Applied Materials (NASDAQ:AMAT) Trading Up 10.8% – Time to Buy?

Applied Materials, Inc. (NASDAQ:AMAT) shares rose 10.8% on Monday . The company traded as high as $708.99 and last traded at $694.64. 13,930,802 shares traded hands during trading, an increase of 72% from the average daily volume of 8,097,463 shares. The stock had previously closed at $626.84.

Key Stories Impacting Applied Materials

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

• Positive Sentiment: KeyBanc issued a bullish note ahead of Applied Materials’ Q3 earnings and raised expectations for the stock, helping fuel a sharp rally. Applied Materials Just Ripped 55% in a Month. Is It Time to Sell?
• Positive Sentiment: Bank of America and Wells Fargo also lifted their price targets recently, reinforcing the view that analysts see more upside in AMAT despite its big run-up. Bank of America Just Gave Applied Materials Stock a New Street-High Price Target
• Positive Sentiment: Applied Materials is being helped by continued optimism around AI infrastructure spending and advanced chip manufacturing, which supports demand for its semiconductor equipment. Applied Materials stock surges 10%: here’s why
• Positive Sentiment: The stock was added to the Russell Top 50 Index, which can increase institutional attention and passive fund ownership. Applied Materials (AMAT) Joins Russell Top 50 After Leaving Value Indexes
• Neutral Sentiment: Some commentary suggests the stock’s strong move may already reflect a lot of good news, so investors are watching earnings closely for any sign of disappointment. Applied Materials: Equipment Market Surge Priced Into Stock Price

Analyst Upgrades and Downgrades

Several brokerages have recently commented on AMAT. Barclays upped their price objective on shares of Applied Materials from $500.00 to $590.00 and gave the stock an “overweight” rating in a report on Thursday, June 11th. The Goldman Sachs Group boosted their target price on Applied Materials from $390.00 to $520.00 and gave the company a “buy” rating in a research report on Friday, May 15th. Wall Street Zen upgraded Applied Materials from a “hold” rating to a “buy” rating in a research note on Saturday, May 23rd. Wells Fargo & Company raised their price target on Applied Materials from $715.00 to $740.00 and gave the stock an “overweight” rating in a research report on Friday. Finally, HSBC started coverage on Applied Materials in a research note on Friday, May 8th. They issued a “buy” rating and a $517.00 price objective for the company. Twenty-seven investment analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the company. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of $541.06.

Applied Materials Stock Performance

The stock has a market capitalization of $551.52 billion, a PE ratio of 65.22, a P/E/G ratio of 1.74 and a beta of 1.67. The company has a debt-to-equity ratio of 0.22, a quick ratio of 1.80 and a current ratio of 2.51. The firm’s 50 day moving average is $473.54 and its two-hundred day moving average is $378.12.

Applied Materials (NASDAQ:AMAT) last issued its quarterly earnings results on Thursday, May 14th. The manufacturing equipment provider reported $2.86 EPS for the quarter, beating the consensus estimate of $2.68 by $0.18. The company had revenue of $7.91 billion during the quarter, compared to analysts’ expectations of $7.68 billion. Applied Materials had a net margin of 29.31% and a return on equity of 36.97%. The firm’s revenue was up 11.4% compared to the same quarter last year. During the same quarter last year, the company posted $2.39 EPS. Applied Materials has set its Q3 2026 guidance at 3.160-3.560 EPS. As a group, research analysts predict that Applied Materials, Inc. will post 12.1 earnings per share for the current year.

Applied Materials Announces Dividend

The business 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. The ex-dividend date is Thursday, August 20th. This represents a $2.12 dividend on an annualized basis and a yield of 0.3%. Applied Materials’s dividend payout ratio (DPR) is 19.91%.

Insider Transactions at Applied Materials

In other Applied Materials news, SVP Timothy M. Deane sold 8,621 shares of the stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $590.76, for a total value of $5,092,941.96. Following the sale, the senior vice president 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 transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Thomas J. Iannotti sold 9,250 shares of Applied Materials stock in a transaction dated Tuesday, June 16th. The shares were sold at an average price of $599.77, for a total value of $5,547,872.50. Following the completion of the transaction, the director owned 40,559 shares of the company’s stock, valued at $24,326,071.43. The trade was a 18.57% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 199,767 shares of company stock valued at $114,104,709 in the last 90 days. Insiders own 0.30% of the company’s stock.

Institutional Trading of Applied Materials

Large investors have recently made changes to their positions in the company. Basecamp Wealth Advisors LLC raised its holdings in Applied Materials by 0.7% in the first quarter. Basecamp Wealth Advisors LLC now owns 3,288 shares of the manufacturing equipment provider’s stock valued at $1,124,000 after acquiring an additional 22 shares in the last quarter. Private Wealth Management Group LLC grew its holdings in Applied Materials by 4.9% during the 1st quarter. Private Wealth Management Group LLC now owns 531 shares of the manufacturing equipment provider’s stock worth $181,000 after acquiring an additional 25 shares in the last quarter. One Day In July LLC increased its position in shares of Applied Materials by 2.4% in the 1st quarter. One Day In July LLC now owns 1,089 shares of the manufacturing equipment provider’s stock valued at $372,000 after purchasing an additional 26 shares during the last quarter. Pinnacle Bancorp Inc. increased its position in shares of Applied Materials by 1.3% in the 1st quarter. Pinnacle Bancorp Inc. now owns 2,082 shares of the manufacturing equipment provider’s stock valued at $712,000 after purchasing an additional 27 shares during the last quarter. Finally, Horst & Graben Wealth Management LLC raised its holdings in shares of Applied Materials by 2.1% in the 1st quarter. Horst & Graben Wealth Management LLC now owns 1,304 shares of the manufacturing equipment provider’s stock valued at $446,000 after purchasing an additional 27 shares in the last quarter. 80.56% of the stock is currently owned by hedge funds and other 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.