Applied Materials’ (AMAT) “Buy” Rating Reiterated at TD Cowen

Applied Materials (NASDAQ:AMAT)‘s stock had its “buy” rating reissued by research analysts at TD Cowen in a research note issued to investors on Friday,Benzinga reports. They currently have a $700.00 target price on the manufacturing equipment provider’s stock. TD Cowen’s target price would suggest a potential upside of 37.98% from the company’s previous close.

A number of other brokerages have also commented on AMAT. Wells Fargo & Company increased their price target on shares of Applied Materials from $715.00 to $740.00 and gave the stock an “overweight” rating in a report on Friday, June 26th. UBS Group set a $675.00 target price on shares of Applied Materials in a research report on Friday. Royal Bank Of Canada increased their target price on Applied Materials from $520.00 to $600.00 and gave the company an “outperform” rating in a research note on Friday. Barclays lifted their price target on Applied Materials from $500.00 to $590.00 and gave the stock an “overweight” rating in a research note on Thursday, June 11th. Finally, Truist Financial set a $575.00 price objective on Applied Materials in a report on Thursday, May 28th. One research analyst has rated the stock with a Strong Buy rating, twenty-seven have assigned a Buy rating and seven have assigned a Hold rating to the stock. According to data from MarketBeat.com, Applied Materials currently has a consensus rating of “Moderate Buy” and a consensus target price of $624.35.

Applied Materials Price Performance

Shares of NASDAQ:AMAT traded down $27.22 on Friday, hitting $507.32. The company’s stock had a trading volume of 7,343,546 shares, compared to its average volume of 8,223,466. The company has a 50-day simple moving average of $563.06 and a 200 day simple moving average of $444.45. Applied Materials has a 1 year low of $154.46 and a 1 year high of $739.67. The company has a market capitalization of $402.79 billion, a PE ratio of 47.62, a PEG ratio of 1.38 and a beta of 1.61. The company has a debt-to-equity ratio of 0.22, a current ratio of 2.51 and a quick ratio of 1.80.

Applied Materials (NASDAQ:AMAT) last issued its quarterly earnings data on Thursday, August 13th. The manufacturing equipment provider reported $3.50 EPS for the quarter, topping the consensus estimate of $3.40 by $0.10. The company had revenue of $9.12 billion during the quarter, compared to analyst estimates of $8.99 billion. Applied Materials had a return on equity of 36.97% and a net margin of 29.31%.Applied Materials’s revenue was up 24.8% on a year-over-year basis. During the same quarter in the previous year, the firm earned $2.48 earnings per share. Applied Materials has set its Q4 2026 guidance at 3.820-4.220 EPS. Sell-side analysts forecast that Applied Materials will post 12.22 EPS for the current fiscal year.

Insider Activity

In other news, SVP Omkaram Nalamasu sold 24,263 shares of the business’s stock in a transaction dated Tuesday, June 16th. The stock was 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 of the company’s stock, valued at approximately $87,184,361.88. The trade was a 14.17% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Thomas J. Iannotti sold 9,250 shares of the stock in a transaction dated Tuesday, June 16th. The shares were sold at an average price of $599.77, for a total value of $5,547,872.50. Following the sale, the director owned 40,559 shares of the company’s stock, valued at $24,326,071.43. This represents a 18.57% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 278,088 shares of company stock valued at $169,654,805. Company insiders own 0.30% of the company’s stock.

Institutional Trading of Applied Materials

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Verity Asset Management Inc. purchased a new stake in Applied Materials during the 2nd quarter valued at $316,000. Park Place Capital Corp raised its stake in shares of Applied Materials by 340.1% during the second quarter. Park Place Capital Corp now owns 5,977 shares of the manufacturing equipment provider’s stock valued at $4,321,000 after acquiring an additional 4,619 shares during the last quarter. Peak Asset Management LLC boosted its holdings in shares of Applied Materials by 29.8% during the second quarter. Peak Asset Management LLC now owns 15,352 shares of the manufacturing equipment provider’s stock worth $11,100,000 after purchasing an additional 3,521 shares during the period. Fiduciary Financial Advisors purchased a new stake in shares of Applied Materials during the second quarter worth about $757,000. Finally, Vega Investment Solutions bought a new stake in shares of Applied Materials in the second quarter worth about $22,681,000. Institutional investors own 80.56% of the company’s stock.

More Applied Materials News

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

• Positive Sentiment: AI demand is driving strong fundamentals. Fiscal Q3 revenue rose 24.8% year over year to $9.12 billion, exceeding the $8.99 billion consensus estimate, while adjusted EPS of $3.50 topped expectations near $3.40. Advanced packaging, memory and AI infrastructure were key growth drivers. Applied Materials Q3 Earnings Beat Estimates, Revenues Rise Y/Y
• Positive Sentiment: Management raised near-term expectations and sees extended visibility. Q4 revenue guidance of $9.8 billion-$10.8 billion and EPS guidance of $3.82-$4.22 are above consensus estimates of approximately $9.5 billion and $3.65, respectively. Management also cited stronger systems growth and customer demand extending into fiscal 2027 and beyond. Applied Materials Forecasts Quarterly Revenue Above Estimates
• Positive Sentiment: Analyst sentiment remains supportive. JPMorgan raised its price target to $660 with an overweight rating, while RBC increased its target to $600 and assigned an outperform rating. Needham maintained a buy rating with a $740 target. Stock Market Today
• Neutral Sentiment: Investor focus is shifting to execution. Future results will be judged on systems growth, gross margins and evidence that AI-related capital spending is translating into sustained orders. Applied Materials reported a 50.4% non-GAAP Q3 gross margin, and management will participate in upcoming investor conferences. Applied Materials to Participate in Upcoming Investor Conferences
• Negative Sentiment: The earnings beat was not large enough for the market. After AMAT’s substantial year-to-date advance, investors were looking for an even faster growth trajectory. Reports also cited competitive pressure and concerns that guidance, while above estimates, did not clear the elevated “perfect execution” bar. Applied Materials Slips as Investors Seek Faster Growth After Stellar Run

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.