Applied Materials (NASDAQ:AMAT) Shares Up 1.2% – Should You Buy?

Applied Materials, Inc. (NASDAQ:AMAT) shares shot up 1.2% on Monday . The stock traded as high as $353.50 and last traded at $352.62. 2,501,812 shares changed hands during mid-day trading, a decline of 67% from the average session volume of 7,649,362 shares. The stock had previously closed at $348.47.

Analysts Set New Price Targets

A number of analysts recently commented on AMAT shares. Weiss Ratings reaffirmed a “buy (b-)” rating on shares of Applied Materials in a research report on Friday, March 27th. Deutsche Bank Aktiengesellschaft reaffirmed a “buy” rating and issued a $450.00 price objective on shares of Applied Materials in a research note on Friday, February 13th. The Goldman Sachs Group raised their target price on Applied Materials from $310.00 to $390.00 and gave the stock a “buy” rating in a research note on Friday, February 13th. Summit Insights upgraded Applied Materials from a “hold” rating to a “buy” rating in a research note on Friday, February 13th. Finally, Needham & Company LLC raised their price target on Applied Materials from $390.00 to $440.00 and gave the company a “buy” rating in a report on Friday, February 13th. One analyst has rated the stock with a Strong Buy rating, twenty-six have given a Buy rating and seven have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $363.46.

Applied Materials Stock Performance

The firm has a market capitalization of $279.84 billion, a PE ratio of 36.09, a P/E/G ratio of 1.55 and a beta of 1.64. The business has a 50-day simple moving average of $347.12 and a 200-day simple moving average of $282.81. The company has a debt-to-equity ratio of 0.30, a current ratio of 2.71 and a quick ratio of 1.94.

Applied Materials (NASDAQ:AMAT) last issued its earnings results on Thursday, February 12th. The manufacturing equipment provider reported $2.38 EPS for the quarter, topping analysts’ consensus estimates of $2.21 by $0.17. The business had revenue of $7.01 billion for the quarter, compared to analyst estimates of $6.88 billion. Applied Materials had a net margin of 27.78% and a return on equity of 37.52%. The company’s quarterly revenue was down 2.1% compared to the same quarter last year. During the same period last year, the company posted $2.38 earnings per share. Applied Materials has set its Q2 2026 guidance at 2.440-2.840 EPS. Equities research analysts expect that Applied Materials, Inc. will post 9.38 earnings per share for the current fiscal year.

Applied Materials Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, June 11th. Investors of record on Thursday, May 21st will be given a dividend of $0.53 per share. This is a boost from Applied Materials’s previous quarterly dividend of $0.46. This represents a $2.12 annualized dividend and a yield of 0.6%. The ex-dividend date is Thursday, May 21st. Applied Materials’s dividend payout ratio (DPR) is 18.83%.

Insider Activity at Applied Materials

In related news, CAO Adam Sanders sold 534 shares of the stock in a transaction dated Tuesday, February 24th. The stock was sold at an average price of $379.16, for a total transaction of $202,471.44. Following the transaction, the chief accounting officer owned 4,625 shares of the company’s stock, valued at approximately $1,753,615. This represents a 10.35% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CFO Brice Hill sold 5,000 shares of the firm’s stock in a transaction on Tuesday, February 17th. The shares were sold at an average price of $361.21, for a total transaction of $1,806,050.00. Following the completion of the sale, the chief financial officer owned 138,565 shares in the company, valued at $50,051,063.65. The trade was a 3.48% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 12,003 shares of company stock valued at $4,484,189. 0.30% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Cornerstone Financial Management LLC purchased a new position in shares of Applied Materials in the 4th quarter valued at about $25,000. Marquette Asset Management LLC raised its position in shares of Applied Materials by 150.0% in the 3rd quarter. Marquette Asset Management LLC now owns 125 shares of the manufacturing equipment provider’s stock worth $26,000 after buying an additional 75 shares during the period. Redmont Wealth Advisors LLC acquired a new stake in shares of Applied Materials in the third quarter worth $26,000. Wilkerson Advisory Group LLC purchased a new position in shares of Applied Materials in the fourth quarter valued at $26,000. Finally, Highline Wealth Partners LLC increased its holdings in Applied Materials by 48.7% during the 4th quarter. Highline Wealth Partners LLC now owns 116 shares of the manufacturing equipment provider’s stock worth $30,000 after purchasing an additional 38 shares during the last quarter. 80.56% of the stock is currently owned by hedge funds and other institutional investors.

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.