Applied Materials’ (AMAT) Buy Rating Reiterated at B. Riley Securities

B. Riley Securities restated their buy rating on shares of Applied Materials (NASDAQ:AMAT) in a research note issued to investors on Friday morning,Benzinga reports. B. Riley Securities currently has a $450.00 price objective on the manufacturing equipment provider’s stock, up from their previous price objective of $400.00.

AMAT has been the subject of several other reports. KGI Securities raised shares of Applied Materials to an “outperform” rating and set a $425.00 price objective for the company in a report on Friday. DZ Bank raised shares of Applied Materials from a “strong sell” rating to a “hold” rating in a research report on Friday, November 14th. Barclays reissued an “overweight” rating and set a $450.00 price target on shares of Applied Materials in a report on Friday. Sanford C. Bernstein reaffirmed a “market perform” rating and issued a $325.00 price objective on shares of Applied Materials in a report on Monday, January 12th. Finally, Cantor Fitzgerald reiterated an “overweight” rating and set a $350.00 price objective on shares of Applied Materials in a research report on Tuesday, December 16th. Twenty-eight equities research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company. Based on data from MarketBeat.com, Applied Materials currently has an average rating of “Moderate Buy” and a consensus target price of $361.03.

Applied Materials Trading Up 8.1%

Shares of NASDAQ:AMAT opened at $354.91 on Friday. The company has a market cap of $281.70 billion, a P/E ratio of 36.33, a PEG ratio of 3.13 and a beta of 1.70. The company has a debt-to-equity ratio of 0.30, a current ratio of 2.71 and a quick ratio of 1.94. Applied Materials has a 1 year low of $123.74 and a 1 year high of $376.32. The stock’s fifty day moving average price is $295.20 and its 200-day moving average price is $237.05.

Applied Materials (NASDAQ:AMAT) last released its quarterly earnings data on Thursday, February 12th. The manufacturing equipment provider reported $2.38 EPS for the quarter, topping the consensus estimate of $2.19 by $0.19. Applied Materials had a return on equity of 37.52% and a net margin of 27.78%.The company had revenue of $7.01 billion during the quarter, compared to the consensus estimate of $6.88 billion. During the same period last year, the company earned $2.38 EPS. Applied Materials’s revenue for the quarter was down 2.1% on a year-over-year basis. Applied Materials has set its Q2 2026 guidance at 2.440-2.840 EPS. Sell-side analysts expect that Applied Materials will post 9.38 earnings per share for the current year.

Applied Materials Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, March 12th. Shareholders of record on Thursday, February 19th will be given a $0.46 dividend. The ex-dividend date is Thursday, February 19th. This represents a $1.84 dividend on an annualized basis and a yield of 0.5%. Applied Materials’s dividend payout ratio is presently 18.83%.

Insider Transactions at Applied Materials

In other news, SVP Teri A. Little sold 4,000 shares of Applied Materials stock in a transaction dated Tuesday, November 25th. The stock was sold at an average price of $238.24, for a total transaction of $952,960.00. Following the transaction, the senior vice president directly owned 84,351 shares of the company’s stock, valued at $20,095,782.24. The trade was a 4.53% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CAO Adam Sanders sold 609 shares of the business’s stock in a transaction that occurred on Monday, December 1st. The shares were sold at an average price of $255.53, for a total value of $155,617.77. Following the transaction, the chief accounting officer owned 4,413 shares of the company’s stock, valued at approximately $1,127,653.89. This trade represents a 12.13% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 8,609 shares of company stock worth $2,044,898. Insiders own 0.30% of the company’s stock.

Institutional Trading of Applied Materials

Several institutional investors and hedge funds have recently modified their holdings of AMAT. Tradition Wealth Management LLC raised its holdings in Applied Materials by 3.1% during the fourth quarter. Tradition Wealth Management LLC now owns 1,031 shares of the manufacturing equipment provider’s stock valued at $265,000 after acquiring an additional 31 shares during the period. Hoxton Planning & Management LLC boosted its stake in shares of Applied Materials by 1.4% in the fourth quarter. Hoxton Planning & Management LLC now owns 2,208 shares of the manufacturing equipment provider’s stock worth $567,000 after acquiring an additional 31 shares during the period. Godsey & Gibb Inc. grew its position in shares of Applied Materials by 2.6% during the fourth quarter. Godsey & Gibb Inc. now owns 1,298 shares of the manufacturing equipment provider’s stock worth $334,000 after purchasing an additional 33 shares in the last quarter. Family Capital Management Inc. raised its stake in Applied Materials by 0.8% during the 4th quarter. Family Capital Management Inc. now owns 4,227 shares of the manufacturing equipment provider’s stock valued at $1,086,000 after purchasing an additional 33 shares during the period. Finally, Denali Advisors LLC lifted its holdings in Applied Materials by 0.7% in the 4th quarter. Denali Advisors LLC now owns 4,582 shares of the manufacturing equipment provider’s stock worth $1,178,000 after purchasing an additional 34 shares in the last quarter. 80.56% of the stock is currently owned by institutional investors.

Key Stories Impacting Applied Materials

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

• Positive Sentiment: Q1 results beat consensus — EPS of $2.38 topped estimates and revenue of $7.01B beat expectations, evidence that services and AI-related demand are offsetting cyclical headwinds. This beat is the primary catalyst for the rally. Applied Materials Q1 Earnings Beat Estimates, Revenues Fall Y/Y
• Positive Sentiment: Strong guidance and AI-driven order cadence — management set Q2 EPS and revenue guidance above Street consensus and highlighted surging orders tied to AI processors and tightening memory demand, supporting a view of sustained equipment spending. Applied Materials jumps as AI demand drives chipmaking tool orders
• Positive Sentiment: Analyst upgrades and price-target increases — multiple firms raised ratings/targets (examples cited include Needham, Mizuho, Citigroup, B. Riley), which amplifies buying momentum and reduces near-term downside from sell-side skepticism.
• Neutral Sentiment: Regulatory settlement resolved — Applied reached a $252.5M civil settlement with the U.S. Department of Commerce over prior export issues; DOJ and SEC closed related probes without action. The payment is a one-time cost but it removes regulatory overhang going forward. Applied Materials Reaches Resolution with the U.S. Department of Commerce
• Negative Sentiment: Valuation concerns and bear case commentary — some analysts and op-eds argue the stock’s run has left limited upside and warn of pricey multiples; this creates the risk of profit-taking if future execution or guidance lags. Applied Materials: Little Opportunity Left After A Monstrous Run

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.