Applied Materials (NASDAQ:AMAT) Trading Up 1.4% After Dividend Announcement

Applied Materials, Inc. (NASDAQ:AMAT) shares traded up 1.4% during mid-day trading on Tuesday after the company announced a dividend. The stock traded as high as $525.98 and last traded at $499.21. 11,053,616 shares changed hands during trading, an increase of 48% from the average session volume of 7,458,796 shares. The stock had previously closed at $492.17.

The newly announced dividend which will be paid on Thursday, September 10th. Shareholders of record on Thursday, August 20th will be paid a dividend of $0.53 per share. This represents a $2.12 annualized dividend and a yield of 0.4%. The ex-dividend date of this dividend is Thursday, August 20th. Applied Materials’s payout ratio is 19.91%.

Wall Street Analyst Weigh In

Several equities research analysts recently commented on the company. Truist Financial set a $575.00 price target on Applied Materials in a research note on Thursday, May 28th. UBS Group boosted their price target on Applied Materials from $515.00 to $570.00 and gave the company a “buy” rating in a research note on Wednesday. Citigroup boosted their price target on Applied Materials from $420.00 to $520.00 and gave the company a “buy” rating in a research note on Tuesday, May 12th. JPMorgan Chase & Co. boosted their price target on Applied Materials from $400.00 to $515.00 and gave the company an “overweight” rating in a research note on Friday, May 15th. Finally, Sanford C. Bernstein reissued an “outperform” rating and issued a $525.00 price target on shares of Applied Materials in a research note on Friday, May 15th. Twenty-seven analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the stock. According to MarketBeat.com, Applied Materials presently has an average rating of “Moderate Buy” and a consensus target price of $483.03.

Applied Materials Trading Up 11.2%

The stock has a market capitalization of $438.77 billion, a price-to-earnings ratio of 51.89, a price-to-earnings-growth ratio of 1.40 and a beta of 1.67. The company has a fifty day moving average of $418.73 and a two-hundred day moving average of $348.79. The company has a current ratio of 2.51, a quick ratio of 1.80 and a debt-to-equity ratio of 0.22.

Applied Materials (NASDAQ:AMAT) last issued its quarterly earnings results on Thursday, May 14th. The manufacturing equipment provider reported $2.86 EPS for the quarter, topping analysts’ consensus estimates of $2.68 by $0.18. The company had revenue of $7.91 billion during the quarter, compared to analyst estimates of $7.68 billion. Applied Materials had a return on equity of 36.97% and a net margin of 29.31%.The company’s quarterly revenue was up 11.4% compared to the same quarter last year. During the same period in the previous year, the company earned $2.39 earnings per share. Applied Materials has set its Q3 2026 guidance at 3.160-3.560 EPS. On average, research analysts expect that Applied Materials, Inc. will post 12.02 EPS for the current year.

Trending Headlines about Applied Materials

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

• Positive Sentiment: Barclays reiterated an Overweight rating on Applied Materials (AMAT) and raised its outlook, reinforcing the bullish case for semiconductor equipment demand tied to new chip supply and AI infrastructure. Applied Materials and KLA Are Surging. Why You Should Buy the Stocks, Says This Analyst.
• Positive Sentiment: Analysts continue to highlight AMAT as a key beneficiary of high-bandwidth memory and AI-related spending, with Evercore ISI reiterating a Buy rating and other firms maintaining bullish targets. Applied Materials (AMAT) Is One Of the Best High-Bandwidth Memory Stocks To Buy
• Positive Sentiment: Applied Materials’ recent Singapore expansion, including a new $500 million manufacturing campus, is being viewed as support for long-term AI chip demand and higher production capacity. Applied Materials Expands Singapore Manufacturing to Support AI Chip Demand
• Neutral Sentiment: The company also announced a quarterly dividend of $0.53 per share, underscoring capital return discipline, though this is unlikely to be the main driver of the stock’s move. How Record Margins, AI Demand Visibility and Singapore Expansion At Applied Materials (AMAT) Has Changed Its Investment Story

Insider Buying and Selling

In other news, CAO Adam Sanders sold 268 shares of the stock in a transaction on Friday, May 22nd. The stock was sold at an average price of $434.22, for a total transaction of $116,370.96. Following the sale, the chief accounting officer owned 4,280 shares in the company, valued at approximately $1,858,461.60. This represents a 5.89% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CFO Brice Hill sold 2,500 shares of the firm’s stock in a transaction dated Wednesday, June 3rd. The shares were sold at an average price of $498.86, for a total value of $1,247,150.00. Following the completion of the transaction, the chief financial officer owned 136,113 shares in the company, valued at approximately $67,901,331.18. This represents a 1.80% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 53,896 shares of company stock valued at $27,135,121. 0.30% of the stock is owned by insiders.

Hedge Funds Weigh In On Applied Materials

Hedge funds have recently added to or reduced their stakes in the company. Cornerstone Financial Management LLC bought a new position in Applied Materials in the fourth quarter valued at about $25,000. Redmont Wealth Advisors LLC bought a new position in Applied Materials in the third quarter valued at about $26,000. Wilkerson Advisory Group LLC bought a new position in Applied Materials in the fourth quarter valued at about $26,000. Financial Freedom LLC bought a new position in Applied Materials during the first quarter worth about $28,000. Finally, Highline Wealth Partners LLC boosted its holdings in Applied Materials by 48.7% during the fourth quarter. Highline Wealth Partners LLC now owns 116 shares of the manufacturing equipment provider’s stock worth $30,000 after buying an additional 38 shares during the last quarter. Institutional investors own 80.56% of the company’s stock.

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.