Applied Materials (NASDAQ:AMAT) Upgraded at Summit Insights

Summit Insights upgraded shares of Applied Materials (NASDAQ:AMAT) from a hold rating to a buy rating in a research report report published on Friday, Marketbeat reports.

AMAT has been the topic of a number of other research reports. Evercore reiterated an “outperform” rating and issued a $290.00 price objective on shares of Applied Materials in a report on Friday, November 14th. Needham & Company LLC raised their target price on shares of Applied Materials from $390.00 to $440.00 and gave the stock a “buy” rating in a research report on Friday. Jefferies Financial Group upped their price target on shares of Applied Materials from $260.00 to $360.00 and gave the company a “buy” rating in a research report on Monday, December 15th. DZ Bank raised shares of Applied Materials from a “strong sell” rating to a “hold” rating in a research report on Friday, November 14th. Finally, Mizuho upped their target price on shares of Applied Materials from $370.00 to $410.00 and gave the company an “outperform” rating in a report on Friday. Twenty-eight analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company’s stock. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $361.03.

Applied Materials Stock Up 8.1%

Shares of NASDAQ AMAT opened at $354.91 on Friday. The stock 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 current ratio of 2.71, a quick ratio of 1.94 and a debt-to-equity ratio of 0.30. Applied Materials has a 12-month low of $123.74 and a 12-month high of $376.32. The business’s fifty day simple moving average is $295.20 and its 200-day simple moving average is $237.05.

Applied Materials (NASDAQ:AMAT) last released its earnings results 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. The firm had revenue of $7.01 billion during the quarter, compared to analysts’ expectations of $6.88 billion. Applied Materials had a return on equity of 37.52% and a net margin of 27.78%.Applied Materials’s revenue for the quarter was down 2.1% on a year-over-year basis. During the same period in the previous year, the firm posted $2.38 EPS. Applied Materials has set its Q2 2026 guidance at 2.440-2.840 EPS. As a group, equities analysts predict that Applied Materials will post 9.38 EPS for the current fiscal year.

Applied Materials Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, March 12th. Investors 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 (DPR) is presently 18.83%.

Insider Activity at Applied Materials

In related news, SVP Teri A. Little sold 4,000 shares of the company’s stock in a transaction on 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 owned 84,351 shares of the company’s stock, valued at $20,095,782.24. This represents a 4.53% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, CAO Adam Sanders sold 609 shares of the stock in a transaction on Monday, December 1st. The stock was sold at an average price of $255.53, for a total value of $155,617.77. Following the completion of the transaction, the chief accounting officer owned 4,413 shares of the company’s stock, valued at $1,127,653.89. The trade was a 12.13% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 8,609 shares of company stock valued at $2,044,898 over the last three months. Insiders own 0.30% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Brighton Jones LLC raised its position in shares of Applied Materials by 28.0% during the 4th quarter. Brighton Jones LLC now owns 12,674 shares of the manufacturing equipment provider’s stock worth $2,061,000 after purchasing an additional 2,771 shares during the last quarter. Sivia Capital Partners LLC increased its position in 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 worth $590,000 after buying an additional 679 shares in the last quarter. Forefront Wealth Partners LLC acquired a new position in shares of Applied Materials in the second quarter worth $410,000. Mutual Advisors LLC raised its holdings in shares of Applied Materials by 3.1% in the second quarter. Mutual Advisors LLC now owns 6,100 shares of the manufacturing equipment provider’s stock worth $1,133,000 after acquiring an additional 186 shares during the last quarter. Finally, Rosenberg Matthew Hamilton lifted its position in shares of Applied Materials by 44.3% in the second quarter. Rosenberg Matthew Hamilton now owns 456 shares of the manufacturing equipment provider’s stock valued at $83,000 after acquiring an additional 140 shares in the last quarter. 80.56% of the stock is currently owned by institutional investors and hedge funds.

Applied Materials News Summary

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.