Applied Materials (NASDAQ:AMAT) Shares Up 5.5% After Analyst Upgrade

Key Points

• Applied Materials shares rose 5.5% to $535.31 after Wall Street Zen upgraded the stock from Hold to Buy, with trading volume slightly above average.
• Analyst sentiment is broadly positive: the stock has a “Moderate Buy” consensus rating and an average price target of $640.17, with recent targets ranging up to $740.
• Strong quarterly results supported the upgrade, as revenue increased 24.8% year over year to $9.12 billion and adjusted EPS of $3.50 exceeded expectations; however, insiders have sold $169.7 million of shares over the past quarter.

Shares of Applied Materials, Inc. (NASDAQ:AMAT - Get Free Report) shot up 5.5% during mid-day trading on Monday after Wall Street Zen upgraded the stock from a hold rating to a buy rating. The stock traded as high as $539.81 and last traded at $535.31. Approximately 8,576,033 shares were traded during trading, an increase of 4% from the average session volume of 8,264,229 shares. The stock had previously closed at $507.18.

Several other analysts have also weighed in on AMAT. JPMorgan Chase & Co. raised their price objective on shares of Applied Materials from $515.00 to $660.00 and gave the stock an "overweight" rating in a report on Friday. Needham & Company LLC restated a "buy" rating and set a $740.00 price target on shares of Applied Materials in a research report on Friday. UBS Group set a $675.00 price target on Applied Materials and gave the company a "buy" rating in a report on Friday. Deutsche Bank Aktiengesellschaft reiterated a "buy" rating and issued a $605.00 price objective on shares of Applied Materials in a research report on Friday. Finally, Citigroup restated a "buy" rating on shares of Applied Materials in a report on Monday, August 3rd. One equities research analyst has rated the stock with a Strong Buy rating, twenty-seven have issued a Buy rating and six have given a Hold rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $640.17.

Insiders Place Their Bets

In other Applied Materials news, SVP Timothy M. Deane sold 8,621 shares of the stock in a transaction on Monday, June 15th. The stock was sold at an average price of $590.76, for a total value of $5,092,941.96. Following the transaction, the senior vice president directly owned 134,631 shares in the company, valued at approximately $79,534,609.56. This trade represents a 6.02% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Prabu G. Raja sold 10,000 shares of Applied Materials stock in a transaction on Thursday, June 18th. The shares were sold at an average price of $633.53, for a total value of $6,335,300.00. Following the completion of the sale, the insider directly owned 346,642 shares of the company's stock, valued at $219,608,106.26. This trade represents 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 278,088 shares of company stock valued at $169,654,805 over the last quarter. Company insiders own 0.30% of the company's stock.

Applied Materials News Roundup

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

• Positive Sentiment: Applied Materials reported fiscal third-quarter revenue of $9.12 billion, up 24.8% year over year, while adjusted earnings of $3.50 per share exceeded analyst expectations. Management’s fiscal fourth-quarter revenue guidance of approximately $10.25 billion was reportedly 6.1% above consensus, reflecting continued demand from artificial intelligence, advanced packaging, and other semiconductor markets. AMAT Q2 Deep Dive: AI Demand and Advanced Packaging Drive Guidance Upside, Market Reacts Cautiously
• Positive Sentiment: A separate analysis highlighted record revenue and improving guidance, arguing that the stock remains more than 25% below its high despite strong operating results. That valuation gap may be attracting investors who believe the company’s growth will persist. Applied Materials Trades More Than 25% Below Its High With Revenue at a Record
• Positive Sentiment: B. Riley Financial and Needham & Company reiterated Buy ratings on Applied Materials, while separate analyst actions raised price targets to $600 and $660. The recommendations reinforce expectations for additional upside if earnings growth and AI-related demand continue. Applied Materials' Buy Rating Reiterated at B. Riley Financial Applied Materials' Buy Rating Reiterated at Needham Applied Materials Price Target Raised to $600 Applied Materials Price Target Raised to $660
• Neutral Sentiment: The broader market backdrop remains mixed, with the S&P 500 near a record but investors monitoring weak retail data, geopolitical tensions, and upcoming economic releases. These factors could influence semiconductor-stock volatility even as AMAT’s company-specific fundamentals remain strong. S&P 500 Nears Record as Weak Retail Data and Iran Tensions Shape Critical Week
• Negative Sentiment: Some market commentary noted a cautious reaction to the earnings report and options data suggested potential volatility, indicating that investors may still be concerned about elevated expectations and the stock’s premium valuation. Applied Materials Stock Is Down on Earnings

Hedge Funds Weigh In On Applied Materials

Several institutional investors and hedge funds have recently made changes to their positions in AMAT. JFS Wealth Advisors LLC grew its stake in Applied Materials by 4.3% during the second quarter. JFS Wealth Advisors LLC now owns 409 shares of the manufacturing equipment provider's stock worth $296,000 after buying an additional 17 shares during the last quarter. Innovative Asset Advisors Group LLC boosted its holdings in shares of Applied Materials by 2.1% in the 2nd quarter. Innovative Asset Advisors Group LLC now owns 961 shares of the manufacturing equipment provider's stock worth $695,000 after acquiring an additional 20 shares in the last quarter. Stonebridge Financial Group LLC grew its position in Applied Materials by 2.1% during the 2nd quarter. Stonebridge Financial Group LLC now owns 1,003 shares of the manufacturing equipment provider's stock worth $725,000 after acquiring an additional 21 shares during the last quarter. N.E.W. Advisory Services LLC grew its position in Applied Materials by 5.9% during the 2nd quarter. N.E.W. Advisory Services LLC now owns 377 shares of the manufacturing equipment provider's stock worth $273,000 after acquiring an additional 21 shares during the last quarter. Finally, IMG Wealth Management Inc. increased its holdings in Applied Materials by 13.0% during the 2nd quarter. IMG Wealth Management Inc. now owns 183 shares of the manufacturing equipment provider's stock valued at $132,000 after purchasing an additional 21 shares in the last quarter. Institutional investors and hedge funds own 80.56% of the company's stock.

Applied Materials Trading Up 5.5%

The company has a 50-day simple moving average of $564.15 and a 200-day simple moving average of $445.77. The company has a debt-to-equity ratio of 0.20, a quick ratio of 1.79 and a current ratio of 2.42. The stock has a market cap of $425.01 billion, a P/E ratio of 46.15, a P/E/G ratio of 1.25 and a beta of 1.61.

Applied Materials (NASDAQ:AMAT - Get Free Report) last announced its earnings results on Thursday, August 13th. The manufacturing equipment provider reported $3.50 EPS for the quarter, topping the consensus estimate of $3.40 by $0.10. Applied Materials had a return on equity of 38.02% and a net margin of 30.05%.The company had revenue of $9.12 billion for the quarter, compared to analysts' expectations of $8.99 billion. During the same quarter in the prior year, the business earned $2.48 earnings per share. The business's revenue for the quarter was up 24.8% on a year-over-year basis. Applied Materials has set its Q4 2026 guidance at 3.820-4.220 EPS. On average, sell-side analysts forecast that Applied Materials, Inc. will post 12.48 EPS for the current fiscal year.

Applied Materials Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Thursday, August 20th will be paid 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 dividend yield of 0.4%. Applied Materials's payout ratio is currently 18.28%.

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.

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