Applied Materials (NASDAQ:AMAT) Earns “Outperform” Rating from Royal Bank Of Canada

Applied Materials (NASDAQ:AMAT)‘s stock had its “outperform” rating reiterated by stock analysts at Royal Bank Of Canada in a research report issued on Friday, Benzinga reports. They currently have a $600.00 price target on the manufacturing equipment provider’s stock. Royal Bank Of Canada‘s target price suggests a potential upside of 67.86% from the stock’s previous close.

AMAT has been the topic of several other reports. Evercore set a $590.00 target price on Applied Materials in a report on Thursday, October 15th. UBS Group upped their price target on Applied Materials from $675.00 to $695.00 and gave the stock a “buy” rating in a research note on Tuesday, September 1st. Deutsche Bank reissued a “buy” rating and set a $605.00 price objective (down from $680.00) on shares of Applied Materials in a report on Friday, August 14th. Argus set a $600.00 price objective on Applied Materials and gave the company a “buy” rating in a report on Tuesday, August 18th. Finally, HSBC cut their price objective on Applied Materials from $683.00 to $641.00 and set a “buy” rating on the stock in a research note on Friday, August 14th. Twenty-nine analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $604.09.

Applied Materials Stock Down 6.2%

Shares of Applied Materials stock traded down $23.50 during midday trading on Friday, reaching $357.44. 2,144,802 shares of the company’s stock traded hands, compared to its average volume of 7,896,606. The company has a market cap of $283.67 billion, a price-to-earnings ratio of 30.84, a price-to-earnings-growth ratio of 0.77 and a beta of 1.67. The company’s 50 day simple moving average is $439.22 and its 200 day simple moving average is $445.83. The company has a debt-to-equity ratio of 0.20, a quick ratio of 1.79 and a current ratio of 2.42. Applied Materials has a 52 week low of $203.40 and a 52 week high of $739.67.

Applied Materials (NASDAQ:AMAT) last released its quarterly earnings data 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. The business had revenue of $10.41 billion during the quarter, compared to analyst estimates of $10.30 billion. Applied Materials had a net margin of 30.05% and a return on equity of 38.02%. During the same quarter in the previous year, the business earned $2.17 EPS. Applied Materials has set its Q1 2027 guidance at 4.150-4.550 EPS. Equities analysts expect that Applied Materials will post 12.79 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Applied Materials news, Director Judy Bruner sold 1,000 shares of Applied Materials stock in a transaction that occurred on Tuesday, September 8th. The stock was sold at an average price of $465.00, for a total transaction of $465,000.00. Following the sale, the director directly owned 25,544 shares of the company’s stock, valued at approximately $11,877,960. The trade was a 3.77% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Brice Hill sold 7,500 shares of Applied Materials 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 sale, the chief financial officer directly owned 128,613 shares in the company, valued at $61,637,780.25. The trade was a 5.51% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 9,225 shares of company stock valued at $4,454,181 over the last quarter. Corporate insiders own 0.30% of the company’s stock.

Hedge Funds Weigh In On Applied Materials

Hedge funds have recently modified their holdings of the stock. 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 valued at $7,207,000 after purchasing an additional 212 shares in the last quarter. Xcelsior Advisor Partners LLC increased its position in shares of Applied Materials by 398.2% during the 3rd quarter. Xcelsior Advisor Partners LLC now owns 3,637 shares of the manufacturing equipment provider’s stock worth $1,860,000 after purchasing an additional 2,907 shares in the last quarter. Elgethun Capital Management lifted its holdings in Applied Materials by 8.2% during the 3rd quarter. Elgethun Capital Management now owns 1,060 shares of the manufacturing equipment provider’s stock valued at $542,000 after purchasing an additional 80 shares during the last quarter. Novare Capital Management LLC lifted its holdings in Applied Materials by 824.7% during the 3rd quarter. Novare Capital Management LLC now owns 3,588 shares of the manufacturing equipment provider’s stock valued at $1,835,000 after purchasing an additional 3,200 shares during the last quarter. Finally, Lifeworks Advisors LLC lifted its holdings in Applied Materials by 3.5% during the 3rd quarter. Lifeworks Advisors LLC now owns 4,582 shares of the manufacturing equipment provider’s stock valued at $2,343,000 after purchasing an additional 156 shares during the last quarter. 80.56% of the stock is owned by institutional investors and hedge funds.

Key Stories Impacting Applied Materials

Here are a few of the latest stories about AMAT:

• Positive Sentiment: Fiscal Q4 revenue reached a record $10.41 billion, up 53% year over year, while adjusted EPS of $4.16 beat estimates. First-quarter revenue guidance of $10.6 billion–$11.6 billion also topped consensus, and management expects to outgrow the wafer-fab equipment market in 2027. Applied Materials Announces Fourth Quarter and Fiscal Year 2026 Results
• Positive Sentiment: Management said chip demand remains well above supply, with customers seeking earlier equipment deliveries. Strong AI, memory and advanced-packaging demand supports the growth outlook, though component and clean-room capacity limit how quickly Applied can ship. Applied Materials Says Chip Demand Remains Much Higher Than Supply
• Negative Sentiment: Several analysts cut price targets, including Bank of America ($650 to $520) and Needham ($580 to $470), although both maintained Buy ratings. Summit Insights also downgraded AMAT from Buy to Hold. These moves may signal reduced expectations and add pressure after the earnings announcement. Bank of America analyst rating

About Applied Materials

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.