Applied Materials, Inc. (AMAT) - What Are Investment Firms Thinking About This Stock?

Key Points

• Analysts remain broadly bullish: Applied Materials has a “Moderate Buy” consensus from 39 analysts, with 30 buy ratings and nine holds. The average 12-month price target is $632.70.
• Growth initiatives support the outlook: AMAT plans to increase its stake in advanced-packaging equipment maker Besi to about 20%, while analysts highlighted its roughly 40% margin ambition and raised earnings estimates.
• Risks remain centered on valuation and AI spending: Some firms lowered price targets or adopted neutral ratings, citing potential cooling in AI enthusiasm and semiconductor capital expenditures. Institutional investors own approximately 80.6% of the stock.

Applied Materials, Inc. (NASDAQ:AMAT - Get Free Report) has been given a consensus rating of "Moderate Buy" by the thirty-nine analysts that are covering the stock, Marketbeat reports. Nine equities research analysts have rated the stock with a hold recommendation and thirty have assigned a buy recommendation to the company. The average 1 year target price among analysts that have covered the stock in the last year is $632.70.

A number of research firms have recently commented on AMAT. Zacks Research downgraded Applied Materials from a "strong-buy" rating to a "hold" rating in a report on Thursday, October 15th. William Blair assumed coverage on Applied Materials in a report on Tuesday, August 11th. They issued a "market perform" rating on the stock. B. Riley Financial reissued a "buy" rating and set a $700.00 price target (down from $790.00) on shares of Applied Materials in a research report on Friday, August 14th. New Street Research lowered their price target on Applied Materials from $580.00 to $525.00 and set a "neutral" rating for the company in a research report on Friday, August 14th. Finally, Berenberg Bank upped their price target on Applied Materials from $575.00 to $675.00 and gave the stock a "buy" rating in a research note on Monday, August 17th.

More Applied Materials News

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

• Positive Sentiment: Expanded Besi investment strengthens advanced-packaging strategy. Applied Materials agreed to increase its stake in Besi to approximately 20% through an accelerated share purchase. The investment gives AMAT deeper exposure to semiconductor assembly and advanced-packaging equipment, areas expected to benefit from increasingly complex chips and AI infrastructure. Applied Materials to Increase its Strategic Investment in BE Semiconductor Industries
• Positive Sentiment: Margin expansion remains a key bullish theme. Coverage highlighted investor focus on Applied Materials’ ambition to achieve roughly 40% margins. Progress toward that goal could support earnings growth and reinforce the company’s premium valuation. Applied Materials Stocks Gain With 40% Margin Ambition in Focus
• Positive Sentiment: Analyst earnings estimates were raised. Erste Group Bank analysts increased their earnings expectations for AMAT, providing an additional positive signal for the semiconductor-equipment maker’s profit outlook. Erste Group Bank Analysts Raise Earnings Estimates for AMAT
• Neutral Sentiment: Market coverage noted that Applied Materials outperformed the broader market during the latest session, but the report offered limited new fundamental information. Applied Materials Surpasses Market Returns
• Negative Sentiment: AI-spending and valuation risks remain. Bearish commentary argued that cooling enthusiasm toward AI and a potential slowdown in semiconductor capital expenditures could pressure equipment demand, although AMAT’s durable long-term growth prospects may limit the downside. Applied Materials’ Meltdown Is a Gift as Durable Capex Meets Cooling AI Sentiments

Insider Transactions at Applied Materials

In related news, CAO Adam Sanders sold 725 shares of the stock in a transaction that occurred on Friday, October 2nd. The shares were sold at an average price of $544.56, for a total transaction of $394,806.00. Following the completion of the sale, the chief accounting officer owned 3,181 shares of the company's stock, valued at approximately $1,732,245.36. This represents a 18.56% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Judy Bruner sold 1,000 shares of the firm's stock in a transaction that occurred on Tuesday, September 8th. The shares were sold at an average price of $465.00, for a total transaction of $465,000.00. Following the completion of the transaction, the director owned 25,544 shares in the company, valued at $11,877,960. The trade was a 3.77% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 9,225 shares of company stock worth $4,454,181. 0.30% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Applied Materials

Several institutional investors have recently bought and sold shares of the business. BlackRock Inc. raised its stake in shares of Applied Materials by 1.6% in the 2nd quarter. BlackRock Inc. now owns 80,212,518 shares of the manufacturing equipment provider's stock valued at $57,993,650,000 after acquiring an additional 1,237,685 shares during the period. State Street Corp boosted its position in Applied Materials by 85.4% during the 2nd quarter. State Street Corp now owns 69,525,842 shares of the manufacturing equipment provider's stock worth $50,267,184,000 after purchasing an additional 32,018,892 shares during the period. Amundi boosted its position in Applied Materials by 19.0% during the 2nd quarter. Amundi now owns 7,808,207 shares of the manufacturing equipment provider's stock worth $5,645,344,000 after purchasing an additional 1,246,876 shares during the period. Van ECK Associates Corp boosted its position in Applied Materials by 16.2% during the 2nd quarter. Van ECK Associates Corp now owns 7,713,599 shares of the manufacturing equipment provider's stock worth $5,576,932,000 after purchasing an additional 1,073,879 shares during the period. Finally, Bank of America Corp DE acquired a new stake in Applied Materials in the 2nd quarter valued at $5,252,863,000. 80.56% of the stock is currently owned by hedge funds and other institutional investors.

Applied Materials Stock Up 2.7%

AMAT stock opened at $387.59 on Tuesday. The stock has a market capitalization of $307.59 billion, a P/E ratio of 33.41, a PEG ratio of 1.05 and a beta of 1.60. The company has a debt-to-equity ratio of 0.20, a quick ratio of 1.79 and a current ratio of 2.42. Applied Materials has a one year low of $203.40 and a one year high of $739.67. The company has a 50 day moving average price of $468.42 and a two-hundred day moving average price of $440.96.

Applied Materials (NASDAQ:AMAT - Get Free Report) last issued its quarterly earnings results on Thursday, August 13th. The manufacturing equipment provider reported $3.50 earnings per share for the quarter, beating the consensus estimate of $3.40 by $0.10. Applied Materials had a return on equity of 38.02% and a net margin of 30.05%. The company had revenue of $9.12 billion during the quarter, compared to the consensus estimate of $8.99 billion. During the same period in the previous year, the firm posted $2.48 EPS. Applied Materials's revenue was up 24.8% on a year-over-year basis. Applied Materials has set its Q4 2026 guidance at 3.820-4.220 EPS. As a group, sell-side analysts expect that Applied Materials will post 12.79 EPS for the current year.

Applied Materials Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Thursday, November 19th will be paid a $0.53 dividend. This represents a $2.12 annualized dividend and a dividend yield of 0.5%. The ex-dividend date of this dividend is Thursday, November 19th. Applied Materials's payout ratio is currently 18.28%.

About Applied Materials

Applied Materials, Inc is a technology company that supplies equipment, services and software used to manufacture semiconductors and advanced displays. Its products help customers fabricate the integrated circuits and other components used in computers, mobile devices, data centers, automobiles and a range of connected technologies.

The company's offerings include systems for materials engineering, wafer fabrication, inspection and process control, along with equipment and services designed to improve manufacturing productivity and yield.

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.