Applied Materials (NASDAQ:AMAT) Lowered to Hold Rating by Wall Street Zen

Wall Street Zen cut shares of Applied Materials (NASDAQ:AMAT) from a buy rating to a hold rating in a report issued on Saturday morning.

Several other analysts have also issued reports on the stock. Susquehanna upped their price target on shares of Applied Materials from $575.00 to $900.00 and gave the stock a “positive” rating in a research report on Tuesday, June 30th. Stifel Nicolaus lifted their price objective on shares of Applied Materials from $530.00 to $650.00 and gave the company a “buy” rating in a research report on Friday, July 10th. KeyCorp boosted their price objective on shares of Applied Materials from $550.00 to $750.00 and gave the stock an “overweight” rating in a research note on Monday, June 29th. Royal Bank Of Canada upped their target price on shares of Applied Materials from $500.00 to $520.00 and gave the company an “outperform” rating in a report on Friday, May 15th. Finally, Wolfe Research raised their target price on shares of Applied Materials from $500.00 to $550.00 and gave the company an “outperform” rating in a research note on Friday, May 15th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-seven have given a Buy rating and six have assigned a Hold rating to the stock. According to data from MarketBeat, Applied Materials currently has a consensus rating of “Moderate Buy” and an average price target of $599.19.

Applied Materials Stock Up 1.2%

AMAT stock opened at $507.67 on Friday. The company has a market cap of $403.07 billion, a price-to-earnings ratio of 47.67, a P/E/G ratio of 1.29 and a beta of 1.57. Applied Materials has a twelve month low of $154.46 and a twelve month high of $739.67. The business has a 50 day moving average price of $550.86 and a two-hundred day moving average price of $429.98. The company has a quick ratio of 1.80, a current ratio of 2.51 and a debt-to-equity ratio of 0.22.

Applied Materials (NASDAQ:AMAT) last announced its quarterly earnings data on Thursday, May 14th. The manufacturing equipment provider reported $2.86 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.68 by $0.18. The company had revenue of $7.91 billion for the quarter, compared to analysts’ expectations of $7.68 billion. Applied Materials had a return on equity of 36.97% and a net margin of 29.31%.The business’s revenue was up 11.4% compared to the same quarter last year. During the same quarter in the prior year, the business posted $2.39 EPS. Applied Materials has set its Q3 2026 guidance at 3.160-3.560 EPS. Analysts anticipate that Applied Materials will post 12.14 EPS for the current fiscal year.

Applied Materials Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Thursday, August 20th will be issued a $0.53 dividend. This represents a $2.12 annualized dividend and a dividend yield of 0.4%. The ex-dividend date is Thursday, August 20th. Applied Materials’s payout ratio is currently 19.91%.

Insider Activity at Applied Materials

In other news, Director Thomas J. Iannotti sold 9,250 shares of the firm’s stock in a transaction dated Tuesday, June 16th. The shares were sold at an average price of $599.77, for a total transaction of $5,547,872.50. Following the completion of the sale, the director owned 40,559 shares in the company, valued at approximately $24,326,071.43. This trade represents a 18.57% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, insider Prabu G. Raja sold 10,000 shares of the company’s stock in a transaction dated Thursday, June 18th. The shares were sold at an average price of $633.53, for a total transaction of $6,335,300.00. Following the completion of the transaction, the insider owned 346,642 shares in the company, valued at approximately $219,608,106.26. This trade represents a 2.80% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 278,088 shares of company stock worth $169,654,805 in the last quarter. 0.30% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Applied Materials

Several institutional investors and hedge funds have recently made changes to their positions in AMAT. Brighton Jones LLC lifted its holdings in shares of Applied Materials by 28.0% during the fourth quarter. Brighton Jones LLC now owns 12,674 shares of the manufacturing equipment provider’s stock worth $2,061,000 after buying an additional 2,771 shares in the last quarter. Sivia Capital Partners LLC grew its stake in shares of Applied Materials by 26.7% in the second quarter. Sivia Capital Partners LLC now owns 3,225 shares of the manufacturing equipment provider’s stock valued at $590,000 after acquiring an additional 679 shares in the last quarter. Forefront Wealth Partners LLC acquired a new position in shares of Applied Materials in the second quarter valued at about $410,000. Schnieders Capital Management LLC. increased its position in Applied Materials by 30.1% during the second quarter. Schnieders Capital Management LLC. now owns 15,003 shares of the manufacturing equipment provider’s stock worth $2,747,000 after acquiring an additional 3,469 shares during the period. Finally, Sei Investments Co. increased its position in Applied Materials by 59.3% during the second quarter. Sei Investments Co. now owns 422,694 shares of the manufacturing equipment provider’s stock worth $77,383,000 after acquiring an additional 157,426 shares during the period. Institutional investors and hedge funds own 80.56% of the company’s stock.

Key Headlines Impacting Applied Materials

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

• Positive Sentiment: Semiconductor stocks rallied this week on strong technology earnings, while three semiconductor ETFs ranked among the largest recipients of new investor cash. The sector-wide buying provides a favorable backdrop for Applied Materials. Semiconductor ETFs Draw Cash This Week as Chip Stocks Rally
• Positive Sentiment: A bullish analysis maintains a “Strong Buy” view after AMAT’s substantial multiyear advance, citing the company’s exposure to AI-driven semiconductor equipment demand and continued operating momentum. Applied Materials: Why I’m Maintaining A Strong Buy After A 45% Run
• Positive Sentiment: Zacks highlighted Applied Materials’ AI-driven momentum, record results, expanding margins and improving customer visibility. These factors reinforce expectations for durable growth. AMAT recently exceeded quarterly earnings and revenue estimates, with revenue increasing year over year and upbeat quarterly earnings guidance. The Zacks Analyst Blog Highlights Applied Materials
• Neutral Sentiment: Coverage of Lam Research’s surge indicates that AI equipment demand was already visible in industry results. This supports the semiconductor-equipment cycle generally, although it does not provide a company-specific update for AMAT. Lam Research Stock’s Surge Was Building In Plain Sight
• Negative Sentiment: Despite long-term support from initiatives such as the AI Materials Foundry, one valuation analysis argues that AMAT may not be a bargain after a 218.9% five-year gain. The elevated valuation and high expectations could limit additional upside or increase sensitivity to any slowdown in AI-related spending. Applied Materials Stock May Not Be A Bargain Despite AI Materials Foundry News

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.