Applied Materials (NASDAQ:AMAT) Shares Up 6% - Here's Why

Key Points

• Applied Materials shares rose 6% after a wave of upbeat analyst commentary, with the stock trading above its prior close and near its session high.
• Seaport Research initiated coverage with a Buy rating and a $500 price target, while several other firms also raised targets; overall, 28 analysts rate the stock a Buy versus 7 Holds.
• The company recently beat earnings and revenue estimates and raised its quarterly dividend to $0.53 per share, reinforcing bullish sentiment heading into its next report.

Applied Materials, Inc. (NASDAQ:AMAT - Get Free Report) was up 6% on Friday . The stock traded as high as $438.04 and last traded at $435.1810. Approximately 7,439,718 shares traded hands during mid-day trading, an increase of 4% from the average daily volume of 7,184,898 shares. The stock had previously closed at $410.64.

Applied Materials News Summary

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

• Positive Sentiment: Seaport Research initiated coverage with a Buy rating and a $500 price target, calling Applied Materials a key beneficiary of AI semiconductor spending. Seaport Research Initiates Coverage of Applied Materials (AMAT) with Buy
• Positive Sentiment: Analysts at Erste Group raised FY2027 earnings estimates, reinforcing expectations for long-term earnings growth. BofA Remains Bullish on Applied Materials (AMAT)
• Positive Sentiment: Wall Street commentary suggests Applied Materials could post an earnings beat in its upcoming report, which is keeping sentiment constructive. Applied Materials (AMAT) Reports Next Week: Wall Street Expects Earnings Growth
• Neutral Sentiment: Recent articles note the stock had fallen more than the broader market in the prior session, but those moves appear secondary to the stronger analyst-driven optimism. Here's Why Applied Materials (AMAT) Fell More Than Broader Market

Analysts Set New Price Targets

Several equities research analysts recently weighed in on the company. Bank of America boosted their target price on Applied Materials from $300.00 to $350.00 and gave the stock a "buy" rating in a research note on Tuesday, January 13th. The Goldman Sachs Group boosted their target price on shares of Applied Materials from $310.00 to $390.00 and gave the company a "buy" rating in a research note on Friday, February 13th. Cantor Fitzgerald reiterated an "overweight" rating and set a $470.00 target price on shares of Applied Materials in a report on Friday, February 13th. Weiss Ratings reiterated a "buy (b-)" rating on shares of Applied Materials in a research note on Friday, March 27th. Finally, KeyCorp increased their price objective on shares of Applied Materials from $380.00 to $450.00 and gave the stock an "overweight" rating in a research note on Friday, February 13th. Twenty-eight research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $375.90.

Applied Materials Stock Up 6.0%

The company has a debt-to-equity ratio of 0.30, a quick ratio of 1.94 and a current ratio of 2.71. The business's 50-day moving average is $371.10 and its two-hundred day moving average is $311.19. The firm has a market capitalization of $345.36 billion, a price-to-earnings ratio of 44.54, a P/E/G ratio of 1.90 and a beta of 1.66.

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

Applied Materials Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, June 11th. Shareholders of record on Thursday, May 21st will be issued a dividend of $0.53 per share. This represents a $2.12 annualized dividend and a yield of 0.5%. The ex-dividend date of this dividend is Thursday, May 21st. This is a boost from Applied Materials's previous quarterly dividend of $0.46. Applied Materials's dividend payout ratio (DPR) is presently 21.70%.

Insider Transactions at Applied Materials

In related news, Director Judy Bruner sold 3,969 shares of the business's stock in a transaction dated Monday, February 23rd. The stock was sold at an average price of $377.02, for a total value of $1,496,392.38. Following the sale, the director directly owned 28,589 shares in the company, valued at approximately $10,778,624.78. The trade was a 12.19% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, CAO Adam Sanders sold 534 shares of the business's stock in a transaction on Tuesday, February 24th. The shares were sold at an average price of $379.16, for a total transaction of $202,471.44. Following the transaction, the chief accounting officer owned 4,625 shares of the company's stock, valued at $1,753,615. This trade represents a 10.35% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 12,003 shares of company stock valued at $4,484,189 in the last 90 days. 0.30% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in AMAT. Capital Research Global Investors grew its position in Applied Materials by 119.8% during the 4th quarter. Capital Research Global Investors now owns 32,707,049 shares of the manufacturing equipment provider's stock valued at $8,405,458,000 after purchasing an additional 17,829,377 shares during the last quarter. Norges Bank purchased a new position in Applied Materials during the fourth quarter valued at approximately $2,858,543,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its stake in Applied Materials by 617.2% in the 3rd quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 9,129,483 shares of the manufacturing equipment provider's stock worth $1,869,170,000 after buying an additional 7,856,576 shares in the last quarter. Ameriprise Financial Inc. boosted its stake in Applied Materials by 40.1% in the 3rd quarter. Ameriprise Financial Inc. now owns 12,520,114 shares of the manufacturing equipment provider's stock worth $2,563,376,000 after purchasing an additional 3,583,751 shares during the period. Finally, Auto Owners Insurance Co increased its holdings in Applied Materials by 25,824.4% in the 4th quarter. Auto Owners Insurance Co now owns 3,370,167 shares of the manufacturing equipment provider's stock valued at $86,610,000 after acquiring an additional 3,357,167 shares during the last quarter. 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.

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