Applied Materials (NASDAQ:AMAT) Shares Up 1.3% After Dividend Announcement

Applied Materials, Inc. (NASDAQ:AMAT) shares shot up 1.3% on Friday following a dividend announcement from the company. The stock traded as high as $349.25 and last traded at $341.53. 5,182,045 shares changed hands during mid-day trading, a decline of 35% from the average session volume of 7,961,021 shares. The stock had previously closed at $337.27.

The newly announced dividend which will be paid on Thursday, June 11th. Shareholders of record on Thursday, May 21st will be issued a dividend of $0.53 per share. This represents a $2.12 annualized dividend and a yield of 0.6%. The ex-dividend date of this dividend is Thursday, May 21st. This is a boost from Applied Materials’s previous quarterly dividend of $0.46. Applied Materials’s dividend payout ratio (DPR) is presently 18.83%.

Wall Street Analysts Forecast Growth

A number of equities research analysts have commented on AMAT shares. The Goldman Sachs Group upped their price target on Applied Materials from $310.00 to $390.00 and gave the company a “buy” rating in a research report on Friday, February 13th. Barclays lifted their price objective on Applied Materials from $360.00 to $450.00 and gave the stock an “overweight” rating in a research note on Friday, February 13th. Royal Bank Of Canada set a $430.00 target price on Applied Materials in a report on Friday, February 13th. Cantor Fitzgerald reissued an “overweight” rating and set a $470.00 target price on shares of Applied Materials in a research report on Friday, February 13th. Finally, B. Riley Financial restated a “buy” rating and set a $450.00 price target (up from $400.00) on shares of Applied Materials in a report on Friday, February 13th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-six have given a Buy rating and seven have issued a Hold rating to the company’s stock. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of $363.46.

Applied Materials Price Performance

The stock has a market capitalization of $271.04 billion, a P/E ratio of 34.96, a PEG ratio of 1.54 and a beta of 1.65. The company has a debt-to-equity ratio of 0.30, a quick ratio of 1.94 and a current ratio of 2.71. The business has a fifty day simple moving average of $334.48 and a 200-day simple moving average of $262.48.

Applied Materials (NASDAQ:AMAT) last released its quarterly earnings data on Thursday, February 12th. The manufacturing equipment provider reported $2.38 earnings per share for the quarter, beating the consensus estimate of $2.21 by $0.17. Applied Materials had a net margin of 27.78% and a return on equity of 37.52%. The company had revenue of $7.01 billion during the quarter, compared to analyst estimates of $6.88 billion. During the same quarter in the previous year, the business posted $2.38 EPS. Applied Materials’s revenue for the quarter was down 2.1% compared to the same quarter last year. Applied Materials has set its Q2 2026 guidance at 2.440-2.840 EPS. Sell-side analysts expect that Applied Materials, Inc. will post 9.38 earnings per share for the current fiscal year.

Trending Headlines about Applied Materials

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

• Positive Sentiment: Board-approved 15% increase to the quarterly cash dividend (from $0.46 to $0.53), marking nine consecutive years of raises — signals strong free-cash-flow generation and makes the stock more attractive to income and dividend-growth investors. Article Title
• Positive Sentiment: Planned addition to the S&P 100 (effective March 23) — likely to create incremental buying from index-tracking funds ahead of the effective date. Article Title
• Positive Sentiment: New/strengthened customer R&D partnerships focused on AI memory (long-term R&D tie-up with SK hynix and collaboration with Micron on memory) — supports durable equipment demand for next‑gen DRAM/HBM and AI accelerators. Article Title
• Positive Sentiment: Broader market positioning toward semiconductors/AI: hedge funds and money managers are overweighting semiconductor-capital-equipment names (including AMAT) as AI capex remains a dominant 2026 trade theme. That institutional buying is supporting AMAT multiple and flows. Article Title
• Positive Sentiment: Recent analyst attention and elevated price targets (median ~$415; multiple firms on “Buy/Overweight”) — helps underpin sentiment and provides buying interest on pullbacks. Article Title
• Neutral Sentiment: Elevated retail and search interest reported by Zacks — signals attention but not directionally predictive by itself. Article Title
• Neutral Sentiment: Takeover/industry M&A chatter (e.g., interest around BE Semiconductor Industries involving Lam and Applied) can boost sentiment but is speculative. Article Title
• Negative Sentiment: Macro risk: recent oil/ geopolitical-driven moves hit some chip names (Nvidia, Broadcom, Micron) — a spike in risk or higher energy prices can pressure tech cyclicals, including AMAT. Article Title
• Negative Sentiment: Notable insider sell activity and some institutional reallocations reported (large holders trimming in recent quarters) — could weigh on sentiment if selling persists. Article Title

Insider Activity

In related news, CAO Adam Sanders sold 534 shares of the business’s stock in a transaction dated Tuesday, February 24th. The stock was sold at an average price of $379.16, for a total value of $202,471.44. Following the completion of the sale, the chief accounting officer directly owned 4,625 shares of the company’s stock, valued at $1,753,615. The trade was a 10.35% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, CFO Brice Hill sold 5,000 shares of the company’s stock in a transaction that occurred on Tuesday, February 17th. The stock was sold at an average price of $361.21, for a total value of $1,806,050.00. Following the transaction, the chief financial officer directly owned 138,565 shares in the company, valued at approximately $50,051,063.65. This trade represents a 3.48% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 12,003 shares of company stock worth $4,484,189 in the last three months. Company insiders own 0.30% of the company’s stock.

Hedge Funds Weigh In On Applied Materials

A number of large investors have recently modified their holdings of the company. Cornerstone Financial Management LLC acquired a new position in Applied Materials during the fourth quarter worth $25,000. Marquette Asset Management LLC grew its holdings in shares of Applied Materials by 150.0% during the third quarter. Marquette Asset Management LLC now owns 125 shares of the manufacturing equipment provider’s stock valued at $26,000 after buying an additional 75 shares during the last quarter. Redmont Wealth Advisors LLC acquired a new position in shares of Applied Materials during the third quarter valued at about $26,000. Wilkerson Advisory Group LLC bought a new stake in shares of Applied Materials during the fourth quarter worth about $26,000. Finally, Highline Wealth Partners LLC increased its position in shares of Applied Materials by 48.7% during the fourth quarter. Highline Wealth Partners LLC now owns 116 shares of the manufacturing equipment provider’s stock worth $30,000 after acquiring an additional 38 shares in the last quarter. 80.56% of the stock is currently owned by institutional investors.

About Applied Materials

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.