Applied Materials, Inc. (NASDAQ:AMAT – Get Free Report) was down 3.8% during mid-day trading on Wednesday. The company traded as low as $445.54 and last traded at $446.63. 8,453,671 shares traded hands during trading, an increase of 7% from the average session volume of 7,867,087 shares. The stock had previously closed at $464.24.
More Applied Materials News
Here are the key news stories impacting Applied Materials this week:
- Positive Sentiment: Long-term investment in semiconductor R&D: Applied Materials opened its $5 billion EPIC Center in Sunnyvale, California, described as the world’s largest semiconductor equipment and process-technology research facility. The center could strengthen the company’s technology leadership and support future sales growth. Applied Materials opens $5B semiconductor innovation center
- Positive Sentiment: Analyst support remains: Needham retained a “buy” rating despite reducing its price target from $740 to $580, implying substantial upside from recent levels. Other coverage continues to describe AMAT as a growth-at-a-reasonable-price stock with a broad portfolio of essential wafer-fabrication equipment.
- Neutral Sentiment: Mixed institutional trading: Thirty-one ETFs added Applied Materials on October 13, while ETFs were reported as net sellers on October 14. The conflicting flows suggest shifting positioning rather than a clear institutional trend. ETFs Are Net Sellers of Applied Materials
- Neutral Sentiment: Sector outlook remains favorable: Comparisons with ASML and Broadcom highlight continued semiconductor capacity expansion and demand from advanced chips and artificial intelligence, but these articles do not provide a new company-specific earnings catalyst.
- Negative Sentiment: Lower price target likely weighs on shares: Needham’s 22% target reduction signals greater near-term caution, even though the firm remains bullish. Recent reports also note that AMAT has fallen about 17.6% since October 5, raising concerns about momentum and the timing of a sales recovery.
- Negative Sentiment: Recent underperformance: Applied Materials declined more than the broader market in the latest reported session, reinforcing concerns about elevated valuation, semiconductor-cycle uncertainty, and continuing selling pressure.
Wall Street Analyst Weigh In
Several research analysts have recently weighed in on AMAT shares. Berenberg Bank upped their price target on shares of Applied Materials from $575.00 to $675.00 and gave the company a “buy” rating in a report on Monday, August 17th. Craig Hallum raised their price objective on shares of Applied Materials from $530.00 to $585.00 and gave the stock a “buy” rating in a report on Friday, August 14th. The Goldman Sachs Group raised their price objective on shares of Applied Materials from $645.00 to $670.00 and gave the stock a “buy” rating in a report on Friday, August 14th. Jefferies Financial Group boosted their price objective on shares of Applied Materials from $510.00 to $770.00 and gave the company a “buy” rating in a research report on Friday, June 26th. Finally, Bank of America reduced their target price on shares of Applied Materials from $720.00 to $650.00 and set a “buy” rating for the company in a research note on Friday, August 14th. One investment analyst has rated the stock with a Strong Buy rating, thirty have given a Buy rating and eight have issued a Hold rating to the company. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $632.70.
Get Our Latest Stock Analysis on Applied Materials
Applied Materials Stock Performance
The company has a quick ratio of 1.79, a current ratio of 2.42 and a debt-to-equity ratio of 0.20. The stock has a 50 day simple moving average of $483.12 and a two-hundred day simple moving average of $485.62. The stock has a market capitalization of $328.16 billion, a P/E ratio of 35.53, a P/E/G ratio of 1.24 and a beta of 1.60.
Applied Materials (NASDAQ:AMAT – Get Free Report) last announced its quarterly earnings data on Thursday, August 13th. The manufacturing equipment provider reported $3.50 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates 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 for the quarter, compared to analysts’ expectations of $8.99 billion. During the same quarter in the prior year, the business posted $2.48 EPS. The business’s 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. On average, equities analysts forecast that Applied Materials, Inc. will post 12.79 EPS for the current fiscal year.
Applied Materials Dividend Announcement
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 dividend of $0.53 per share. This represents a $2.12 annualized dividend and a dividend yield of 0.5%. The ex-dividend date is Thursday, November 19th. Applied Materials’s payout ratio is currently 18.28%.
Insider Buying and Selling
In related news, Director Judy Bruner sold 1,000 shares of the stock in a transaction on Tuesday, September 8th. The stock was sold at an average price of $465.00, for a total value of $465,000.00. Following the sale, the director owned 25,544 shares in the company, valued at approximately $11,877,960. This represents a 3.77% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO Brice Hill sold 7,500 shares of Applied Materials stock in a transaction on Tuesday, August 25th. The stock was sold at an average price of $479.25, for a total transaction of $3,594,375.00. Following the transaction, the chief financial officer directly owned 128,613 shares of the company’s stock, valued at approximately $61,637,780.25. This trade represents a 5.51% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last three months, insiders have sold 9,225 shares of company stock valued at $4,454,181. 0.30% of the stock is owned by insiders.
Hedge Funds Weigh In On Applied Materials
Hedge funds have recently bought and sold shares of the business. JFS Wealth Advisors LLC increased its stake in Applied Materials by 4.3% in the second quarter. JFS Wealth Advisors LLC now owns 409 shares of the manufacturing equipment provider’s stock valued at $296,000 after acquiring an additional 17 shares during the period. Innovative Asset Advisors Group LLC raised its position in Applied Materials by 2.1% in the second 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 in the last quarter. Stonebridge Financial Group LLC lifted its stake in Applied Materials by 2.1% during the second 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 period. N.E.W. Advisory Services LLC lifted its stake in Applied Materials by 5.9% during the second quarter. N.E.W. Advisory Services LLC now owns 377 shares of the manufacturing equipment provider’s stock worth $273,000 after purchasing an additional 21 shares during the period. Finally, IMG Wealth Management Inc. boosted its holdings in Applied Materials by 13.0% during the second quarter. IMG Wealth Management Inc. now owns 183 shares of the manufacturing equipment provider’s stock valued at $132,000 after purchasing an additional 21 shares in the last quarter. 80.56% of the stock is owned by institutional investors.
About Applied Materials
Applied Materials, Inc is a global supplier of equipment, services and software used to manufacture semiconductor chips, flat-panel displays and other advanced electronic products. Its technologies help customers build and enhance materials at the nanoscale, supporting processes such as deposition, etching, inspection, metrology and packaging.
The company’s offerings include semiconductor manufacturing systems, process-control and inspection equipment, and services designed to improve the performance, productivity and longevity of production equipment.
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