Applied Materials (NASDAQ:AMAT) Trading 4.1% Higher – Time to Buy?

Shares of Applied Materials, Inc. (NASDAQ:AMAT) were up 4.1% on Thursday . The stock traded as high as $638.90 and last traded at $617.11. Approximately 16,601,756 shares changed hands during trading, an increase of 115% from the average session volume of 7,714,619 shares. The stock had previously closed at $592.92.

Trending Headlines about Applied Materials

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

• Positive Sentiment: Applied Materials’ AGS services business is being highlighted as a long-term growth engine, with AI-enabled services and expanding margins potentially creating more recurring revenue. Can AMAT’s AGS Business Become a Long-Term Growth Driver?
• Positive Sentiment: Shares are benefiting from renewed enthusiasm around AI demand and strong earnings momentum, with articles noting the stock has been hitting new highs after solid results and upbeat guidance. AI Demand, Earnings Send Applied Materials to New Highs
• Positive Sentiment: Applied Materials launched SENZ with Qualcomm and EssilorLuxottica for AI eyewear, reinforcing investor hopes that the company can expand beyond core chipmaking tools into adjacent growth markets. Applied Materials (AMAT) Launches SENZ With Qualcomm And EssilorLuxottica For AI Eyewear
• Positive Sentiment: Analyst sentiment remains constructive, with higher price targets such as Citi’s $710 view helping fuel the rally by suggesting AI demand can justify the premium valuation. Applied Materials (AMAT) Stock Rallies 8.75% on Citi’s Bullish $710 Price Target
• Neutral Sentiment: Several insiders, including CEO Gary Dickerson and SVP Omkaram Nalamasu, sold shares this week; while the sales were small relative to their remaining holdings, they can weigh on sentiment. Why Applied Materials Insiders Sold $65 Million Worth of Stock
• Neutral Sentiment: Some commentary warns the stock looks expensive after a sharp year-to-date surge, with valuation comparisons to the dot-com era potentially prompting caution despite the strong fundamental backdrop. Applied Materials stock valuation and performance

Analyst Upgrades and Downgrades

AMAT has been the subject of a number of recent research reports. Stifel Nicolaus set a $530.00 target price on shares of Applied Materials in a research report on Friday, May 15th. Barclays raised their price target on shares of Applied Materials from $500.00 to $590.00 and gave the stock an “overweight” rating in a research report on Thursday, June 11th. Morgan Stanley reiterated an “equal weight” rating and issued a $502.00 price objective (up from $454.00) on shares of Applied Materials in a research note on Friday, May 15th. TD Cowen boosted their price objective on shares of Applied Materials from $450.00 to $525.00 and gave the company a “buy” rating in a report on Friday, May 15th. Finally, Weiss Ratings restated a “buy (b-)” rating on shares of Applied Materials in a research report on Friday, March 27th. Twenty-seven investment analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $489.16.

Applied Materials Stock Performance

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 company has a market capitalization of $489.96 billion, a price-to-earnings ratio of 57.94, a price-to-earnings-growth ratio of 1.72 and a beta of 1.67. The firm has a fifty day moving average price of $451.05 and a 200-day moving average price of $364.90.

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

Applied Materials Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Thursday, August 20th will be given a $0.53 dividend. The ex-dividend date is Thursday, August 20th. This represents a $2.12 annualized dividend and a dividend yield of 0.3%. Applied Materials’s payout ratio is presently 19.91%.

Insider Buying and Selling

In other news, SVP Omkaram Nalamasu sold 24,263 shares of the company’s stock in a transaction that occurred on Tuesday, June 16th. The shares were sold at an average price of $593.43, for a total transaction of $14,398,392.09. Following the completion of the sale, the senior vice president owned 146,916 shares of the company’s stock, valued at approximately $87,184,361.88. This represents a 14.17% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, Director Thomas J. Iannotti sold 9,250 shares of the stock in a transaction that occurred on Tuesday, June 16th. The stock was sold at an average price of $599.77, for a total transaction of $5,547,872.50. Following the sale, the director owned 40,559 shares in the company, valued at $24,326,071.43. This represents a 18.57% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders sold 189,767 shares of company stock worth $107,769,409. 0.30% of the stock is owned by company insiders.

Hedge Funds Weigh In On Applied Materials

Several hedge funds and other institutional investors have recently modified their holdings of the business. Cornerstone Financial Management LLC acquired a new position in shares of Applied Materials during the 4th quarter worth $25,000. Redmont Wealth Advisors LLC acquired a new stake in Applied Materials in the third quarter valued at about $26,000. Wilkerson Advisory Group LLC bought a new position in Applied Materials in the fourth quarter valued at about $26,000. Financial Freedom LLC bought a new position in Applied Materials in the first quarter valued at about $28,000. Finally, Highline Wealth Partners LLC raised its stake in Applied Materials by 48.7% during the fourth quarter. Highline Wealth Partners LLC now owns 116 shares of the manufacturing equipment provider’s stock worth $30,000 after acquiring an additional 38 shares in the last quarter. Institutional investors own 80.56% of the company’s stock.

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.