Applied Materials, Inc. (NASDAQ:AMAT) Given Consensus Rating of “Moderate Buy” by Brokerages

Shares of Applied Materials, Inc. (NASDAQ:AMAT) have been assigned a consensus recommendation of “Moderate Buy” from the thirty-five analysts that are covering the stock, Marketbeat.com reports. Eight analysts have rated the stock with a hold recommendation and twenty-seven have given a buy recommendation to the company. The average 12 month price objective among brokers that have covered the stock in the last year is $518.1935.

AMAT has been the subject of several analyst reports. Mizuho boosted their price target on Applied Materials from $500.00 to $540.00 and gave the company an “outperform” rating in a report on Wednesday, May 27th. Erste Group Bank upgraded Applied Materials from a “hold” rating to a “buy” rating in a report on Monday, April 27th. Morgan Stanley reiterated an “equal weight” rating and issued a $502.00 price target (up from $454.00) on shares of Applied Materials in a report on Friday, May 15th. Bank of America boosted their price objective on shares of Applied Materials from $540.00 to $720.00 and gave the company a “buy” rating in a research note on Tuesday, June 23rd. Finally, HSBC began coverage on shares of Applied Materials in a research note on Friday, May 8th. They set a “buy” rating and a $517.00 price objective for the company.

Applied Materials News Roundup

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

• Positive Sentiment: Applied Materials introduced new systems for DRAM and advanced packaging, expanding its role in AI chip manufacturing and potentially boosting future demand. Applied Materials Introduces New Systems to Accelerate DRAM and Advanced Packaging for AI Chips
• Positive Sentiment: Analysts said AMAT’s event highlighted strong opportunities in DRAM and advanced packaging, reinforcing the company’s AI-driven growth narrative. Applied Materials’ event focuses on DRAM, and advanced packaging: analysts
• Positive Sentiment: Wall Street commentary remains constructive, with analysts still confident in Applied Materials’ strong competitive position. AMAT stock gets thumbs up from Wall Street – analysts remain confident about Applied Materials’ strong market position
• Neutral Sentiment: Some coverage suggests the stock may be looking expensive after its recent rally, which could limit near-term upside even if the long-term AI story stays intact. Applied Materials stock looks pricey—can AI demand justify the rally?
• Neutral Sentiment: One analysis noted that Applied Materials’ aggressive investment strategy may pressure cash flow in the near term, even though it supports longer-term growth. Can AMAT’s Investment Strategy Lift Future Cash Flow Growth?

Insider Activity at Applied Materials

In other news, insider Prabu G. Raja sold 10,000 shares of the business’s stock in a transaction on 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 sale, the insider directly owned 346,642 shares of the company’s stock, valued at $219,608,106.26. The trade was a 2.80% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, SVP Timothy M. Deane sold 8,621 shares of the business’s stock in a transaction on Monday, June 15th. The shares were sold at an average price of $590.76, for a total transaction of $5,092,941.96. Following the sale, the senior vice president directly owned 134,631 shares of the company’s stock, valued at $79,534,609.56. This represents a 6.02% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 199,767 shares of company stock worth $114,104,709. 0.30% of the stock is owned by corporate insiders.

Institutional Trading of Applied Materials

A number of institutional investors have recently added to or reduced their stakes in the business. Basecamp Wealth Advisors LLC boosted its position in Applied Materials by 0.7% during the 1st quarter. Basecamp Wealth Advisors LLC now owns 3,288 shares of the manufacturing equipment provider’s stock worth $1,124,000 after purchasing an additional 22 shares during the period. Private Wealth Management Group LLC boosted its position in Applied Materials by 4.9% during the 1st quarter. Private Wealth Management Group LLC now owns 531 shares of the manufacturing equipment provider’s stock worth $181,000 after purchasing an additional 25 shares during the period. One Day In July LLC boosted its position in Applied Materials by 2.4% during the 1st quarter. One Day In July LLC now owns 1,089 shares of the manufacturing equipment provider’s stock worth $372,000 after purchasing an additional 26 shares during the period. Pinnacle Bancorp Inc. boosted its position in Applied Materials by 1.3% during the 1st quarter. Pinnacle Bancorp Inc. now owns 2,082 shares of the manufacturing equipment provider’s stock worth $712,000 after purchasing an additional 27 shares during the period. Finally, Horst & Graben Wealth Management LLC boosted its position in Applied Materials by 2.1% during the 1st quarter. Horst & Graben Wealth Management LLC now owns 1,304 shares of the manufacturing equipment provider’s stock worth $446,000 after purchasing an additional 27 shares during the period. 80.56% of the stock is owned by hedge funds and other institutional investors.

Applied Materials Stock Performance

Shares of AMAT opened at $626.84 on Wednesday. The stock has a fifty day moving average of $473.54 and a two-hundred day moving average of $378.12. The company has a debt-to-equity ratio of 0.22, a quick ratio of 1.80 and a current ratio of 2.51. The company has a market capitalization of $497.69 billion, a PE ratio of 58.86, a price-to-earnings-growth ratio of 1.74 and a beta of 1.67. Applied Materials has a fifty-two week low of $154.46 and a fifty-two week high of $669.22.

Applied Materials (NASDAQ:AMAT) last issued its quarterly earnings results on Thursday, May 14th. The manufacturing equipment provider reported $2.86 earnings per share for the quarter, beating the consensus estimate of $2.68 by $0.18. The company had revenue of $7.91 billion during the quarter, compared to the consensus estimate of $7.68 billion. Applied Materials had a return on equity of 36.97% and a net margin of 29.31%.Applied Materials’s revenue was up 11.4% on a year-over-year basis. During the same period in the previous year, the firm posted $2.39 EPS. Applied Materials has set its Q3 2026 guidance at 3.160-3.560 EPS. As a group, analysts forecast that Applied Materials will post 12.1 EPS for the current year.

Applied Materials Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Thursday, August 20th will be paid a dividend of $0.53 per share. The ex-dividend date of this dividend is Thursday, August 20th. This represents a $2.12 annualized dividend and a dividend yield of 0.3%. Applied Materials’s payout ratio is currently 19.91%.

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.