Applied Materials, Inc. (NASDAQ:AMAT) Given Average Rating of “Moderate Buy” by Brokerages

Shares of Applied Materials, Inc. (NASDAQ:AMAT) have been given an average recommendation of “Moderate Buy” by the thirty-five ratings firms that are presently covering the company, MarketBeat.com reports. Eight research analysts have rated the stock with a hold recommendation and twenty-seven have issued a buy recommendation on the company. The average 1 year price target among analysts that have issued ratings on the stock in the last year is $470.1333.

Several equities research analysts recently issued reports on AMAT shares. Barclays raised their target price on shares of Applied Materials from $450.00 to $500.00 and gave the company an “overweight” rating in a research note on Friday, May 15th. Deutsche Bank Aktiengesellschaft raised their target price on shares of Applied Materials from $450.00 to $550.00 and gave the company a “buy” rating in a research note on Friday, May 15th. Royal Bank Of Canada raised their target price on shares of Applied Materials from $500.00 to $520.00 and gave the company an “outperform” rating in a research note on Friday, May 15th. Needham & Company LLC raised their target price on shares of Applied Materials from $440.00 to $530.00 and gave the company a “buy” rating in a research note on Friday, May 15th. Finally, Argus raised their target price on shares of Applied Materials from $420.00 to $500.00 and gave the company a “buy” rating in a research note on Tuesday, May 19th.

Key Stories Impacting Applied Materials

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

• Positive Sentiment: Cantor Fitzgerald reaffirmed its Overweight rating on Applied Materials and raised its price target to $575, reinforcing bullish analyst sentiment and pointing to more upside potential. Applied Materials (NASDAQ:AMAT) Receives Overweight Rating from Cantor Fitzgerald
• Positive Sentiment: Recent coverage highlights AMAT’s blowout quarterly results, higher outlook, and new AI chip equipment partnerships with companies like Broadcom and SCREEN, all of which support expectations for continued demand in semiconductor manufacturing equipment. Assessing Applied Materials (AMAT) Valuation After Earnings Beat And New AI Chip Equipment Partnerships
• Positive Sentiment: CEO Gary Dickerson said the semiconductor industry is in its strongest period ever, with AI driving unprecedented computing demand, which adds to the long-term growth narrative for Applied Materials. This is the greatest time ever for semiconductors, says CEO of key equipment supplier
• Positive Sentiment: AMAT continues to attract bullish commentary from analysts and market commentators as a leading AI semiconductor equipment play, helping sustain momentum in the shares. KLA vs. Applied Materials: Which Chip Equipment Stock Wins Now?
• Neutral Sentiment: The company also presented at Bernstein’s Strategic Decisions Conference, which kept investors focused on management’s outlook but did not add a major new catalyst. Applied Materials, Inc. (AMAT) Presents at Bernstein 42nd Annual Strategic Decisions Conference Transcript
• Negative Sentiment: Recent insider selling by Director Judy Bruner may create a modest headwind, though the sale was small relative to her remaining stake and does not appear to change the broader bullish thesis. Applied Materials director Judy Bruner stock sale

Insider Activity at Applied Materials

In other Applied Materials news, CAO Adam Sanders sold 268 shares of the firm’s stock in a transaction that occurred on Friday, May 22nd. The shares were sold at an average price of $434.22, for a total transaction of $116,370.96. Following the completion of the sale, the chief accounting officer directly owned 4,280 shares in the company, valued at $1,858,461.60. This trade represents a 5.89% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, Director Judy Bruner sold 1,128 shares of the firm’s stock in a transaction that occurred on Tuesday, May 26th. The stock was sold at an average price of $450.00, for a total transaction of $507,600.00. Following the sale, the director owned 26,544 shares of the company’s stock, valued at $11,944,800. This trade represents a 4.08% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 0.30% of the company’s stock.

Institutional Investors Weigh In On Applied Materials

Several hedge funds have recently bought and sold shares of the stock. Private Wealth Management Group LLC boosted its holdings in shares of Applied Materials by 4.9% in the first quarter. Private Wealth Management Group LLC now owns 531 shares of the manufacturing equipment provider’s stock valued at $181,000 after acquiring an additional 25 shares during the period. One Day In July LLC lifted its holdings in shares of Applied Materials by 2.4% during the first quarter. One Day In July LLC now owns 1,089 shares of the manufacturing equipment provider’s stock worth $372,000 after purchasing an additional 26 shares during the period. Pinnacle Bancorp Inc. lifted its holdings in shares of Applied Materials by 1.3% during the first quarter. Pinnacle Bancorp Inc. now owns 2,082 shares of the manufacturing equipment provider’s stock worth $712,000 after purchasing an additional 27 shares during the period. Horst & Graben Wealth Management LLC lifted its holdings in shares of Applied Materials by 2.1% during the first quarter. Horst & Graben Wealth Management LLC now owns 1,304 shares of the manufacturing equipment provider’s stock worth $446,000 after purchasing an additional 27 shares during the period. Finally, Warther Private Wealth LLC lifted its holdings in shares of Applied Materials by 1.5% during the fourth quarter. Warther Private Wealth LLC now owns 1,908 shares of the manufacturing equipment provider’s stock worth $490,000 after purchasing an additional 28 shares during the period. 80.56% of the stock is currently owned by institutional investors and hedge funds.

Applied Materials Trading Up 0.1%

Shares of NASDAQ:AMAT opened at $450.06 on Friday. Applied Materials has a 52-week low of $153.47 and a 52-week high of $462.40. The company has a market capitalization of $357.33 billion, a P/E ratio of 42.26, a price-to-earnings-growth ratio of 1.26 and a beta of 1.66. The company has a 50-day simple moving average of $397.25 and a 200 day simple moving average of $333.49. The company has a debt-to-equity ratio of 0.22, a quick ratio of 1.80 and a current ratio of 2.51.

Applied Materials (NASDAQ:AMAT) last issued its earnings results on Thursday, May 14th. The manufacturing equipment provider reported $2.86 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.68 by $0.18. Applied Materials had a net margin of 29.31% and a return on equity of 36.97%. The business had revenue of $7.91 billion during the quarter, compared to the consensus estimate of $7.68 billion. During the same period last year, the business posted $2.39 EPS. Applied Materials’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. Sell-side analysts forecast that Applied Materials will post 12.02 earnings per share for the current year.

Applied Materials Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, June 11th. Shareholders of record on Thursday, May 21st will be given a dividend of $0.53 per share. This represents a $2.12 annualized dividend and a yield of 0.5%. This is a boost from Applied Materials’s previous quarterly dividend of $0.46. The ex-dividend date is Thursday, May 21st. Applied Materials’s dividend payout ratio (DPR) is 19.91%.

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.