TD Cowen Reiterates “Buy” Rating for Applied Materials (NASDAQ:AMAT)

Applied Materials (NASDAQ:AMAT)‘s stock had its “buy” rating reissued by investment analysts at TD Cowen in a research report issued on Friday,Benzinga reports. They presently have a $700.00 price target on the manufacturing equipment provider’s stock. TD Cowen’s price target points to a potential upside of 37.98% from the company’s previous close.

AMAT has been the subject of several other reports. Truist Financial set a $575.00 price objective on shares of Applied Materials in a report on Thursday, May 28th. Raymond James Financial set a $650.00 target price on Applied Materials in a research report on Wednesday, June 10th. JPMorgan Chase & Co. lifted their price target on Applied Materials from $515.00 to $660.00 and gave the company an “overweight” rating in a research report on Friday. Erste Group Bank lowered Applied Materials from a “buy” rating to a “hold” rating in a research report on Wednesday, August 5th. Finally, Mizuho upped their target price on shares of Applied Materials from $540.00 to $650.00 and gave the stock an “outperform” rating in a research report on Wednesday, July 8th. One research analyst has rated the stock with a Strong Buy rating, twenty-seven have assigned a Buy rating and seven have issued a Hold rating to the stock. According to MarketBeat.com, Applied Materials currently has a consensus rating of “Moderate Buy” and an average price target of $624.35.

Applied Materials Trading Down 5.1%

NASDAQ:AMAT traded down $27.22 during trading hours on Friday, hitting $507.32. The company had a trading volume of 7,343,546 shares, compared to its average volume of 8,223,466. The company has a debt-to-equity ratio of 0.22, a current ratio of 2.51 and a quick ratio of 1.80. The stock has a 50-day moving average price of $563.06 and a 200 day moving average price of $444.45. The company has a market capitalization of $402.79 billion, a PE ratio of 47.62, a price-to-earnings-growth ratio of 1.38 and a beta of 1.61. Applied Materials has a 52 week low of $154.46 and a 52 week high of $739.67.

Applied Materials (NASDAQ:AMAT) last posted its earnings results on Thursday, August 13th. The manufacturing equipment provider reported $3.50 EPS for the quarter, topping the consensus estimate of $3.40 by $0.10. The firm had revenue of $9.12 billion during the quarter, compared to analysts’ expectations of $8.99 billion. Applied Materials had a net margin of 29.31% and a return on equity of 36.97%. The company’s quarterly revenue was up 24.8% compared to the same quarter last year. During the same period last year, the company posted $2.48 EPS. Applied Materials has set its Q4 2026 guidance at 3.820-4.220 EPS. On average, equities research analysts predict that Applied Materials will post 12.22 EPS for the current fiscal year.

Insider Activity

In other news, SVP Timothy M. Deane sold 8,621 shares of Applied Materials 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 completion of the transaction, the senior vice president owned 134,631 shares of the company’s stock, valued at $79,534,609.56. The trade was a 6.02% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Gary E. Dickerson sold 71,727 shares of the company’s stock in a transaction dated 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 completion of the transaction, the chief executive officer owned 1,695,164 shares in the company, valued at approximately $1,006,503,625. The trade was a 4.06% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 278,088 shares of company stock valued at $169,654,805. 0.30% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Applied Materials

Hedge funds have recently added to or reduced their stakes in the company. Brighton Jones LLC increased its holdings in shares of Applied Materials by 28.0% in the 4th quarter. Brighton Jones LLC now owns 12,674 shares of the manufacturing equipment provider’s stock worth $2,061,000 after purchasing an additional 2,771 shares in the last quarter. Sivia Capital Partners LLC boosted its position in shares of Applied Materials by 26.7% during the second quarter. Sivia Capital Partners LLC now owns 3,225 shares of the manufacturing equipment provider’s stock valued at $590,000 after buying an additional 679 shares during the last quarter. Forefront Wealth Partners LLC bought a new stake in Applied Materials in the 2nd quarter worth about $410,000. Schnieders Capital Management LLC. increased its holdings in Applied Materials by 30.1% in the 2nd quarter. Schnieders Capital Management LLC. now owns 15,003 shares of the manufacturing equipment provider’s stock worth $2,747,000 after buying an additional 3,469 shares in the last quarter. Finally, Sei Investments Co. raised its position in Applied Materials by 59.3% in the 2nd quarter. Sei Investments Co. now owns 422,694 shares of the manufacturing equipment provider’s stock worth $77,383,000 after buying an additional 157,426 shares during the last quarter. 80.56% of the stock is currently owned by hedge funds and other institutional investors.

Trending Headlines about Applied Materials

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

• Positive Sentiment: AI demand is driving strong fundamentals. Fiscal Q3 revenue rose 24.8% year over year to $9.12 billion, exceeding the $8.99 billion consensus estimate, while adjusted EPS of $3.50 topped expectations near $3.40. Advanced packaging, memory and AI infrastructure were key growth drivers. Applied Materials Q3 Earnings Beat Estimates, Revenues Rise Y/Y
• Positive Sentiment: Management raised near-term expectations and sees extended visibility. Q4 revenue guidance of $9.8 billion-$10.8 billion and EPS guidance of $3.82-$4.22 are above consensus estimates of approximately $9.5 billion and $3.65, respectively. Management also cited stronger systems growth and customer demand extending into fiscal 2027 and beyond. Applied Materials Forecasts Quarterly Revenue Above Estimates
• Positive Sentiment: Analyst sentiment remains supportive. JPMorgan raised its price target to $660 with an overweight rating, while RBC increased its target to $600 and assigned an outperform rating. Needham maintained a buy rating with a $740 target. Stock Market Today
• Neutral Sentiment: Investor focus is shifting to execution. Future results will be judged on systems growth, gross margins and evidence that AI-related capital spending is translating into sustained orders. Applied Materials reported a 50.4% non-GAAP Q3 gross margin, and management will participate in upcoming investor conferences. Applied Materials to Participate in Upcoming Investor Conferences
• Negative Sentiment: The earnings beat was not large enough for the market. After AMAT’s substantial year-to-date advance, investors were looking for an even faster growth trajectory. Reports also cited competitive pressure and concerns that guidance, while above estimates, did not clear the elevated “perfect execution” bar. Applied Materials Slips as Investors Seek Faster Growth After Stellar Run

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.