Applied Materials, Inc. (NASDAQ:AMAT – Get Free Report) shot up 5.5% during mid-day trading on Tuesday . The stock traded as high as $549.67 and last traded at $546.62. 7,862,167 shares were traded during trading, a decline of 5% from the average daily volume of 8,292,550 shares. The stock had previously closed at $518.21.
Applied Materials News Summary
Here are the key news stories impacting Applied Materials this week:
- Positive Sentiment: AI-driven semiconductor rally: Semiconductor ETFs surged as investors returned to the AI trade, improving sentiment toward equipment makers such as Applied Materials. The sector-wide move is likely a primary reason AMAT shares have been trading higher. Semiconductor ETFs Surge up to 19% in Huge Rally as the AI Trade Ramps Back Up
- Positive Sentiment: Potential earnings beat: Analysts highlight AMAT’s strong history of exceeding quarterly estimates and say its current earnings indicators point to another potential beat. That is supporting optimism ahead of the company’s next report. Will Applied Materials (AMAT) Beat Estimates Again in Its Next Earnings Report?
- Positive Sentiment: Solid operating momentum: Applied Materials’ latest reported quarter exceeded consensus on both earnings and revenue, with revenue increasing year over year. Its profitability and forecast for the current quarter provide fundamental support for the stock, particularly as AI-related chip and advanced-packaging demand remains strong.
- Neutral Sentiment: Recent outperformance: AMAT gained in the prior trading session and outperformed the broader market, indicating improving short-term momentum. The move also raises the importance of upcoming results because the stock’s valuation already reflects considerable growth expectations. Applied Materials (AMAT) Outperforms Broader Market: What You Need to Know
- Negative Sentiment: China competition risk: Semiconductor stocks recently weakened on fears that increasing Chinese competition could pressure pricing, market share and demand for some U.S. equipment suppliers. This remains a sector-level risk for AMAT. Semiconductor Stocks Sink Over Fears of Increased Competition From China
- Negative Sentiment: Valuation and earnings risk: One analyst maintained a favorable view of AMAT’s fundamentals but downgraded the stock ahead of earnings, suggesting that strong results may already be reflected in the share price and that any guidance shortfall could trigger volatility. Applied Materials: Strong Fundamentals, But I’m Downgrading Ahead of Earnings
Analysts Set New Price Targets
Several research analysts have weighed in on the stock. Zacks Research upgraded shares of Applied Materials from a “hold” rating to a “strong-buy” rating in a research report on Wednesday, July 1st. Wall Street Zen downgraded shares of Applied Materials from a “buy” rating to a “hold” rating in a research report on Saturday. Bank of America upped their price objective on Applied Materials from $540.00 to $720.00 and gave the stock a “buy” rating in a research note on Tuesday, June 23rd. Truist Financial set a $575.00 target price on Applied Materials in a research report on Thursday, May 28th. Finally, Deutsche Bank Aktiengesellschaft upped their price target on Applied Materials from $450.00 to $550.00 and gave the stock a “buy” rating in a research report on Friday, May 15th. One research analyst has rated the stock with a Strong Buy rating, twenty-seven have assigned a Buy rating and six have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $603.23.
Applied Materials Trading Up 5.5%
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 stock has a fifty day simple moving average of $552.58 and a 200 day simple moving average of $432.35. The firm has a market capitalization of $433.99 billion, a P/E ratio of 51.33, a PEG ratio of 1.29 and a beta of 1.61.
Applied Materials (NASDAQ:AMAT – Get Free Report) last announced its quarterly earnings data on Thursday, May 14th. The manufacturing equipment provider reported $2.86 EPS for the quarter, beating the consensus estimate of $2.68 by $0.18. Applied Materials had a return on equity of 36.97% and a net margin of 29.31%.The business had revenue of $7.91 billion for the quarter, compared to the consensus estimate of $7.68 billion. During the same period in the previous year, the business earned $2.39 earnings per share. The business’s revenue was up 11.4% on a year-over-year basis. Applied Materials has set its Q3 2026 guidance at 3.160-3.560 EPS. As a group, research analysts forecast that Applied Materials, Inc. will post 12.14 EPS for the current year.
Applied Materials Announces Dividend
The business also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Thursday, August 20th will be paid a dividend of $0.53 per share. This represents a $2.12 annualized dividend and a yield of 0.4%. The ex-dividend date of this dividend is Thursday, August 20th. Applied Materials’s dividend payout ratio (DPR) is presently 19.91%.
Insider Buying and Selling
In other news, SVP Timothy M. Deane sold 8,621 shares of the firm’s stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $590.76, for a total transaction of $5,092,941.96. Following the completion of the transaction, the senior vice president owned 134,631 shares in the company, valued at $79,534,609.56. This trade represents a 6.02% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, SVP Omkaram Nalamasu sold 24,263 shares of Applied Materials stock in a transaction dated Tuesday, June 16th. The stock was sold at an average price of $593.43, for a total value of $14,398,392.09. Following the completion of the sale, the senior vice president directly owned 146,916 shares in the company, valued at $87,184,361.88. This trade represents a 14.17% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 278,088 shares of company stock worth $169,654,805 in the last 90 days. 0.30% of the stock is owned by company insiders.
Hedge Funds Weigh In On Applied Materials
Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Capital Research Global Investors grew its position in Applied Materials by 119.8% in the fourth quarter. Capital Research Global Investors now owns 32,707,049 shares of the manufacturing equipment provider’s stock worth $8,405,458,000 after acquiring an additional 17,829,377 shares in the last quarter. Norges Bank purchased a new stake in Applied Materials during the fourth quarter valued at approximately $2,858,543,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its stake in shares of Applied Materials by 617.2% in the 3rd quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 9,129,483 shares of the manufacturing equipment provider’s stock valued at $1,869,170,000 after purchasing an additional 7,856,576 shares during the last quarter. Auto Owners Insurance Co lifted its stake in shares of Applied Materials by 25,824.4% in the 4th quarter. Auto Owners Insurance Co now owns 3,370,167 shares of the manufacturing equipment provider’s stock valued at $86,610,000 after purchasing an additional 3,357,167 shares during the last quarter. Finally, Coatue Management LLC boosted its holdings in shares of Applied Materials by 78.7% in the 4th quarter. Coatue Management LLC now owns 5,984,332 shares of the manufacturing equipment provider’s stock worth $1,537,913,000 after purchasing an additional 2,635,284 shares during the period. 80.56% of the stock is owned by institutional investors.
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.
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