Applied Materials (NASDAQ:AMAT) Price Target Cut to $520.00 by Analysts at Bank of America

Applied Materials (NASDAQ:AMAT) had its price target lowered by Bank of America from $650.00 to $520.00 in a research report sent to investors on Friday, MarketBeat.com reports. Bank of America currently has a buy rating on the manufacturing equipment provider’s stock.

A number of other analysts also recently commented on AMAT. Wall Street Zen upgraded Applied Materials from a “hold” rating to a “buy” rating in a research report on Saturday, September 26th. JPMorgan Chase & Co. raised 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, August 14th. William Blair began coverage on Applied Materials in a research report on Tuesday, August 11th. They issued a “market perform” rating for the company. Zacks Research downgraded Applied Materials from a “strong-buy” rating to a “hold” rating in a research note on Thursday, October 15th. Finally, New Street Research decreased their price objective on shares of Applied Materials from $580.00 to $525.00 and set a “neutral” rating on the stock in a research report on Friday, August 14th. Twenty-nine analysts have rated the stock with a Buy rating and ten have given a Hold rating to the company’s stock. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $589.23.

Applied Materials Price Performance

AMAT stock opened at $370.50 on Friday. The firm has a 50 day moving average of $437.91 and a 200-day moving average of $446.02. Applied Materials has a 12-month low of $203.40 and a 12-month high of $739.67. The company has a current ratio of 2.42, a quick ratio of 1.79 and a debt-to-equity ratio of 0.20. The company has a market cap of $294.03 billion, a price-to-earnings ratio of 29.36, a PEG ratio of 0.74 and a beta of 1.67.

Applied Materials (NASDAQ:AMAT) last released its quarterly earnings results on Thursday, November 12th. The manufacturing equipment provider reported $4.16 earnings per share for the quarter, topping analysts’ consensus estimates of $4.06 by $0.10. The business had revenue of $10.41 billion for the quarter, compared to analysts’ expectations of $10.30 billion. Applied Materials had a return on equity of 43.37% and a net margin of 29.29%. During the same quarter in the prior year, the firm posted $2.17 EPS. Applied Materials has set its Q1 2027 guidance at 4.150-4.550 EPS. As a group, equities analysts expect that Applied Materials will post 18.28 EPS for the current fiscal year.

Applied Materials Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, December 10th. Investors of record on Thursday, November 19th will be paid a dividend of $0.53 per share. The ex-dividend date of this dividend is Thursday, November 19th. This represents a $2.12 annualized dividend and a dividend yield of 0.6%. Applied Materials’s dividend payout ratio is presently 18.28%.

Insider Activity at Applied Materials

In related news, CAO Adam Sanders sold 725 shares of the firm’s stock in a transaction that occurred on Friday, October 2nd. The shares were sold at an average price of $544.56, for a total transaction of $394,806.00. Following the sale, the chief accounting officer owned 3,181 shares in the company, valued at approximately $1,732,245.36. This trade represents a 18.56% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, 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 completion of the sale, the director directly owned 25,544 shares of the company’s stock, valued at $11,877,960. The trade was a 3.77% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders have sold 9,225 shares of company stock valued at $4,454,181. Company insiders own 0.30% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the business. Wallace Advisory Group LLC boosted its holdings in shares of Applied Materials by 60.0% during the third quarter. Wallace Advisory Group LLC now owns 608 shares of the manufacturing equipment provider’s stock worth $311,000 after purchasing an additional 228 shares during the last quarter. Empowered Funds LLC grew its position in shares of Applied Materials by 1.6% in the third quarter. Empowered Funds LLC now owns 118,937 shares of the manufacturing equipment provider’s stock valued at $60,822,000 after purchasing an additional 1,828 shares during the period. Roberts Glore & Co. Inc. IL increased its stake in Applied Materials by 1.7% in the third quarter. Roberts Glore & Co. Inc. IL now owns 4,737 shares of the manufacturing equipment provider’s stock valued at $2,422,000 after purchasing an additional 78 shares during the last quarter. Mayport LLC increased its stake in Applied Materials by 8.7% in the third quarter. Mayport LLC now owns 791 shares of the manufacturing equipment provider’s stock valued at $405,000 after purchasing an additional 63 shares during the last quarter. Finally, Advisory Alpha LLC lifted its position in Applied Materials by 21.7% during the third quarter. Advisory Alpha LLC now owns 13,233 shares of the manufacturing equipment provider’s stock worth $6,768,000 after buying an additional 2,364 shares during the period. Hedge funds and other institutional investors own 80.56% of the company’s stock.

Trending Headlines about Applied Materials

Investors following AMAT have been watching these headlines:

• Positive Sentiment: Fiscal Q4 revenue reached a record $10.41 billion, up 53% year over year, while non-GAAP EPS rose 92% to $4.16; both topped analysts’ estimates. The company also reported higher margins and returned $2.42 billion to shareholders through dividends and buybacks. Applied Materials Announces Fourth Quarter and Fiscal Year 2026 Results
• Positive Sentiment: Management’s outlook points to continued momentum: it forecast Q1 revenue of $10.6 billion–$11.6 billion and expects Semiconductor Systems revenue to grow more than 40% in calendar 2026. AI-related chip demand and capacity investment are key drivers of the forecast. Applied Materials sees semiconductor systems growth above 40%
• Neutral Sentiment: Management said demand is running ahead of supply, but component shortages and customers’ limited clean-room capacity may constrain how quickly equipment deliveries can scale. China is expected to account for less than a quarter of business in 2027, reducing reliance on that market even as export restrictions remain a risk. Applied Materials Says Chip Demand Remains Much Higher Than Supply

Applied Materials Company Profile

Applied Materials, Inc. develops and supplies equipment, software and services used to manufacture semiconductors and advanced displays. Its technologies help customers build and process materials at the microscopic scale required for chips and other electronic products. The company’s offerings include systems for depositing, removing and modifying materials, as well as inspection, measurement and process-control tools. It also provides equipment and services for advanced semiconductor packaging and supports customers with maintenance, upgrades and manufacturing software.