Applied Materials (NASDAQ:AMAT) Stock Price Up 2% – Time to Buy?

Applied Materials, Inc. (NASDAQ:AMAT) rose 2% during trading on Tuesday. The stock traded as high as $390.00 and last traded at $381.92. 5,521,233 shares traded hands during mid-day trading, a decline of 30% from the average daily volume of 7,860,765 shares. The stock had previously closed at $374.53.

Key Headlines Impacting Applied Materials

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

• Positive Sentiment: Recent fundamentals have been strong: adjusted earnings per share grew 41%, DRAM revenue rose 52%, and the company raised revenue guidance. Ongoing investment in capacity and hybrid-bonding technology, along with a larger stake in Besi, could support future growth. Article: Did Earnings Growth Just Shift Applied Materials Investment Narrative?
• Neutral Sentiment: Morgan Stanley cut its price target to $538 from $563 and maintained an Equal Weight/Hold rating. The lower target reflects a more cautious view, although it remains above the price cited in the report; the analyst sees promising demand balanced by execution risks. Article: Applied Materials—Promising Demand Offset by Execution Risks
• Negative Sentiment: AMAT has fallen nearly 29% in a month amid a broader semiconductor-sector selloff, including pressure linked to Intel’s outlook and ETF selling. The November 12 results could either reassure investors or deepen concerns if demand, guidance, or execution disappoints. Article: Applied Materials Just Dropped 29% in a Month

Wall Street Analysts Forecast Growth

Several brokerages have commented on AMAT. B. Riley Financial restated a “buy” rating and issued a $700.00 price objective (down from $790.00) on shares of Applied Materials in a report on Friday, August 14th. JPMorgan Chase & Co. upped their target price on Applied Materials from $515.00 to $660.00 and gave the stock an “overweight” rating in a report on Friday, August 14th. TD Cowen reiterated a “buy” rating and set a $700.00 target price on shares of Applied Materials in a report on Friday, August 14th. Citigroup reissued a “buy” rating and issued a $710.00 target price (up from $550.00) on shares of Applied Materials in a research report on Monday, August 3rd. Finally, Morgan Stanley lowered their target price on Applied Materials from $563.00 to $538.00 and set an “equal weight” rating for the company in a research note on Tuesday. Thirty equities research analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the stock. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and an average price target of $632.01.

Applied Materials Price Performance

The firm has a fifty day moving average of $455.30 and a 200 day moving average of $443.98. The company has a market capitalization of $303.09 billion, a P/E ratio of 32.92, a P/E/G ratio of 1.16 and a beta of 1.60. The company has a current ratio of 2.42, a quick ratio of 1.79 and a debt-to-equity ratio of 0.20.

Applied Materials (NASDAQ:AMAT) last posted its earnings results on Thursday, August 13th. The manufacturing equipment provider reported $3.50 EPS for the quarter, topping analysts’ consensus estimates of $3.40 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 $9.12 billion during the quarter, compared to the consensus estimate of $8.99 billion. During the same quarter in the previous year, the firm posted $2.48 EPS. The firm’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 research analysts anticipate that Applied Materials, Inc. will post 12.79 EPS for the current year.

Applied Materials Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Thursday, November 19th will be given a dividend of $0.53 per share. This represents a $2.12 dividend on an annualized basis and a dividend yield of 0.6%. The ex-dividend date of this dividend is Thursday, November 19th. Applied Materials’s payout ratio is presently 18.28%.

Insider Buying and Selling at Applied Materials

In related news, Director Judy Bruner sold 1,000 shares of the company’s stock in a transaction on Tuesday, September 8th. The shares were sold at an average price of $465.00, for a total transaction of $465,000.00. Following the completion of the transaction, the director owned 25,544 shares in the company, valued at approximately $11,877,960. This represents a 3.77% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CFO Brice Hill sold 7,500 shares of the firm’s stock in a transaction that occurred on Tuesday, August 25th. The shares were sold at an average price of $479.25, for a total value of $3,594,375.00. Following the transaction, the chief financial officer owned 128,613 shares of the company’s stock, valued at $61,637,780.25. This represents a 5.51% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 9,225 shares of company stock valued at $4,454,181 over the last ninety days. 0.30% of the stock is currently owned by company insiders.

Institutional Trading of Applied Materials

A number of large investors have recently modified their holdings of the company. Harborfront Financial Group LLC bought a new stake in Applied Materials during the 2nd quarter valued at $27,000. Orion Capital Management LLC bought a new position in shares of Applied Materials in the 2nd quarter worth $33,000. Highland Investment Advisors LLC bought a new position in shares of Applied Materials in the 2nd quarter worth $33,000. BOK Financial Private Wealth Inc. purchased a new stake in shares of Applied Materials during the 2nd quarter worth $41,000. Finally, Curry Webb Wealth Management LLC purchased a new stake in shares of Applied Materials during the 3rd quarter worth $30,000. Hedge funds and other institutional investors own 80.56% of the company’s stock.

Applied Materials Company Profile

Applied Materials, Inc is a technology company that supplies equipment, services and software used to manufacture semiconductors and advanced displays. Its products help customers fabricate the integrated circuits and other components used in computers, mobile devices, data centers, automobiles and a range of connected technologies.

The company’s offerings include systems for materials engineering, wafer fabrication, inspection and process control, along with equipment and services designed to improve manufacturing productivity and yield.