Applied Materials (NASDAQ:AMAT) Stock Price Up 5.3% - What's Next?

Key Points

• Applied Materials shares rose 5.3% on Tuesday, trading above the prior close amid heavier-than-normal volume. The stock reached as high as $456.78 and last traded near $454.89.
• Several analysts turned more bullish, including Mizuho, RBC, and JPMorgan, which lifted price targets to as high as $520. The consensus rating remains Moderate Buy with an average price target of $465.14.
• The company posted a solid earnings beat, reporting $2.86 EPS and $7.91 billion in revenue, both above estimates, and it also raised its quarterly dividend to $0.53 per share from $0.46.

Applied Materials, Inc. (NASDAQ:AMAT - Get Free Report) shares rose 5.3% during trading on Tuesday . The company traded as high as $456.78 and last traded at $454.89. Approximately 8,037,751 shares traded hands during trading, an increase of 9% from the average daily volume of 7,357,150 shares. The stock had previously closed at $432.16.

Analysts Set New Price Targets

AMAT has been the subject of several research analyst reports. Mizuho boosted their price target on shares of Applied Materials from $410.00 to $500.00 and gave the company an "outperform" rating in a report on Friday, May 15th. Wall Street Zen raised shares of Applied Materials from a "hold" rating to a "buy" rating in a report on Saturday. Royal Bank Of Canada boosted their price target on shares of Applied Materials from $500.00 to $520.00 and gave the company an "outperform" rating in a report on Friday, May 15th. JPMorgan Chase & Co. boosted their price target on shares of Applied Materials from $400.00 to $515.00 and gave the company an "overweight" rating in a report on Friday, May 15th. Finally, Zacks Research lowered shares of Applied Materials from a "strong-buy" rating to a "hold" rating in a report on Monday, April 27th. Twenty-seven equities research analysts have rated the stock with a Buy rating and eight have given a Hold rating to the company's stock. Based on data from MarketBeat.com, Applied Materials has a consensus rating of "Moderate Buy" and a consensus price target of $465.14.

Applied Materials Stock Performance

The stock has a market capitalization of $361.01 billion, a price-to-earnings ratio of 42.71, a price-to-earnings-growth ratio of 1.21 and a beta of 1.66. 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's 50 day moving average is $388.99 and its two-hundred day moving average is $328.11.

Applied Materials (NASDAQ:AMAT - Get Free Report) last announced its earnings results 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 firm had revenue of $7.91 billion during the quarter, compared to analyst estimates of $7.68 billion. Applied Materials had a net margin of 29.31% and a return on equity of 36.97%. The company's revenue for the quarter was up 11.4% compared to the same quarter last year. During the same period in the prior year, the business earned $2.39 EPS. Applied Materials has set its Q3 2026 guidance at 3.160-3.560 EPS. Analysts expect that Applied Materials, Inc. will post 12.02 earnings per share for the current fiscal year.

Applied Materials Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, June 11th. Investors of record on Thursday, May 21st will be paid a $0.53 dividend. This represents a $2.12 dividend on an annualized basis 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 currently 19.91%.

Insiders Place Their Bets

In related news, Director Judy Bruner sold 2,500 shares of the company's stock in a transaction on Wednesday, February 25th. The shares were sold at an average price of $391.71, for a total value of $979,275.00. Following the completion of the transaction, the director directly owned 26,089 shares of the company's stock, valued at approximately $10,219,322.19. This represents a 8.74% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Insiders own 0.30% of the company's stock.

Hedge Funds Weigh In On Applied Materials

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Private Wealth Management Group LLC lifted its position in Applied Materials by 4.9% during the 1st 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 lifted its position in Applied Materials by 2.4% during the 1st quarter. One Day In July LLC now owns 1,089 shares of the manufacturing equipment provider's stock worth $372,000 after buying an additional 26 shares in the last quarter. Pinnacle Bancorp Inc. lifted its position in Applied Materials by 1.3% during the 1st quarter. Pinnacle Bancorp Inc. now owns 2,082 shares of the manufacturing equipment provider's stock worth $712,000 after buying an additional 27 shares in the last quarter. Horst & Graben Wealth Management LLC lifted its position in Applied Materials by 2.1% during the 1st quarter. Horst & Graben Wealth Management LLC now owns 1,304 shares of the manufacturing equipment provider's stock worth $446,000 after buying an additional 27 shares in the last quarter. Finally, Warther Private Wealth LLC lifted its position in Applied Materials by 1.5% during the 4th quarter. Warther Private Wealth LLC now owns 1,908 shares of the manufacturing equipment provider's stock worth $490,000 after buying an additional 28 shares in the last quarter. 80.56% of the stock is owned by institutional investors and hedge funds.

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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