Applied Materials (NASDAQ:AMAT) Shares Up 2.7% - Time to Buy?

Key Points

• Applied Materials shares rose 2.7% to $387.59, though the price remains below its 50-day and 200-day moving averages of $467.37 and $487.88, respectively.
• Analyst sentiment is broadly positive: 30 analysts rate the stock a Buy and nine rate it a Hold, producing a “Moderate Buy” consensus and an average price target of $632.70.
• The company reported quarterly revenue of $9.12 billion and adjusted earnings of $3.50 per share, beating estimates and representing 24.8% year-over-year revenue growth; it also declared a quarterly dividend of $0.53 per share.

Applied Materials, Inc. (NASDAQ:AMAT - Get Free Report) traded up 2.7% during trading on Monday. The stock traded as high as $393.18 and last traded at $387.59. Approximately 6,129,359 shares changed hands during trading, a decline of 22% from the average daily volume of 7,885,900 shares. The stock had previously closed at $377.24.

Analyst Ratings Changes

A number of equities analysts recently issued reports on AMAT shares. Wall Street Zen upgraded Applied Materials from a "hold" rating to a "buy" rating in a report on Saturday, September 26th. B. Riley Financial restated a "buy" rating and set a $700.00 price target (down from $790.00) on shares of Applied Materials in a research note on Friday, August 14th. Deutsche Bank Aktiengesellschaft restated a "buy" rating and set a $605.00 price objective (down from $680.00) on shares of Applied Materials in a report on Friday, August 14th. Citigroup reiterated a "buy" rating and set a $710.00 price objective (up from $550.00) on shares of Applied Materials in a report on Monday, August 3rd. Finally, Royal Bank Of Canada reaffirmed an "outperform" rating and issued a $600.00 price target on shares of Applied Materials in a research report on Wednesday, October 14th. Thirty analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company's stock. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average price target of $632.70.

Applied Materials Stock Performance

The company has a debt-to-equity ratio of 0.20, a current ratio of 2.42 and a quick ratio of 1.79. The company's fifty day moving average price is $467.37 and its 200 day moving average price is $487.88. The company has a market cap of $307.59 billion, a PE ratio of 33.41, a P/E/G ratio of 1.05 and a beta of 1.60.

Applied Materials (NASDAQ:AMAT - Get Free Report) last released its quarterly earnings results on Thursday, August 13th. The manufacturing equipment provider reported $3.50 earnings per share for the quarter, topping the consensus estimate of $3.40 by $0.10. Applied Materials had a net margin of 30.05% and a return on equity of 38.02%. The business had revenue of $9.12 billion for the quarter, compared to analysts' expectations of $8.99 billion. During the same period in the previous year, the company earned $2.48 earnings per share. The firm's revenue for the quarter 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. On average, equities research analysts predict that Applied Materials, Inc. will post 12.79 earnings per share for the current year.

Applied Materials Announces Dividend

The firm also recently announced 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 dividend on an annualized basis and a dividend yield of 0.5%. The ex-dividend date is Thursday, November 19th. Applied Materials's payout ratio is presently 18.28%.

Insider Transactions at Applied Materials

In other Applied Materials news, CAO Adam Sanders sold 725 shares of the business's stock in a transaction on Friday, October 2nd. The stock was sold at an average price of $544.56, for a total value of $394,806.00. Following the transaction, the chief accounting officer owned 3,181 shares of the company's stock, valued at approximately $1,732,245.36. The trade was a 18.56% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Brice Hill sold 7,500 shares of the company's stock in a transaction on Tuesday, August 25th. The shares were sold at an average price of $479.25, for a total value of $3,594,375.00. Following the completion of the transaction, the chief financial officer owned 128,613 shares of the company's stock, valued at $61,637,780.25. This trade represents a 5.51% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 9,225 shares of company stock worth $4,454,181 in the last 90 days. Insiders own 0.30% of the company's stock.

Hedge Funds Weigh In On Applied Materials

Several institutional investors have recently added to or reduced their stakes in the stock. JFS Wealth Advisors LLC raised its stake in shares of Applied Materials by 4.3% in the second quarter. JFS Wealth Advisors LLC now owns 409 shares of the manufacturing equipment provider's stock worth $296,000 after acquiring an additional 17 shares during the last quarter. Innovative Asset Advisors Group LLC raised its position in Applied Materials by 2.1% in the 2nd quarter. Innovative Asset Advisors Group LLC now owns 961 shares of the manufacturing equipment provider's stock worth $695,000 after purchasing an additional 20 shares during the last quarter. Stonebridge Financial Group LLC raised its position in Applied Materials by 2.1% in the 2nd quarter. Stonebridge Financial Group LLC now owns 1,003 shares of the manufacturing equipment provider's stock worth $725,000 after purchasing an additional 21 shares during the last quarter. N.E.W. Advisory Services LLC lifted its holdings in Applied Materials by 5.9% during the 2nd quarter. N.E.W. Advisory Services LLC now owns 377 shares of the manufacturing equipment provider's stock worth $273,000 after buying an additional 21 shares in the last quarter. Finally, IMG Wealth Management Inc. lifted its holdings in Applied Materials by 13.0% during the 2nd quarter. IMG Wealth Management Inc. now owns 183 shares of the manufacturing equipment provider's stock worth $132,000 after buying an additional 21 shares in the last quarter. Institutional investors own 80.56% of the company's stock.

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.

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