Applied Materials (NASDAQ:AMAT) Trading 1.8% Higher - Here's Why

Key Points

• Applied Materials shares rose 1.8% on Monday, trading as high as $463.88 after closing at $450.06 the prior session.
• The company beat quarterly expectations with EPS of $2.86 versus $2.68 expected and revenue of $7.91 billion versus $7.68 billion expected, while also issuing Q3 guidance of $3.16 to $3.56 EPS.
• Analysts remain largely constructive, with 27 Buy ratings and 8 Hold ratings; several firms raised price targets, and the consensus target is $470.13.

Applied Materials, Inc. (NASDAQ:AMAT - Get Free Report)'s share price traded up 1.8% on Monday . The stock traded as high as $463.88 and last traded at $458.17. 6,034,659 shares traded hands during trading, a decline of 18% from the average session volume of 7,317,142 shares. The stock had previously closed at $450.06.

Wall Street Analysts Forecast Growth

Several research analysts recently weighed in on the stock. Zacks Research cut shares of Applied Materials from a "strong-buy" rating to a "hold" rating in a report on Monday, April 27th. TD Cowen boosted their price target on shares of Applied Materials from $450.00 to $525.00 and gave the stock a "buy" rating in a report on Friday, May 15th. Citigroup lifted their price objective on shares of Applied Materials from $420.00 to $520.00 and gave the stock a "buy" rating in a research report on Tuesday, May 12th. B. Riley Financial lifted their price objective on shares of Applied Materials from $530.00 to $550.00 and gave the stock a "buy" rating in a research report on Friday, May 15th. Finally, Weiss Ratings reaffirmed a "buy (b-)" rating on shares of Applied Materials in a research report on Friday, March 27th. Twenty-seven investment analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the company. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $470.13.

Applied Materials Trading Up 1.8%

The firm has a market cap of $363.77 billion, a P/E ratio of 43.02, a price-to-earnings-growth ratio of 1.26 and a beta of 1.66. The company has a quick ratio of 1.80, a current ratio of 2.51 and a debt-to-equity ratio of 0.22. The firm's 50-day simple moving average is $397.25 and its 200 day simple moving average is $334.19.

Applied Materials (NASDAQ:AMAT - Get Free Report) last posted its quarterly earnings results on Thursday, May 14th. The manufacturing equipment provider reported $2.86 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.68 by $0.18. Applied Materials had a net margin of 29.31% and a return on equity of 36.97%. The company had revenue of $7.91 billion for the quarter, compared to analyst estimates of $7.68 billion. During the same quarter in the previous year, the firm posted $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, analysts expect that Applied Materials, Inc. will post 12.02 earnings per share for the current year.

Applied Materials Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, June 11th. Stockholders of record on Thursday, May 21st will be given a $0.53 dividend. This represents a $2.12 annualized dividend and a dividend yield of 0.5%. This is an increase from Applied Materials's previous quarterly dividend of $0.46. The ex-dividend date of this dividend is Thursday, May 21st. Applied Materials's payout ratio is presently 19.91%.

Insider Activity at Applied Materials

In other news, CAO Adam Sanders sold 268 shares of the business's stock in a transaction that occurred on Friday, May 22nd. The shares were sold at an average price of $434.22, for a total value of $116,370.96. Following the sale, the chief accounting officer owned 4,280 shares of the company's stock, valued at $1,858,461.60. The trade was a 5.89% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director Judy Bruner sold 1,128 shares of the business's stock in a transaction that occurred on Tuesday, May 26th. The shares were sold at an average price of $450.00, for a total transaction of $507,600.00. Following the completion of the sale, the director directly owned 26,544 shares in the company, valued at approximately $11,944,800. This trade represents a 4.08% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders own 0.30% of the company's stock.

Institutional Trading of Applied Materials

Hedge funds and other institutional investors have recently modified their holdings of the business. Cornerstone Financial Management LLC bought a new stake in Applied Materials during the 4th quarter worth approximately $25,000. Redmont Wealth Advisors LLC bought a new stake in Applied Materials during the 3rd quarter worth approximately $26,000. Wilkerson Advisory Group LLC bought a new stake in Applied Materials during the 4th quarter worth approximately $26,000. Financial Freedom LLC bought a new stake in Applied Materials during the 1st quarter worth approximately $28,000. Finally, Highline Wealth Partners LLC increased its holdings in 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 acquiring an additional 38 shares during the period. Institutional investors own 80.56% of the company's stock.

Applied Materials Company Profile

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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