Applied Materials (NASDAQ:AMAT) Stock Dropped to “Hold” by Summit Insights

Applied Materials (NASDAQ:AMAT) was downgraded by equities researchers at Summit Insights from a “buy” rating to a “hold” rating in a research note issued on Friday, Briefing.com reports.

A number of other research analysts have also weighed in on AMAT. Deutsche Bank reaffirmed a “buy” rating and issued a $605.00 price objective (down from $680.00) on shares of Applied Materials in a research note on Friday, August 14th. Royal Bank Of Canada reiterated an “outperform” rating and set a $600.00 price objective on shares of Applied Materials in a report on Wednesday, October 14th. Cantor Fitzgerald reissued an “overweight” rating on shares of Applied Materials in a research report on Tuesday, October 20th. Sanford C. Bernstein decreased their target price on shares of Applied Materials from $700.00 to $600.00 and set an “outperform” rating for the company in a research report on Friday. Finally, HSBC lowered their target price on shares of Applied Materials from $683.00 to $641.00 and set a “buy” rating on the stock in a report on Friday, August 14th. Twenty-nine analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the stock. According to data from MarketBeat.com, Applied Materials has an average rating of “Moderate Buy” and an average target price of $618.53.

Applied Materials Price Performance

Shares of NASDAQ:AMAT opened at $380.95 on Friday. 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 has a twelve month low of $203.40 and a twelve month high of $739.67. The stock’s 50 day moving average is $439.22 and its 200-day moving average is $445.83. The firm has a market capitalization of $302.32 billion, a price-to-earnings ratio of 32.84, a PEG ratio of 0.77 and a beta of 1.67.

Applied Materials (NASDAQ:AMAT) last posted its quarterly earnings results on Thursday, November 12th. The manufacturing equipment provider reported $4.16 earnings per share (EPS) for the quarter, beating the consensus estimate of $4.06 by $0.10. Applied Materials had a net margin of 30.05% and a return on equity of 38.02%. The business had revenue of $10.41 billion during the quarter, compared to the consensus estimate of $10.30 billion. During the same quarter last year, the firm posted $2.17 EPS. Applied Materials has set its Q1 2027 guidance at 4.150-4.550 EPS. Sell-side analysts forecast that Applied Materials will post 12.79 EPS for the current fiscal year.

Insider Activity at Applied Materials

In other Applied Materials news, CAO Adam Sanders sold 725 shares of Applied Materials stock in a transaction 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 transaction, the chief accounting officer directly owned 3,181 shares of the company’s stock, valued at $1,732,245.36. The trade was a 18.56% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Brice Hill sold 7,500 shares of Applied Materials stock in a transaction on Tuesday, August 25th. The stock was sold at an average price of $479.25, for a total transaction of $3,594,375.00. Following the transaction, the chief financial officer directly owned 128,613 shares in the company, valued at $61,637,780.25. This represents a 5.51% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last three months, insiders sold 9,225 shares of company stock valued at $4,454,181. 0.30% of the stock is owned by insiders.

Institutional Trading of Applied Materials

Several institutional investors and hedge funds have recently made changes to their positions in the company. Conscious Wealth Investments LLC boosted its stake in shares of Applied Materials by 1.5% in the 3rd quarter. Conscious Wealth Investments LLC now owns 14,141 shares of the manufacturing equipment provider’s stock worth $7,207,000 after buying an additional 212 shares during the last quarter. Xcelsior Advisor Partners LLC grew its holdings in shares of Applied Materials by 398.2% in the third quarter. Xcelsior Advisor Partners LLC now owns 3,637 shares of the manufacturing equipment provider’s stock valued at $1,860,000 after acquiring an additional 2,907 shares in the last quarter. Elgethun Capital Management grew its holdings in shares of Applied Materials by 8.2% in the third quarter. Elgethun Capital Management now owns 1,060 shares of the manufacturing equipment provider’s stock valued at $542,000 after acquiring an additional 80 shares in the last quarter. Novare Capital Management LLC grew its holdings in shares of Applied Materials by 824.7% in the third quarter. Novare Capital Management LLC now owns 3,588 shares of the manufacturing equipment provider’s stock valued at $1,835,000 after acquiring an additional 3,200 shares in the last quarter. Finally, Lifeworks Advisors LLC increased its position in shares of Applied Materials by 3.5% during the third quarter. Lifeworks Advisors LLC now owns 4,582 shares of the manufacturing equipment provider’s stock valued at $2,343,000 after acquiring an additional 156 shares during the last quarter. Hedge funds and other institutional investors own 80.56% of the company’s stock.

Trending Headlines about Applied Materials

These are some of the AMAT headlines that stood out recently:

• Positive Sentiment: Fiscal Q4 revenue reached a record $10.41 billion, up 53% year over year, while adjusted EPS of $4.16 topped the $4.06 consensus. The company also reported record annual revenue and higher margins. Applied Materials Announces Fourth Quarter and Fiscal Year 2026 Results
• Positive Sentiment: Q1 fiscal 2027 guidance was strong: revenue of $10.6 billion–$11.6 billion and EPS of $4.15–$4.55, with the revenue range above analysts’ expectations. Management expects AI-chip demand to support further growth and says Applied Materials could outgrow the wafer-fab equipment market again in 2027. Applied Materials forecasts quarterly revenue above estimates
• Negative Sentiment: Despite the results, the market’s response has been muted. Broader technology weakness and lingering Nvidia-related concerns may be tempering investor enthusiasm, while recent steep declines in chip-equipment shares have left investors looking for stronger confirmation that the recovery will continue. Applied Materials’ Beat Gets a Lukewarm Reception

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.