B. Riley Financial Reiterates "Buy" Rating for Applied Materials (NASDAQ:AMAT)

Key Points

• B. Riley Financial reiterated its “Buy” rating on Applied Materials but lowered its price target from $790 to $700, still implying 37.36% upside from the prior close. Analysts overall maintain a “Moderate Buy” consensus with an average target of $607.42.
• Applied Materials reported quarterly revenue of $9.12 billion, up 24.8% year over year, and EPS of $3.50, exceeding expectations. The company also issued stronger-than-expected fourth-quarter guidance, supported by demand tied to AI infrastructure and advanced chips.
• Despite the strong results, shares fell 4.7% to $509.59 as investors questioned whether growth and competitive positioning justify the stock’s steep rally. Recent insider selling and concerns about semiconductor capital-spending durability remain additional risks.

Applied Materials (NASDAQ:AMAT - Get Free Report)'s stock had its "buy" rating reiterated by equities researchers at B. Riley Financial in a research report issued to clients and investors on Friday,Benzinga reports. They currently have a $700.00 target price on the manufacturing equipment provider's stock, down from their prior target price of $790.00. B. Riley Financial's price objective indicates a potential upside of 37.36% from the company's previous close.

A number of other research firms have also commented on AMAT. HC Wainwright set a $850.00 price target on Applied Materials in a research report on Monday, June 29th. TD Cowen upped their target price on shares of Applied Materials from $525.00 to $700.00 and gave the stock a "buy" rating in a research note on Thursday, July 9th. Wells Fargo & Company increased their target price on shares of Applied Materials from $715.00 to $740.00 and gave the company an "overweight" rating in a report on Friday, June 26th. Citigroup restated a "buy" rating on shares of Applied Materials in a report on Monday, August 3rd. Finally, Wall Street Zen downgraded shares of Applied Materials from a "buy" rating to a "hold" rating in a research report on Saturday, August 1st. One analyst has rated the stock with a Strong Buy rating, twenty-six have assigned a Buy rating and eight have assigned a Hold rating to the stock. According to MarketBeat.com, Applied Materials presently has a consensus rating of "Moderate Buy" and an average price target of $607.42.

Applied Materials Stock Down 4.7%

AMAT stock traded down $24.95 during mid-day trading on Friday, reaching $509.59. 4,164,252 shares of the company traded hands, compared to its average volume of 8,187,103. 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 moving average price is $563.06 and its 200 day moving average price is $444.45. The stock has a market cap of $404.60 billion, a price-to-earnings ratio of 47.93, a P/E/G ratio of 1.38 and a beta of 1.61. Applied Materials has a fifty-two week low of $154.46 and a fifty-two week high of $739.67.

Applied Materials (NASDAQ:AMAT - Get Free Report) last issued its quarterly earnings data 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 36.97% and a net margin of 29.31%.The firm had revenue of $9.12 billion during the quarter, compared to the consensus estimate of $8.99 billion. During the same period in the prior year, the business posted $2.48 earnings per share. The company's quarterly revenue was up 24.8% compared to the same quarter last year. Applied Materials has set its Q4 2026 guidance at 3.820-4.220 EPS. As a group, equities research analysts predict that Applied Materials will post 12.22 EPS for the current fiscal year.

Insider Activity at Applied Materials

In related news, SVP Timothy M. Deane sold 8,621 shares of Applied Materials stock in a transaction dated 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 completion of the sale, the senior vice president owned 134,631 shares of the company's stock, valued at approximately $79,534,609.56. This trade represents a 6.02% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, insider Prabu G. Raja sold 50,000 shares of the business's stock in a transaction dated Thursday, June 4th. The shares were sold at an average price of $505.28, for a total value of $25,264,000.00. Following the completion of the sale, the insider owned 356,642 shares in the company, valued at $180,204,069.76. This represents a 12.30% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 278,088 shares of company stock worth $169,654,805 in the last three months. Corporate insiders own 0.30% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the business. Harborfront Financial Group LLC purchased a new stake in Applied Materials during the 2nd quarter worth about $27,000. BOK Financial Private Wealth Inc. purchased a new position in Applied Materials during the 2nd quarter valued at about $41,000. Financial Freedom LLC bought a new stake in shares of Applied Materials during the first quarter valued at about $28,000. Elevation Wealth Partners LLC lifted its holdings in shares of Applied Materials by 34.8% in the second quarter. Elevation Wealth Partners LLC now owns 93 shares of the manufacturing equipment provider's stock worth $67,000 after buying an additional 24 shares in the last quarter. Finally, Cornerstone Financial Management LLC purchased a new position in Applied Materials during the fourth quarter valued at approximately $25,000. 80.56% of the stock is currently owned by hedge funds and other institutional investors.

Trending Headlines about Applied Materials

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

• Positive Sentiment: Applied Materials reported record quarterly revenue of approximately $9.12 billion, up 24.8% year over year, while adjusted earnings of $3.50 per share exceeded the $3.40 consensus estimate. Gross margin reached a record 50.4%, supported by strong demand for equipment used in AI infrastructure and advanced chips. Applied Materials Announces Third Quarter 2026 Results
• Positive Sentiment: Management issued better-than-expected fourth-quarter guidance, projecting revenue of $9.8 billion to $10.8 billion versus a $9.5 billion consensus forecast, and EPS of $3.82 to $4.22 versus expectations of $3.65. Executives also indicated that AI-related demand provides unusually strong visibility into another potential record year in 2027. Applied Materials forecasts quarterly revenue above estimates
• Positive Sentiment: Needham reaffirmed its buy rating and set a $740 price target, implying significant upside from the reference price. Analysts continue to view Applied Materials as a key beneficiary of semiconductor manufacturers’ AI-related capital spending. Needham rating update
• Neutral Sentiment: Investors are likely to monitor equipment orders, DRAM and advanced-packaging demand, China exposure, and whether AI-related capital expenditures remain durable over the next several quarters. These metrics may determine whether the pullback is temporary or signals a broader semiconductor-cycle concern. Key metrics after earnings
• Negative Sentiment: Despite the earnings and guidance beats, shares fell because results did not clear an exceptionally high bar following a sharp rally. Investors questioned whether Applied Materials is growing faster than competitors and remain alert to intensifying competition, potential margin pressure, and a possible peak in the semiconductor capital-spending cycle. Applied Materials slips as investors seek faster growth

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.

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.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source