Applied Materials, Inc. (NASDAQ:AMAT – Get Free Report)’s stock price was down 5.1% during mid-day trading on Friday . The stock traded as low as $497.10 and last traded at $507.18. 12,529,027 shares were traded during trading, an increase of 52% from the average daily volume of 8,247,112 shares. The stock had previously closed at $534.54.
More Applied Materials News
Here are the key news stories impacting Applied Materials this week:
- Positive Sentiment: Record results and strong AI demand: Fiscal Q3 revenue rose 24.8% year over year to $9.12 billion, exceeding the $8.99 billion consensus estimate, while adjusted EPS of $3.50 topped estimates near $3.40. Growth was supported by AI infrastructure, advanced packaging and memory demand. Applied Materials Announces Third Quarter 2026 Results
- Positive Sentiment: Above-consensus Q4 guidance: Management forecast fiscal Q4 revenue of approximately $9.8 billion to $10.8 billion and EPS of $3.82 to $4.22, ahead of analyst expectations. The company also reported a record 50.4% non-GAAP gross margin and said customer planning provides unusually strong visibility into 2027 and beyond. Applied Materials forecasts quarterly revenue above estimates
- Positive Sentiment: Analyst support remains widespread: JPMorgan raised its price target to $660 with an Overweight rating, while Needham maintained Buy with a $740 target. TD Cowen also reaffirmed Buy with a $700 target, suggesting analysts see the pullback as an opportunity if AI-related capital spending continues. Applied Materials Stock Tanks Despite Q3 Beat
- Neutral Sentiment: Options market anticipates a rebound: Barchart derivatives data indicates traders expect AMAT to recover over the coming weeks, although options positioning also reflects elevated near-term volatility. Applied Materials Options Data
- Negative Sentiment: Expectations were too elevated: Investors appeared to view the earnings beat as insufficient after AMAT’s shares more than doubled during the year. Reports cited concerns about the pace of systems growth, margin commentary and guidance relative to the lofty valuation.
- Negative Sentiment: Competition and execution concerns: Analysts noted intensifying competition in wafer-fabrication equipment and questioned whether Applied Materials can grow faster than peers. Some coverage also referenced a GAAP or “whisper” EPS shortfall and investment-related losses, adding to the disappointing reaction despite strong adjusted results. Applied Materials slips as investors seek faster growth
Analysts Set New Price Targets
Several equities analysts have recently issued reports on AMAT shares. TD Cowen reaffirmed a “buy” rating and set a $700.00 price target on shares of Applied Materials in a research note on Friday. Sanford C. Bernstein boosted their price objective on Applied Materials from $675.00 to $700.00 and gave the stock an “outperform” rating in a report on Friday. UBS Group set a $675.00 target price on shares of Applied Materials in a research report on Friday. HSBC reaffirmed a “buy” rating and issued a $683.00 target price on shares of Applied Materials in a research note on Monday, July 27th. Finally, Mizuho lifted their price target on shares of Applied Materials from $540.00 to $650.00 and gave the stock an “outperform” rating in a research report on Wednesday, July 8th. One investment analyst has rated the stock with a Strong Buy rating, twenty-seven have given a Buy rating and seven have issued a Hold rating to the company’s stock. According to MarketBeat.com, Applied Materials presently has an average rating of “Moderate Buy” and an average target price of $624.35.
Applied Materials Price Performance
The company has a debt-to-equity ratio of 0.22, a current ratio of 2.51 and a quick ratio of 1.80. The company’s 50-day moving average price is $563.06 and its 200-day moving average price is $444.45. The company has a market cap of $402.68 billion, a P/E ratio of 47.62, a P/E/G ratio of 1.38 and a beta of 1.61.
Applied Materials (NASDAQ:AMAT – Get Free Report) last posted its quarterly earnings data 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 return on equity of 36.97% and a net margin of 29.31%.The company had revenue of $9.12 billion during the quarter, compared to analysts’ expectations of $8.99 billion. During the same period in the prior year, the firm earned $2.48 earnings per share. Applied Materials’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. As a group, sell-side analysts predict that Applied Materials, Inc. will post 12.22 earnings per share for the current fiscal year.
Applied Materials Dividend Announcement
The company also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Thursday, August 20th will be issued a dividend of $0.53 per share. This represents a $2.12 dividend on an annualized basis and a yield of 0.4%. The ex-dividend date is Thursday, August 20th. Applied Materials’s payout ratio is presently 19.91%.
Insider Buying and Selling
In other Applied Materials news, insider Prabu G. Raja sold 10,000 shares of the business’s stock in a transaction dated Thursday, June 18th. The shares were sold at an average price of $633.53, for a total value of $6,335,300.00. Following the completion of the sale, the insider owned 346,642 shares of the company’s stock, valued at $219,608,106.26. The trade was a 2.80% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, SVP Timothy M. Deane sold 8,621 shares of the stock in a transaction on 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 sale, the senior vice president directly owned 134,631 shares in the company, valued at approximately $79,534,609.56. This trade represents a 6.02% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 278,088 shares of company stock worth $169,654,805 in the last 90 days. 0.30% of the stock is owned by corporate insiders.
Institutional Inflows and Outflows
Several institutional investors have recently modified their holdings of the stock. Brighton Jones LLC boosted its stake in shares of Applied Materials by 28.0% during the fourth quarter. Brighton Jones LLC now owns 12,674 shares of the manufacturing equipment provider’s stock valued at $2,061,000 after purchasing an additional 2,771 shares in the last quarter. Sivia Capital Partners LLC raised its stake in shares of Applied Materials by 26.7% during the second quarter. Sivia Capital Partners LLC now owns 3,225 shares of the manufacturing equipment provider’s stock valued at $590,000 after acquiring an additional 679 shares during the last quarter. Forefront Wealth Partners LLC bought a new stake in shares of Applied Materials in the second quarter worth $410,000. Schnieders Capital Management LLC. raised its position in Applied Materials by 30.1% during the 2nd quarter. Schnieders Capital Management LLC. now owns 15,003 shares of the manufacturing equipment provider’s stock worth $2,747,000 after purchasing an additional 3,469 shares during the last quarter. Finally, Sei Investments Co. lifted its holdings in Applied Materials by 59.3% during the 2nd quarter. Sei Investments Co. now owns 422,694 shares of the manufacturing equipment provider’s stock worth $77,383,000 after buying an additional 157,426 shares during the period. 80.56% of the stock is currently owned by institutional investors and hedge funds.
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.
Featured Articles
- Five stocks we like better than Applied Materials
- Sony and TSMC’s $4.7 Billion Venture Is About More Than Camera Sensors
- Quantum Leaps: Debt-Free as AI Storage Demand Accelerates
- NVIDIA’s $500 Billion GPU Financing Deal Fuels Path Toward $270
- Sandisk’s Margins Look Like Software. Can They Last?
Receive News & Ratings for Applied Materials Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Applied Materials and related companies with MarketBeat.com's FREE daily email newsletter.
-limited-logo-1200x675.png){kind=logo}
