Applied Materials (NASDAQ:AMAT) Trading Up 3.1% After Analyst Upgrade

Key Points

• Susquehanna raised its price target to $500, sending AMAT up about 3.1% intraday; several other brokers also lifted targets and the sell‑side consensus is a “Moderate Buy” (average target ~$367).
• Applied beat estimates (Q: $2.38 EPS vs. $2.21 expected; revenue $7.01B vs. $6.88B) and set Q2 FY26 guidance of $2.44–$2.84, while also raising the quarterly dividend to $0.53.
• Insider selling was noted recently — CFO Brice Hill sold 5,000 shares and CAO Adam Sanders sold 534, with insiders selling 12,003 shares (~$4.48M) in the past 90 days and insiders now owning ~0.30% of the stock.

Applied Materials, Inc. (NASDAQ:AMAT - Get Free Report)'s stock price rose 3.1% during trading on Thursday after Susquehanna raised their price target on the stock from $435.00 to $500.00. Susquehanna currently has a positive rating on the stock. Applied Materials traded as high as $398.74 and last traded at $397.81. Approximately 5,326,047 shares were traded during trading, a decline of 30% from the average daily volume of 7,560,362 shares. The stock had previously closed at $385.72.

A number of other analysts have also commented on the stock. KGI Securities raised shares of Applied Materials to an "outperform" rating and set a $425.00 target price for the company in a report on Friday, February 13th. KeyCorp raised their price target on Applied Materials from $380.00 to $450.00 and gave the stock an "overweight" rating in a research report on Friday, February 13th. Royal Bank Of Canada set a $430.00 price objective on Applied Materials in a research note on Friday, February 13th. B. Riley Financial reiterated a "buy" rating and issued a $450.00 price objective (up from $400.00) on shares of Applied Materials in a report on Friday, February 13th. Finally, Jefferies Financial Group raised their target price on Applied Materials from $260.00 to $360.00 and gave the stock a "buy" rating in a report on Monday, December 15th. One analyst has rated the stock with a Strong Buy rating, twenty-six have assigned a Buy rating and seven have given a Hold rating to the company's stock. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price of $367.04.

Insider Transactions at Applied Materials

In other news, CFO Brice Hill sold 5,000 shares of Applied Materials stock in a transaction that occurred on Tuesday, February 17th. The shares were sold at an average price of $361.21, for a total value of $1,806,050.00. Following the sale, the chief financial officer directly owned 138,565 shares in the company, valued at $50,051,063.65. This trade represents a 3.48% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CAO Adam Sanders sold 534 shares of Applied Materials 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 completion of the sale, the chief accounting officer owned 4,625 shares in the company, valued at $1,753,615. The trade was a 10.35% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 12,003 shares of company stock valued at $4,484,189 in the last ninety days. 0.30% of the stock is currently owned by corporate insiders.

Key Headlines Impacting Applied Materials

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

• Positive Sentiment: Breakthrough product news — Applied introduced new deposition systems targeting the angstrom/2nm era (tools aimed at GAA transistors and advanced logic for AI), which directly address foundry demand for next‑gen nodes and drove the initial rally. Applied Materials Introduces Deposition Systems for Angstrom-Era Logic Chips
• Positive Sentiment: Analyst upgrade/price‑target lift — Susquehanna raised its price target from $435 to $500 and maintained a "positive" rating, implying substantial upside and signaling stronger sell‑side conviction into the product-cycle story. Benzinga
• Positive Sentiment: Institutional/strategist backing — Goldman Sachs and other brokers have listed AMAT among top semiconductor picks, reinforcing the narrative that equipment suppliers will benefit from AI-driven capacity expansion. Goldman Sachs Names Teradyne (TER), Applied Materials (AMAT), AMD (AMD) as Top Semiconductor Picks
• Positive Sentiment: Underlying fundamentals — Applied beat February quarter EPS and revenue estimates and set Q2 FY26 EPS guidance above consensus, keeping margin and cash‑return metrics supportive of the valuation multiple.
• Positive Sentiment: Buy-the-dip thesis — Commentary arguing recent pullbacks in memory and equipment names present buying opportunities (given secular AI demand) has added to tactical buying interest in AMAT. Memory Wipe: The Great TurboQuant Miscalculation (AMAT)
• Neutral Sentiment: Market backdrop — Broader market moves (e.g., easing geopolitical risk / Dow futures swings) and sector rotation into AI and capex beneficiaries have supported momentum but are macro dependent. Dow Jones Futures Fall, Oil Prices Rise After Iran Ceasefire Rally
• Neutral Sentiment: Non-core coverage — Misc. market commentary and ETF/bond stories (not company-specific) are circulating but have limited direct impact on AMAT’s operational outlook. This Fund's Ladder Strategy Expanded With a $4 Million Buy in One 2027 Bond ETF
• Negative Sentiment: Valuation/“too late?” debate — Some pieces question whether AMAT’s large YTD and 1‑year run already price in future growth; investors should weigh near‑term momentum against the higher P/E and potential cyclicality in equipment spending. Is It Too Late To Consider Applied Materials (AMAT) After 177% One Year Surge?

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of AMAT. Old North State Trust LLC bought a new position in shares of Applied Materials during the fourth quarter worth approximately $240,000. Forty three Eighteen Advisors LLC bought a new stake in Applied Materials in the 4th quarter valued at $2,533,000. Fund Advisors of America Inc FL acquired a new position in Applied Materials in the 4th quarter valued at $316,000. World Investment Advisors grew its holdings in Applied Materials by 4.5% in the 4th quarter. World Investment Advisors now owns 82,296 shares of the manufacturing equipment provider's stock valued at $21,149,000 after buying an additional 3,508 shares in the last quarter. Finally, Meadowbrook Advisors Group LLC bought a new position in Applied Materials during the 4th quarter worth $562,000. 80.56% of the stock is owned by institutional investors.

Applied Materials Stock Up 3.1%

The stock has a fifty day moving average price of $349.19 and a two-hundred day moving average price of $285.81. The company has a market cap of $315.71 billion, a price-to-earnings ratio of 40.72, a P/E/G ratio of 1.55 and a beta of 1.64. The company has a quick ratio of 1.94, a current ratio of 2.71 and a debt-to-equity ratio of 0.30.

Applied Materials (NASDAQ:AMAT - Get Free Report) last released its quarterly earnings results on Thursday, February 12th. The manufacturing equipment provider reported $2.38 EPS for the quarter, beating the consensus estimate 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 the consensus estimate of $6.88 billion. During the same period in the prior year, the company posted $2.38 earnings per share. Applied Materials's revenue was down 2.1% compared to the same quarter last year. Applied Materials has set its Q2 2026 guidance at 2.440-2.840 EPS. As a group, sell-side analysts expect that Applied Materials, Inc. will post 9.38 EPS for the current year.

Applied Materials Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, June 11th. Stockholders of record on Thursday, May 21st will be issued a dividend of $0.53 per share. This is a boost from Applied Materials's previous quarterly dividend of $0.46. This represents a $2.12 annualized dividend and a dividend yield of 0.5%. The ex-dividend date of this dividend is Thursday, May 21st. Applied Materials's payout ratio is 18.83%.

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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