Applied Materials (NASDAQ:AMAT) Shares Up 4.1% - Here's What Happened

Key Points

• Applied Materials shares rose 4.1% on Thursday, with trading volume more than doubling the average session, as investors reacted positively to recent company news and analyst commentary.
• Citi lifted its price target to $710, citing optimism around AI-driven chip spending and memory-equipment demand, while other analysts also maintained or raised bullish ratings on the stock.
• The company continues to show solid operating performance, having beat quarterly EPS and revenue estimates and issued Q3 guidance above prior expectations, though heavy insider selling could temper some enthusiasm.

Shares of Applied Materials, Inc. (NASDAQ:AMAT - Get Free Report) shot up 4.1% during mid-day trading on Thursday . The stock traded as high as $638.90 and last traded at $617.11. Approximately 16,601,756 shares changed hands during mid-day trading, an increase of 115% from the average session volume of 7,714,619 shares. The stock had previously closed at $592.92.

Applied Materials News Summary

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

• Positive Sentiment: Citi raised its price target on Applied Materials, reinforcing confidence that AI-driven chip spending and memory-equipment demand can support further upside. Applied Materials surges as Citi lifts target on AI demand boom
• Positive Sentiment: Applied Materials unveiled SENZ, an integrated visual system for AI smart glasses, and partnered with EssilorLuxottica and Qualcomm, suggesting a new growth avenue in AI eyewear and optics. Applied Materials (AMAT) Launches SENZ With Qualcomm And EssilorLuxottica For AI Eyewear
• Positive Sentiment: Recent commentary highlighted strong fundamentals, record results, and optimism that AMAT is well positioned for the AI equipment super-cycle, which is helping sentiment around the stock. Applied Materials: The Cheapest Seat On The AI Equipment Super-Cycle
• Neutral Sentiment: Several insiders, including the CEO and senior executives, sold shares worth roughly $65 million, which may create some near-term caution but does not by itself change the company’s operating outlook. Why Applied Materials Insiders Sold $65 Million Worth of Stock
• Negative Sentiment: Heavy insider selling, including a large sale by CEO Gary Dickerson, could temper enthusiasm if investors view it as a sign the stock has run too far ahead of fundamentals. Timothy Deane Sells 8,621 Shares of Applied Materials NASDAQ: AMAT Stock

Analyst Ratings Changes

Several equities analysts have weighed in on AMAT shares. Wolfe Research raised their target price on Applied Materials from $500.00 to $550.00 and gave the company an "outperform" rating in a report on Friday, May 15th. Truist Financial set a $575.00 price objective on Applied Materials in a report on Thursday, May 28th. Citigroup boosted their target price on Applied Materials from $550.00 to $710.00 and gave the stock a "buy" rating in a report on Wednesday. Wall Street Zen raised Applied Materials from a "hold" rating to a "buy" rating in a research report on Saturday, May 23rd. Finally, B. Riley Financial lifted their price target on shares of Applied Materials from $530.00 to $550.00 and gave the company a "buy" rating in a research report on Friday, May 15th. Twenty-seven investment analysts have rated the stock with a Buy rating and eight have given a Hold rating to the company. According to data from MarketBeat, Applied Materials presently has a consensus rating of "Moderate Buy" and an average price target of $489.16.

Applied Materials Price Performance

The company has a current ratio of 2.51, a quick ratio of 1.80 and a debt-to-equity ratio of 0.22. The stock has a fifty day simple moving average of $441.16 and a 200-day simple moving average of $360.55. The stock has a market cap of $489.96 billion, a price-to-earnings ratio of 57.94, a price-to-earnings-growth ratio of 1.58 and a beta of 1.67.

Applied Materials (NASDAQ:AMAT - Get Free Report) last issued its quarterly earnings results on Thursday, May 14th. The manufacturing equipment provider reported $2.86 EPS for the quarter, topping analysts' consensus estimates of $2.68 by $0.18. Applied Materials had a return on equity of 36.97% and a net margin of 29.31%.The company had revenue of $7.91 billion during the quarter, compared to analyst estimates of $7.68 billion. During the same period in the previous year, the company earned $2.39 earnings per share. The company'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 research analysts expect that Applied Materials, Inc. will post 12.1 EPS for the current year.

Applied Materials Dividend Announcement

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

Insider Buying and Selling

In other news, SVP Omkaram Nalamasu sold 24,263 shares of the business's stock in a transaction dated 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 transaction, the senior vice president owned 146,916 shares in the company, valued at approximately $87,184,361.88. The trade was a 14.17% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, insider Prabu G. Raja sold 50,000 shares of the company's stock in a transaction dated Thursday, June 4th. The shares were sold at an average price of $505.28, for a total transaction of $25,264,000.00. Following the transaction, the insider directly owned 356,642 shares of the company's stock, valued at $180,204,069.76. This represents a 12.30% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 189,767 shares of company stock worth $107,769,409. 0.30% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Applied Materials

Several large investors have recently added to or reduced their stakes in AMAT. Financial Freedom LLC acquired a new position in shares of Applied Materials in the first quarter valued at $28,000. Cornerstone Financial Management LLC acquired a new stake in Applied Materials during the fourth quarter worth $25,000. Whipplewood Advisors LLC increased its holdings in Applied Materials by 218.8% in the 1st quarter. Whipplewood Advisors LLC now owns 102 shares of the manufacturing equipment provider's stock valued at $35,000 after buying an additional 70 shares during the period. Wilkerson Advisory Group LLC acquired a new position in shares of Applied Materials in the 4th quarter valued at $26,000. Finally, MBM Wealth Consultants LLC bought a new position in shares of Applied Materials during the 1st quarter worth about $38,000. Institutional investors and hedge funds 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.

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