Royal Bank Of Canada Issues Positive Forecast for Applied Materials (NASDAQ:AMAT) Stock Price

Applied Materials (NASDAQ:AMAT) had its price objective increased by Royal Bank Of Canada from $520.00 to $600.00 in a report published on Friday, MarketBeat Ratings reports. The firm currently has an outperform rating on the manufacturing equipment provider’s stock.

AMAT has been the subject of a number of other research reports. Truist Financial set a $575.00 price objective on shares of Applied Materials in a research note on Thursday, May 28th. HC Wainwright set a $850.00 price objective on shares of Applied Materials in a report on Monday, June 29th. TD Cowen upped their target price on Applied Materials from $525.00 to $700.00 and gave the company a “buy” rating in a research report on Thursday, July 9th. Wall Street Zen downgraded shares of Applied Materials from a “buy” rating to a “hold” rating in a research report on Saturday, August 1st. Finally, KeyCorp lifted their price objective on shares of Applied Materials from $550.00 to $750.00 and gave the company an “overweight” rating in a report on Monday, June 29th. One investment analyst has rated the stock with a Strong Buy rating, twenty-seven have issued a Buy rating and six have given a Hold rating to the company’s stock. According to data from MarketBeat, Applied Materials presently has a consensus rating of “Moderate Buy” and a consensus target price of $640.17.

Applied Materials Price Performance

AMAT stock opened at $507.18 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. The company has a market capitalization of $402.68 billion, a PE ratio of 43.72, a price-to-earnings-growth ratio of 1.35 and a beta of 1.61. Applied Materials has a one year low of $154.46 and a one year high of $739.67. The company’s fifty day moving average price is $564.15 and its 200-day moving average price is $444.89.

Applied Materials (NASDAQ:AMAT) last released its quarterly earnings results on Thursday, August 13th. The manufacturing equipment provider reported $3.50 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $3.40 by $0.10. Applied Materials had a net margin of 30.05% and a return on equity of 39.58%. The company had revenue of $9.12 billion for the quarter, compared to the consensus estimate of $8.99 billion. During the same quarter in the prior year, the firm earned $2.48 earnings per share. Applied Materials’s revenue was up 24.8% on a year-over-year basis. Applied Materials has set its Q4 2026 guidance at 3.820-4.220 EPS. On average, equities analysts anticipate that Applied Materials will post 12.22 EPS for the current fiscal year.

Applied Materials Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Thursday, August 20th will be paid a $0.53 dividend. The ex-dividend date is Thursday, August 20th. 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 19.91%.

Insider Buying and Selling at Applied Materials

In related news, SVP Omkaram Nalamasu sold 24,263 shares of the company’s stock in a transaction on Tuesday, June 16th. The shares were sold at an average price of $593.43, for a total value of $14,398,392.09. Following the completion of the sale, the senior vice president owned 146,916 shares in the company, valued at $87,184,361.88. This represents a 14.17% 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, 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 value of $5,547,872.50. Following the sale, the director directly owned 40,559 shares of the company’s stock, valued at $24,326,071.43. The trade was a 18.57% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 278,088 shares of company stock worth $169,654,805. Corporate insiders own 0.30% of the company’s stock.

Institutional Investors Weigh In On Applied Materials

Several institutional investors have recently modified their holdings of the company. JFS Wealth Advisors LLC boosted its stake in Applied Materials by 4.3% during the 2nd quarter. JFS Wealth Advisors LLC now owns 409 shares of the manufacturing equipment provider’s stock valued at $296,000 after purchasing an additional 17 shares during the last quarter. Innovative Asset Advisors Group LLC raised its position in Applied Materials by 2.1% in the second quarter. Innovative Asset Advisors Group LLC now owns 961 shares of the manufacturing equipment provider’s stock worth $695,000 after acquiring an additional 20 shares during the period. Stonebridge Financial Group LLC raised its position in Applied Materials by 2.1% in the second quarter. Stonebridge Financial Group LLC now owns 1,003 shares of the manufacturing equipment provider’s stock worth $725,000 after acquiring an additional 21 shares during the period. N.E.W. Advisory Services LLC boosted its stake in shares of Applied Materials by 5.9% during the 2nd quarter. N.E.W. Advisory Services LLC now owns 377 shares of the manufacturing equipment provider’s stock worth $273,000 after acquiring an additional 21 shares during the last quarter. Finally, IMG Wealth Management Inc. grew its position in shares of Applied Materials by 13.0% during the 2nd quarter. IMG Wealth Management Inc. now owns 183 shares of the manufacturing equipment provider’s stock valued at $132,000 after acquiring an additional 21 shares during the period. Hedge funds and other institutional investors own 80.56% of the company’s stock.

Trending Headlines about Applied Materials

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

• Positive Sentiment: Record quarterly performance: Fiscal Q3 revenue rose 24.8% year over year to $9.12 billion, ahead of the $8.99 billion consensus estimate, while adjusted EPS of $3.50 exceeded expectations. AI infrastructure demand, advanced packaging and memory spending supported growth. Applied Materials Q3 Earnings Beat Estimates, Revenues Rise Y/Y
• Positive Sentiment: Above-consensus outlook: Management projected fiscal Q4 revenue of approximately $9.8 billion to $10.8 billion and EPS of $3.82 to $4.22, both above analyst expectations. The company also pointed to stronger systems growth and unusually long customer visibility into fiscal 2027 and beyond. Applied Materials Forecasts Quarterly Revenue Above Estimates
• Positive Sentiment: Analyst and institutional support: JPMorgan, RBC, TD Cowen, B. Riley, Needham and other firms maintained positive ratings or raised price targets. Soros Capital also reportedly added AMAT among several semiconductor positions, reinforcing the longer-term AI and chip-cycle investment case. Soros Capital Loads Up on Semiconductor Stocks
• Neutral Sentiment: Options imply a possible rebound: Derivatives-market data indicates traders expect the pullback could be temporary, although elevated volatility reflects uncertainty over the stock’s near-term direction. Applied Materials Options Data
• Negative Sentiment: Expectations were exceptionally high: Despite the earnings beat and upbeat guidance, investors wanted faster growth and clearer evidence that AMAT is outpacing rivals in semiconductor manufacturing equipment. Concerns about competition, margins and the pace of systems growth overshadowed the headline results. Applied Materials Slips as Investors Seek Faster Growth
• Negative Sentiment: Broader market pressure added to selling: Weaker July retail-sales data, profit-taking after record highs and a semiconductor-sector selloff weighed on AMAT and other AI-related stocks.

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.