Applied Materials (NASDAQ:AMAT) Given New $647.00 Price Target at Morgan Stanley

Applied Materials (NASDAQ:AMAT) had its price objective raised by Morgan Stanley from $502.00 to $647.00 in a research report sent to investors on Monday morning, MarketBeat Ratings reports. They currently have an equal weight rating on the manufacturing equipment provider’s stock.

A number of other analysts also recently issued reports on the stock. Cantor Fitzgerald raised their price target on shares of Applied Materials from $650.00 to $850.00 and gave the company an “overweight” rating in a report on Monday, June 29th. UBS Group increased their price objective on shares of Applied Materials from $515.00 to $570.00 and gave the company a “buy” rating in a research report on Wednesday, June 10th. Truist Financial set a $575.00 target price on shares of Applied Materials in a report on Thursday, May 28th. Stifel Nicolaus set a $530.00 target price on shares of Applied Materials in a research report on Friday, May 15th. Finally, TD Cowen boosted their target price on shares of Applied Materials from $450.00 to $525.00 and gave the company a “buy” rating in a research note on Friday, May 15th. One investment analyst has rated the stock with a Strong Buy rating, twenty-seven have assigned a Buy rating and six have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $569.65.

Applied Materials Price Performance

Shares of NASDAQ AMAT opened at $544.74 on Monday. The company has a 50 day moving average of $499.51 and a 200 day moving average of $391.80. The company has a quick ratio of 1.80, a current ratio of 2.51 and a debt-to-equity ratio of 0.22. Applied Materials has a twelve month low of $154.46 and a twelve month high of $739.67. The firm has a market cap of $432.50 billion, a P/E ratio of 51.08, a PEG ratio of 1.68 and a beta of 1.57.

Applied Materials (NASDAQ:AMAT) last posted its quarterly earnings results on Thursday, May 14th. The manufacturing equipment provider reported $2.86 earnings per share for the quarter, topping the consensus estimate of $2.68 by $0.18. Applied Materials had a return on equity of 36.97% and a net margin of 29.31%.The firm had revenue of $7.91 billion during the quarter, compared to analysts’ expectations of $7.68 billion. During the same quarter in the previous year, the business earned $2.39 earnings per share. The company’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. As a group, research analysts expect that Applied Materials will post 12.11 EPS for the current fiscal year.

Applied Materials Announces Dividend

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 $0.53 dividend. This represents a $2.12 annualized dividend and a yield of 0.4%. The ex-dividend date of this dividend is Thursday, August 20th. Applied Materials’s dividend payout ratio is currently 19.91%.

Insiders Place Their Bets

In other Applied Materials news, SVP Timothy M. Deane sold 8,621 shares of the stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $590.76, for a total transaction of $5,092,941.96. Following the completion of the sale, the senior vice president directly owned 134,631 shares of the company’s stock, valued at $79,534,609.56. This trade represents a 6.02% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, CEO Gary E. Dickerson sold 71,727 shares of the company’s stock in a transaction on Tuesday, June 16th. The stock was sold at an average price of $593.75, for a total transaction of $42,587,906.25. Following the transaction, the chief executive officer owned 1,695,164 shares of the company’s stock, valued at approximately $1,006,503,625. This represents a 4.06% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 278,088 shares of company stock worth $169,654,805 over the last ninety days. 0.30% of the stock is owned by company insiders.

Institutional Trading of Applied Materials

Several hedge funds have recently modified their holdings of the company. Vanguard Group Inc. increased its position in Applied Materials by 0.4% in the fourth quarter. Vanguard Group Inc. now owns 76,779,340 shares of the manufacturing equipment provider’s stock worth $19,731,523,000 after purchasing an additional 330,197 shares during the last quarter. Capital Research Global Investors lifted its position in Applied Materials by 119.8% during the fourth quarter. Capital Research Global Investors now owns 32,707,049 shares of the manufacturing equipment provider’s stock valued at $8,405,458,000 after purchasing an additional 17,829,377 shares during the last quarter. Ameriprise Financial Inc. lifted its position in Applied Materials by 40.1% during the third quarter. Ameriprise Financial Inc. now owns 12,520,114 shares of the manufacturing equipment provider’s stock valued at $2,563,376,000 after purchasing an additional 3,583,751 shares during the last quarter. Morgan Stanley grew its stake in shares of Applied Materials by 3.4% in the 4th quarter. Morgan Stanley now owns 11,470,835 shares of the manufacturing equipment provider’s stock worth $2,947,891,000 after buying an additional 373,012 shares in the last quarter. Finally, Norges Bank purchased a new position in shares of Applied Materials in the 4th quarter worth $2,858,543,000. 80.56% of the stock is owned by hedge funds and other institutional investors.

Applied Materials News Summary

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

• Positive Sentiment: Goldman Sachs raised its price target on Applied Materials to $645, reinforcing a bullish view on the company and helping fuel the semiconductor rally. 2 Chip Stocks Driving Today’s Rally With Lofty Bull Notes
• Positive Sentiment: Morgan Stanley increased its price target on AMAT from $502 to $647, while keeping an equal-weight rating, signaling improved expectations for the stock’s valuation. Susquehanna Lifts PT on Applied Materials (AMAT) – Here’s Why
• Positive Sentiment: Applied Materials unveiled its AI-powered SENZ platform, designed to speed development of smart glasses by integrating optics, light engines, vision correction, and dimming into one system. That supports the company’s AI growth narrative and could open new product opportunities. Applied Materials (AMAT) Unveils AI-Powered SENZ Platform to Accelerate Smart Glasses Development
• Positive Sentiment: Chip stocks are broadly rallying as investors position around strong AI and semiconductor demand, which is helping lift Applied Materials along with the sector. The Second-Biggest Stock Sale in History Hits the Nasdaq Friday, and Chip Stocks Are Ripping
• Neutral Sentiment: Several recent market commentaries and “best stocks to buy” articles have highlighted AMAT’s momentum, but these are more sentiment indicators than direct catalysts for the shares. Is Applied Materials (AMAT) One of the Best Stocks on the Rise to Invest In?
• Neutral Sentiment: Investor interest in AMAT remains elevated, with Zacks noting the stock has been trending among users, but this does not by itself change fundamentals. Is Trending Stock Applied Materials, Inc. (AMAT) a Buy Now?

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.