Applied Materials (NASDAQ:AMAT) Price Target Raised to $440.00

Applied Materials (NASDAQ:AMAT) had its target price boosted by Needham & Company LLC from $390.00 to $440.00 in a research note published on Friday morning, MarketBeat.com reports. They currently have a buy rating on the manufacturing equipment provider’s stock.

A number of other research analysts also recently weighed in on the company. BNP Paribas Exane upgraded Applied Materials to a “hold” rating in a report on Monday, November 17th. Royal Bank Of Canada reiterated an “outperform” rating and issued a $385.00 price objective on shares of Applied Materials in a report on Tuesday, February 10th. Citigroup raised their price objective on Applied Materials from $250.00 to $400.00 and gave the company a “buy” rating in a research report on Wednesday, February 4th. Barclays reaffirmed an “overweight” rating and issued a $450.00 target price on shares of Applied Materials in a research report on Friday. Finally, TD Cowen reissued a “buy” rating on shares of Applied Materials in a research report on Thursday, December 4th. Twenty-eight equities research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company. Based on data from MarketBeat, Applied Materials has an average rating of “Moderate Buy” and an average target price of $361.03.

Applied Materials Trading Up 8.1%

AMAT opened at $354.91 on Friday. Applied Materials has a one year low of $123.74 and a one year high of $376.32. The company has a debt-to-equity ratio of 0.30, a current ratio of 2.71 and a quick ratio of 1.94. The business has a 50 day simple moving average of $295.20 and a two-hundred day simple moving average of $237.05. The firm has a market capitalization of $281.70 billion, a price-to-earnings ratio of 36.33, a PEG ratio of 3.13 and a beta of 1.70.

Applied Materials (NASDAQ:AMAT) last released its quarterly earnings results on Thursday, February 12th. The manufacturing equipment provider reported $2.38 earnings per share for the quarter, beating the consensus estimate of $2.19 by $0.19. The business had revenue of $7.01 billion for the quarter, compared to analysts’ expectations of $6.88 billion. Applied Materials had a net margin of 27.78% and a return on equity of 37.52%. The firm’s revenue for the quarter was down 2.1% compared to the same quarter last year. During the same quarter in the previous year, the business posted $2.38 earnings per share. Applied Materials has set its Q2 2026 guidance at 2.440-2.840 EPS. Analysts predict that Applied Materials will post 9.38 EPS for the current year.

Applied Materials Announces Dividend

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

Insider Activity at Applied Materials

In related news, SVP Teri A. Little sold 4,000 shares of the company’s stock in a transaction that occurred on Tuesday, November 25th. The stock was sold at an average price of $238.24, for a total value of $952,960.00. Following the transaction, the senior vice president directly owned 84,351 shares of the company’s stock, valued at approximately $20,095,782.24. This represents a 4.53% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, CAO Adam Sanders sold 609 shares of Applied Materials stock in a transaction on Monday, December 1st. The stock was sold at an average price of $255.53, for a total value of $155,617.77. Following the completion of the sale, the chief accounting officer directly owned 4,413 shares of the company’s stock, valued at approximately $1,127,653.89. The trade was a 12.13% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 8,609 shares of company stock valued at $2,044,898 in the last three months. 0.30% of the stock is owned by insiders.

Hedge Funds Weigh In On Applied Materials

A number of hedge funds have recently bought and sold shares of AMAT. IFG Advisory LLC increased its stake in Applied Materials by 1,008.1% during the 2nd quarter. IFG Advisory LLC now owns 36,156 shares of the manufacturing equipment provider’s stock worth $6,619,000 after buying an additional 32,893 shares during the period. Grandfield & Dodd LLC grew its stake in shares of Applied Materials by 6.9% in the third quarter. Grandfield & Dodd LLC now owns 269,511 shares of the manufacturing equipment provider’s stock worth $55,180,000 after acquiring an additional 17,397 shares in the last quarter. Atlantic Union Bankshares Corp grew its stake in shares of Applied Materials by 23.0% in the second quarter. Atlantic Union Bankshares Corp now owns 12,643 shares of the manufacturing equipment provider’s stock worth $2,315,000 after acquiring an additional 2,363 shares in the last quarter. Sienna Gestion increased its position in shares of Applied Materials by 10.2% during the second quarter. Sienna Gestion now owns 113,221 shares of the manufacturing equipment provider’s stock worth $18,924,000 after acquiring an additional 10,468 shares during the period. Finally, Westfield Capital Management Co. LP raised its stake in shares of Applied Materials by 13,360.6% in the second quarter. Westfield Capital Management Co. LP now owns 694,431 shares of the manufacturing equipment provider’s stock valued at $127,129,000 after acquiring an additional 689,272 shares in the last quarter. Hedge funds and other institutional investors own 80.56% of the company’s stock.

Applied Materials News Roundup

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

• Positive Sentiment: Q1 results beat consensus — EPS of $2.38 topped estimates and revenue of $7.01B beat expectations, evidence that services and AI-related demand are offsetting cyclical headwinds. This beat is the primary catalyst for the rally. Applied Materials Q1 Earnings Beat Estimates, Revenues Fall Y/Y
• Positive Sentiment: Strong guidance and AI-driven order cadence — management set Q2 EPS and revenue guidance above Street consensus and highlighted surging orders tied to AI processors and tightening memory demand, supporting a view of sustained equipment spending. Applied Materials jumps as AI demand drives chipmaking tool orders
• Positive Sentiment: Analyst upgrades and price-target increases — multiple firms raised ratings/targets (examples cited include Needham, Mizuho, Citigroup, B. Riley), which amplifies buying momentum and reduces near-term downside from sell-side skepticism.
• Neutral Sentiment: Regulatory settlement resolved — Applied reached a $252.5M civil settlement with the U.S. Department of Commerce over prior export issues; DOJ and SEC closed related probes without action. The payment is a one-time cost but it removes regulatory overhang going forward. Applied Materials Reaches Resolution with the U.S. Department of Commerce
• Negative Sentiment: Valuation concerns and bear case commentary — some analysts and op-eds argue the stock’s run has left limited upside and warn of pricey multiples; this creates the risk of profit-taking if future execution or guidance lags. Applied Materials: Little Opportunity Left After A Monstrous 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.