Traders Purchase Large Volume of Applied Materials Call Options (NASDAQ:AMAT)

Applied Materials, Inc. (NASDAQ:AMAT) was the recipient of unusually large options trading on Wednesday. Stock investors bought 97,138 call options on the stock. This is an increase of approximately 231% compared to the typical volume of 29,376 call options.

Applied Materials Stock Performance

Shares of Applied Materials stock traded up $10.17 on Wednesday, reaching $369.30. 8,589,899 shares of the company traded hands, compared to its average volume of 8,473,617. The company has a 50 day moving average of $298.78 and a 200 day moving average of $239.54. The company has a debt-to-equity ratio of 0.30, a current ratio of 2.71 and a quick ratio of 1.94. Applied Materials has a 52 week low of $123.74 and a 52 week high of $376.32. The firm has a market capitalization of $293.12 billion, a PE ratio of 37.80, a PEG ratio of 3.13 and a beta of 1.70.

Applied Materials (NASDAQ:AMAT) last issued its quarterly earnings results on Thursday, February 12th. The manufacturing equipment provider reported $2.38 EPS for the quarter, beating analysts’ consensus estimates of $2.21 by $0.17. The firm had revenue of $7.01 billion for the quarter, compared to analysts’ expectations of $6.88 billion. Applied Materials had a return on equity of 37.52% and a net margin of 27.78%.The business’s revenue for the quarter was down 2.1% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $2.38 EPS. Applied Materials has set its Q2 2026 guidance at 2.440-2.840 EPS. Equities analysts forecast that Applied Materials will post 9.38 earnings per share for the current year.

Applied Materials Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, March 12th. Investors of record on Thursday, February 19th will be paid a dividend of $0.46 per share. The ex-dividend date of this dividend is Thursday, February 19th. This represents a $1.84 annualized dividend and a yield of 0.5%. Applied Materials’s payout ratio is currently 18.83%.

Wall Street Analysts Forecast Growth

A number of equities research analysts have commented on the stock. DZ Bank upgraded Applied Materials to a “hold” rating in a report on Monday. Bank of America increased their target price on Applied Materials from $300.00 to $350.00 and gave the stock a “buy” rating in a report on Tuesday, January 13th. Craig Hallum reissued a “hold” rating and issued a $190.00 price target on shares of Applied Materials in a research report on Friday, November 14th. Stifel Nicolaus raised their price objective on shares of Applied Materials from $340.00 to $450.00 and gave the company a “buy” rating in a research note on Friday, February 13th. Finally, Sanford C. Bernstein restated an “outperform” rating and issued a $425.00 target price on shares of Applied Materials in a report on Friday, February 13th. Twenty-seven investment analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company’s stock. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $363.04.

More Applied Materials News

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

• Positive Sentiment: Q4 / fiscal Q1 results beat and management gave strong forward guidance (management projected robust revenue growth into 2026), which triggered analyst target‑price increases and upward revisions to earnings estimates. 3 Under-the-Radar Earnings Surprises Could Signal a New Trend
• Positive Sentiment: Zacks notes that earnings estimates for AMAT are being revised higher and frames the name as a buy on that strength. Upward estimate momentum tends to support share-price gains. Earnings Estimates Moving Higher for Applied Materials (AMAT): Time to Buy?
• Positive Sentiment: Zacks upgraded AMAT to a Zacks Rank #1 (Strong Buy), reflecting growing optimism on near‑term earnings prospects and likely supporting buying interest. Applied Materials (AMAT) Upgraded to Strong Buy: Here’s Why
• Positive Sentiment: Analyst commentary (Barchart and others) highlights that AMAT “crushed” expectations and issued upbeat guidance, feeding a narrative of a multi‑year growth cycle for semiconductor equipment — a thematic tailwind for the stock. It’s ‘Time to Shine’ for Applied Materials Stock, According to Analysts. Should You Buy AMAT Here?
• Positive Sentiment: Unusually large options activity: about 97,138 call contracts were traded today (≈231% above average call volume), signaling aggressive bullish bets from options traders that can amplify near‑term upside. (internal options flow report)
• Neutral Sentiment: Deep‑dive pieces examine AMAT’s international revenue mix and the company’s positioning across regions; useful for medium‑term fundamental context but not an immediate price driver. International Markets and Applied Materials (AMAT): A Deep Dive for Investors
• Neutral Sentiment: Management will participate in upcoming investor conferences — good for transparency and investor access but not a direct catalyst. Applied Materials to Participate in Upcoming Investor Conferences
• Neutral Sentiment: A DZ Bank note moved the rating to “hold” (an incremental, neutral signal relative to the stronger buy/upgrade flow from other shops). DZ Bank / Zacks report

Insider Transactions at Applied Materials

In other Applied Materials news, CAO Adam Sanders sold 609 shares of the firm’s stock in a transaction that occurred on Monday, December 1st. The shares were sold at an average price of $255.53, for a total value of $155,617.77. Following the sale, the chief accounting officer owned 4,413 shares in the company, valued at $1,127,653.89. This trade represents a 12.13% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. Also, SVP Teri A. Little sold 4,000 shares of the company’s stock in a transaction on Tuesday, November 25th. The stock was sold at an average price of $238.24, for a total transaction of $952,960.00. Following the transaction, the senior vice president owned 84,351 shares of the company’s stock, valued at $20,095,782.24. This trade represents a 4.53% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 0.30% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Applied Materials

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Cornerstone Financial Management LLC bought a new position in shares of Applied Materials during the fourth quarter valued at about $25,000. Marquette Asset Management LLC boosted its holdings in Applied Materials by 150.0% during the 3rd quarter. Marquette Asset Management LLC now owns 125 shares of the manufacturing equipment provider’s stock valued at $26,000 after acquiring an additional 75 shares during the period. Redmont Wealth Advisors LLC bought a new position in Applied Materials during the 3rd quarter worth approximately $26,000. Wilkerson Advisory Group LLC purchased a new position in Applied Materials in the 4th quarter worth approximately $26,000. Finally, Highline Wealth Partners LLC lifted its position in Applied Materials by 48.7% in the fourth quarter. Highline Wealth Partners LLC now owns 116 shares of the manufacturing equipment provider’s stock valued at $30,000 after purchasing an additional 38 shares during the last quarter. 80.56% of the stock is currently owned by hedge funds and other institutional investors.

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.