Applied Materials (NASDAQ:AMAT) Stock Price Up 6% – Still a Buy?

Shares of Applied Materials, Inc. (NASDAQ:AMAT) shot up 6% during mid-day trading on Friday . The company traded as high as $438.04 and last traded at $435.1810. 7,439,718 shares were traded during trading, an increase of 4% from the average session volume of 7,184,898 shares. The stock had previously closed at $410.64.

Key Headlines Impacting Applied Materials

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

• Positive Sentiment: Seaport Research initiated coverage with a Buy rating and a $500 price target, calling Applied Materials a key beneficiary of AI semiconductor spending. Seaport Research Initiates Coverage of Applied Materials (AMAT) with Buy
• Positive Sentiment: Analysts at Erste Group raised FY2027 earnings estimates, reinforcing expectations for long-term earnings growth. BofA Remains Bullish on Applied Materials (AMAT)
• Positive Sentiment: Wall Street commentary suggests Applied Materials could post an earnings beat in its upcoming report, which is keeping sentiment constructive. Applied Materials (AMAT) Reports Next Week: Wall Street Expects Earnings Growth
• Neutral Sentiment: Recent articles note the stock had fallen more than the broader market in the prior session, but those moves appear secondary to the stronger analyst-driven optimism. Here’s Why Applied Materials (AMAT) Fell More Than Broader Market

Wall Street Analyst Weigh In

A number of equities research analysts recently weighed in on the stock. Seaport Research Partners assumed coverage on shares of Applied Materials in a report on Monday. They set a “buy” rating and a $500.00 price objective for the company. Stifel Nicolaus upped their price target on Applied Materials from $340.00 to $450.00 and gave the stock a “buy” rating in a research report on Friday, February 13th. Morgan Stanley upped their price target on shares of Applied Materials from $432.00 to $454.00 and gave the company an “overweight” rating in a research note on Tuesday. TD Cowen increased their price objective on shares of Applied Materials from $315.00 to $450.00 and gave the stock a “buy” rating in a research note on Friday, February 13th. Finally, Zacks Research lowered Applied Materials from a “strong-buy” rating to a “hold” rating in a research report on Monday, April 27th. Twenty-eight equities research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus target price of $375.90.

Applied Materials Stock Up 6.0%

The company has a quick ratio of 1.94, a current ratio of 2.71 and a debt-to-equity ratio of 0.30. The stock has a market cap of $345.36 billion, a PE ratio of 44.54, a price-to-earnings-growth ratio of 1.90 and a beta of 1.66. The firm has a fifty day moving average of $371.10 and a 200 day moving average of $311.19.

Applied Materials (NASDAQ:AMAT) last issued its quarterly earnings results on Thursday, February 12th. The manufacturing equipment provider reported $2.38 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.21 by $0.17. Applied Materials had a return on equity of 37.52% and a net margin of 27.78%.The firm had revenue of $7.01 billion for the quarter, compared to analysts’ expectations of $6.88 billion. During the same quarter in the previous year, the firm posted $2.38 EPS. The firm’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. On average, equities research analysts anticipate that Applied Materials, Inc. will post 11.14 EPS for the current fiscal year.

Applied Materials Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, June 11th. Shareholders of record on Thursday, May 21st will be issued a $0.53 dividend. This is a boost from Applied Materials’s previous quarterly dividend of $0.46. The ex-dividend date is Thursday, May 21st. This represents a $2.12 dividend on an annualized basis and a dividend yield of 0.5%. Applied Materials’s dividend payout ratio (DPR) is 21.70%.

Insider Buying and Selling

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

Institutional Trading of Applied Materials

Several institutional investors have recently made changes to their positions in AMAT. Grandfield & Dodd LLC raised its position in shares of Applied Materials by 6.9% during the third quarter. Grandfield & Dodd LLC now owns 269,511 shares of the manufacturing equipment provider’s stock worth $55,180,000 after purchasing an additional 17,397 shares during the period. First Trust Advisors LP boosted its stake in Applied Materials by 4.9% in the 3rd quarter. First Trust Advisors LP now owns 3,101,772 shares of the manufacturing equipment provider’s stock valued at $635,057,000 after purchasing an additional 145,050 shares during the period. Canada Post Corp Registered Pension Plan boosted its stake in shares of Applied Materials by 82.2% in the third quarter. Canada Post Corp Registered Pension Plan now owns 26,893 shares of the manufacturing equipment provider’s stock valued at $5,512,000 after buying an additional 12,132 shares during the period. Elo Mutual Pension Insurance Co boosted its position in shares of Applied Materials by 21.8% during the 3rd quarter. Elo Mutual Pension Insurance Co now owns 96,712 shares of the manufacturing equipment provider’s stock worth $19,801,000 after acquiring an additional 17,288 shares in the last quarter. Finally, Worth Asset Management LLC acquired a new stake in shares of Applied Materials in the 4th quarter valued at approximately $1,531,000. 80.56% of the stock is currently owned by institutional investors and hedge funds.

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.