Applied Materials (NASDAQ:AMAT) Cut to “Hold” at Wall Street Zen

Wall Street Zen cut shares of Applied Materials (NASDAQ:AMAT) from a buy rating to a hold rating in a research report sent to investors on Saturday morning.

AMAT has been the topic of a number of other reports. Sanford C. Bernstein restated an “outperform” rating and issued a $525.00 price target on shares of Applied Materials in a research note on Friday, May 15th. Seaport Research Partners started coverage on shares of Applied Materials in a research note on Monday, May 4th. They issued a “buy” rating and a $500.00 price objective for the company. UBS Group raised their target price on shares of Applied Materials from $570.00 to $705.00 and gave the company a “buy” rating in a research report on Wednesday, July 15th. HSBC reaffirmed a “buy” rating and set a $683.00 target price on shares of Applied Materials in a research note on Monday, July 27th. Finally, Weiss Ratings reiterated a “buy (b-)” rating on shares of Applied Materials in a report on Wednesday, June 24th. One analyst has rated the stock with a Strong Buy rating, twenty-seven have given a Buy rating and six have assigned a Hold rating to the company. According to data from MarketBeat.com, Applied Materials presently has a consensus rating of “Moderate Buy” and an average price target of $603.23.

Applied Materials Price Performance

Applied Materials stock opened at $518.21 on Friday. The company has a debt-to-equity ratio of 0.22, a quick ratio of 1.80 and a current ratio of 2.51. Applied Materials has a 52 week low of $154.46 and a 52 week high of $739.67. The stock has a market capitalization of $411.44 billion, a P/E ratio of 48.66, a price-to-earnings-growth ratio of 1.29 and a beta of 1.61. The stock has a fifty day moving average of $552.58 and a 200-day moving average of $432.35.

Applied Materials (NASDAQ:AMAT) last released its quarterly earnings data on Thursday, May 14th. The manufacturing equipment provider reported $2.86 earnings per share for the quarter, beating the consensus estimate of $2.68 by $0.18. The business had revenue of $7.91 billion for the quarter, compared to analyst estimates of $7.68 billion. Applied Materials had a return on equity of 36.97% and a net margin of 29.31%.Applied Materials’s revenue was up 11.4% compared to the same quarter last year. During the same period last year, the firm posted $2.39 earnings per share. Applied Materials has set its Q3 2026 guidance at 3.160-3.560 EPS. On average, sell-side analysts expect that Applied Materials will post 12.14 earnings per share for the current fiscal year.

Applied Materials Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Thursday, August 20th will be given a dividend of $0.53 per share. The ex-dividend date is Thursday, August 20th. This represents a $2.12 annualized dividend and a yield of 0.4%. Applied Materials’s dividend payout ratio (DPR) is currently 19.91%.

Insider Activity

In related news, SVP Omkaram Nalamasu sold 24,263 shares of the firm’s stock in a transaction on Tuesday, June 16th. The stock was sold at an average price of $593.43, for a total transaction of $14,398,392.09. Following the completion of the transaction, the senior vice president directly owned 146,916 shares of the company’s stock, valued at $87,184,361.88. This trade represents a 14.17% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Gary E. Dickerson sold 20,000 shares of the company’s stock in a transaction dated Tuesday, June 30th. The shares were sold at an average price of $735.22, for a total value of $14,704,400.00. Following the completion of the sale, the chief executive officer owned 1,599,843 shares in the company, valued at $1,176,236,570.46. This trade represents a 1.23% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 278,088 shares of company stock worth $169,654,805. Company insiders own 0.30% of the company’s stock.

Institutional Trading of Applied Materials

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Brighton Jones LLC raised its position 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 acquiring an additional 2,771 shares in the last quarter. Sivia Capital Partners LLC grew its stake in 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 worth $590,000 after purchasing an additional 679 shares during the period. Forefront Wealth Partners LLC bought a new stake in Applied Materials in the second quarter worth approximately $410,000. Schnieders Capital Management LLC. increased its holdings in Applied Materials by 30.1% in the second quarter. Schnieders Capital Management LLC. now owns 15,003 shares of the manufacturing equipment provider’s stock worth $2,747,000 after purchasing an additional 3,469 shares in the last quarter. Finally, Sei Investments Co. lifted its stake in Applied Materials by 59.3% in the second quarter. Sei Investments Co. now owns 422,694 shares of the manufacturing equipment provider’s stock valued at $77,383,000 after buying an additional 157,426 shares during the period. Institutional investors and hedge funds own 80.56% of the company’s stock.

Key Stories Impacting Applied Materials

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

• Positive Sentiment: Applied Materials has a strong history of exceeding earnings expectations, and analysts say current earnings-estimate trends and other indicators point to a potential beat in its upcoming quarterly report. This raises expectations for continued revenue and earnings momentum. Will Applied Materials Beat Estimates Again in Its Next Earnings Report?
• Positive Sentiment: The stock outperformed the broader market in the latest trading session, suggesting investors continue to favor Applied Materials despite volatility across semiconductor stocks. Applied Materials Outperforms Broader Market
• Neutral Sentiment: Applied Materials was described as having strong fundamentals, but one analyst downgraded the shares ahead of earnings. The report signals that expectations may already be elevated and that the company will need to deliver strong results or guidance to support further gains. Applied Materials Strong Fundamentals, But I’m Downgrading Ahead of Earnings
• Negative Sentiment: Semiconductor stocks faced pressure from fears that increased competition from China could challenge U.S. chip-equipment companies. The concern could weigh on Applied Materials through pricing pressure, market-share risks or restrictions affecting China-related demand. Semiconductor Stocks Sink Over Fears of Increased Competition From China

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.