Applied Materials (NASDAQ:AMAT) Stock Jumps 5.2% – Still a Buy?

Applied Materials, Inc. (NASDAQ:AMAT)’s stock price shot up 5.2% during trading on Tuesday. The company traded as high as $513.28 and last traded at $512.01. Approximately 7,121,143 shares traded hands during mid-day trading, a decline of 11% from the average session volume of 7,980,771 shares. The stock had previously closed at $486.76.

More Applied Materials News

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

• Positive Sentiment: Investors remain optimistic about the chipmaking-equipment boom, which has accelerated growth at Applied Materials. The company’s positioning and industry prospects could support additional stock-price upside. Better Semiconductor Equipment Stock: Applied Materials vs. Lam Research
• Positive Sentiment: Improving margins and long-term customer commitments are strengthening the growth outlook, supporting the view that Applied Materials can deliver solid future results. Why It’s Time to Load Up on Applied Materials Stock
• Positive Sentiment: Wall Street’s average price target implies meaningful potential upside, while positive earnings-estimate revisions provide an additional near-term catalyst. Wall Street Analysts Believe Applied Materials Could Rally
• Neutral Sentiment: Commentary highlights Applied Materials’ exceptional multiyear shareholder returns but questions whether its current scale and valuation have changed the investment profile, potentially prompting investors to reassess future capital returns and growth. Is Applied Materials Still The Business You Bought?
• Negative Sentiment: Morgan Stanley lowered its price target from $642 to $563 and maintained an “equal weight” rating. Although the revised target still indicates upside, the cut signals more cautious expectations and limits the immediate bullish impact. Morgan Stanley Cuts Applied Materials’ Price Target

Wall Street Analyst Weigh In

Several brokerages recently commented on AMAT. JPMorgan Chase & Co. lifted their price objective on Applied Materials from $515.00 to $660.00 and gave the stock an “overweight” rating in a report on Friday, August 14th. UBS Group boosted their price target on Applied Materials from $675.00 to $695.00 and gave the company a “buy” rating in a research note on Tuesday, September 1st. Berenberg Bank increased their price objective on shares of Applied Materials from $575.00 to $675.00 and gave the stock a “buy” rating in a research note on Monday, August 17th. HC Wainwright set a $850.00 target price on shares of Applied Materials in a research report on Monday, June 29th. Finally, Deutsche Bank Aktiengesellschaft reiterated a “buy” rating and issued a $605.00 price target (down from $680.00) on shares of Applied Materials in a research report on Friday, August 14th. One equities research analyst has rated the stock with a Strong Buy rating, thirty have given a Buy rating and eight have given a Hold rating to the company. According to MarketBeat.com, Applied Materials has a consensus rating of “Moderate Buy” and a consensus target price of $629.38.

Applied Materials Price Performance

The firm has a market cap of $406.33 billion, a PE ratio of 44.14, a P/E/G ratio of 1.35 and a beta of 1.60. The firm’s fifty day simple moving average is $487.97 and its two-hundred day simple moving average is $471.76. The company has a quick ratio of 1.79, a current ratio of 2.42 and a debt-to-equity ratio of 0.20.

Applied Materials (NASDAQ:AMAT) last announced its quarterly earnings data on Thursday, August 13th. The manufacturing equipment provider reported $3.50 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates 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 30.05% and a return on equity of 38.02%. The company’s revenue for the quarter was up 24.8% compared to the same quarter last year. During the same period in the prior year, the company posted $2.48 earnings per share. Applied Materials has set its Q4 2026 guidance at 3.820-4.220 EPS. As a group, research analysts expect that Applied Materials, Inc. will post 12.79 EPS for the current year.

Applied Materials Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, December 10th. Shareholders of record on Thursday, November 19th will be issued a dividend of $0.53 per share. The ex-dividend date of this dividend is Thursday, November 19th. This represents a $2.12 dividend on an annualized basis and a yield of 0.4%. Applied Materials’s dividend payout ratio (DPR) is currently 18.28%.

Insider Activity

In related news, Director Judy Bruner sold 1,000 shares of Applied Materials stock in a transaction that occurred on Tuesday, September 8th. The stock was sold at an average price of $465.00, for a total transaction of $465,000.00. Following the sale, the director owned 25,544 shares of the company’s stock, valued at approximately $11,877,960. This trade represents a 3.77% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Brice Hill sold 7,500 shares of the business’s stock in a transaction that occurred on Tuesday, August 25th. The stock was sold at an average price of $479.25, for a total value of $3,594,375.00. Following the completion of the transaction, the chief financial officer directly owned 128,613 shares in the company, valued at approximately $61,637,780.25. This represents a 5.51% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 0.30% of the stock is owned by insiders.

Hedge Funds Weigh In On Applied Materials

Hedge funds have recently modified their holdings of the stock. Ausdal Financial Partners Inc. purchased a new stake in Applied Materials in the second quarter valued at $4,005,000. Caldwell Investment Management Ltd. purchased a new stake in shares of Applied Materials in the second quarter worth about $1,589,000. Evolve Private Wealth LLC grew its holdings in Applied Materials by 59.0% during the first quarter. Evolve Private Wealth LLC now owns 2,875 shares of the manufacturing equipment provider’s stock worth $983,000 after acquiring an additional 1,067 shares during the period. Principal Financial Group Inc. raised its position in Applied Materials by 3.0% during the second quarter. Principal Financial Group Inc. now owns 1,008,591 shares of the manufacturing equipment provider’s stock valued at $729,211,000 after acquiring an additional 28,982 shares in the last quarter. Finally, Handelsbanken Fonder AB raised its position in Applied Materials by 29.6% during the second quarter. Handelsbanken Fonder AB now owns 462,685 shares of the manufacturing equipment provider’s stock valued at $334,521,000 after acquiring an additional 105,776 shares in the last quarter. Hedge funds and other institutional investors own 80.56% of the company’s stock.

Applied Materials Company Profile

Applied Materials, Inc is a global supplier of equipment, services and software used to manufacture semiconductor chips, flat-panel displays and other advanced electronic products. Its technologies help customers build and enhance materials at the nanoscale, supporting processes such as deposition, etching, inspection, metrology and packaging.

The company’s offerings include semiconductor manufacturing systems, process-control and inspection equipment, and services designed to improve the performance, productivity and longevity of production equipment.