Applied Materials stock surges 10%: here's why
• Positive Sentiment: The stock was added to the Russell Top 50 Index, which can increase institutional attention and passive fund ownership. Applied Materials (AMAT) Joins Russell Top 50 After Leaving Value Indexes
• Neutral Sentiment: Some commentary suggests the stock’s strong move may already reflect a lot of good news, so investors are watching earnings closely for any sign of disappointment. Applied Materials: Equipment Market Surge Priced Into Stock Price

Analysts Set New Price Targets

A number of research firms have weighed in on AMAT. Barclays upped their price target on shares of Applied Materials from $500.00 to $590.00 and gave the stock an "overweight" rating in a research report on Thursday, June 11th. Argus raised their target price on shares of Applied Materials from $420.00 to $500.00 and gave the company a "buy" rating in a research report on Tuesday, May 19th. B. Riley Financial upped their target price on Applied Materials from $550.00 to $790.00 and gave the company a "buy" rating in a research report on Friday. Stifel Nicolaus set a $530.00 price objective on Applied Materials in a research note on Friday, May 15th. Finally, Susquehanna upped their target price on Applied Materials from $435.00 to $500.00 and gave the stock a "positive" rating in a research note on Thursday, April 9th. Twenty-seven research analysts have rated the stock with a Buy rating and eight have given a Hold rating to the stock. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average price target of $541.06.

Applied Materials Stock Performance

The stock has a market cap of $551.52 billion, a price-to-earnings ratio of 65.22, a PEG ratio of 1.74 and a beta of 1.67. The company has a debt-to-equity ratio of 0.22, a current ratio of 2.51 and a quick ratio of 1.80. The firm has a fifty day moving average of $473.54 and a 200 day moving average of $378.12.

Applied Materials (NASDAQ:AMAT - Get Free Report) last released its quarterly earnings data on Thursday, May 14th. The manufacturing equipment provider reported $2.86 earnings per share for the quarter, topping analysts' consensus estimates of $2.68 by $0.18. The company had revenue of $7.91 billion for the quarter, compared to analyst estimates of $7.68 billion. Applied Materials had a return on equity of 36.97% and a net margin of 29.31%.The firm's revenue for the quarter was up 11.4% compared to the same quarter last year. During the same quarter in the previous year, the company posted $2.39 earnings per share. Applied Materials has set its Q3 2026 guidance at 3.160-3.560 EPS. As a group, sell-side analysts forecast that Applied Materials, Inc. will post 12.1 EPS for the current year.

Applied Materials Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Thursday, August 20th will be given a dividend of $0.53 per share. The ex-dividend date of this dividend is Thursday, August 20th. This represents a $2.12 annualized dividend and a dividend yield of 0.3%. Applied Materials's payout ratio is presently 19.91%.

Insider Transactions at Applied Materials

In related news, Director Thomas J. Iannotti sold 9,250 shares of the company's stock in a transaction dated Tuesday, June 16th. The shares were sold at an average price of $599.77, for a total value of $5,547,872.50. Following the completion of the sale, the director owned 40,559 shares of the company's stock, valued at approximately $24,326,071.43. This represents a 18.57% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. Also, insider Prabu G. Raja sold 10,000 shares of the firm's stock in a transaction dated Thursday, June 18th. The stock was sold at an average price of $633.53, for a total transaction of $6,335,300.00. Following the sale, the insider owned 346,642 shares of the company's stock, valued at approximately $219,608,106.26. The trade was a 2.80% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 199,767 shares of company stock valued at $114,104,709 in the last three months. 0.30% of the stock is currently owned by corporate insiders.

Institutional Trading of Applied Materials

Institutional investors have recently made changes to their positions in the company. Cornerstone Financial Management LLC purchased a new stake in Applied Materials in the fourth quarter valued at $25,000. Wilkerson Advisory Group LLC purchased a new position in shares of Applied Materials during the 4th quarter worth $26,000. Financial Freedom LLC acquired a new stake in shares of Applied Materials during the 1st quarter worth about $28,000. Highline Wealth Partners LLC increased its position in shares of Applied Materials by 48.7% during 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 last quarter. Finally, Joseph Group Capital Management purchased a new stake in Applied Materials in the 4th quarter valued at about $31,000. Hedge funds and other institutional investors own 80.56% of the company's stock.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.