Applied Materials (NASDAQ:AMAT) Receives “Buy” Rating from Needham & Company LLC

Needham & Company LLC reaffirmed their buy rating on shares of Applied Materials (NASDAQ:AMAT) in a research note released on Friday morning,Benzinga reports. They currently have a $740.00 target price on the manufacturing equipment provider’s stock.

Several other research analysts also recently weighed in on AMAT. Argus increased their price target on shares of Applied Materials from $420.00 to $500.00 and gave the stock a “buy” rating in a research report on Tuesday, May 19th. JPMorgan Chase & Co. lifted their price objective on Applied Materials from $400.00 to $515.00 and gave the company an “overweight” rating in a research report on Friday, May 15th. Weiss Ratings reissued a “buy (b-)” rating on shares of Applied Materials in a report on Wednesday, June 24th. Wells Fargo & Company lifted their price target on shares of Applied Materials from $715.00 to $740.00 and gave the company an “overweight” rating in a report on Friday, June 26th. Finally, Bank of America dropped their price target on shares of Applied Materials from $720.00 to $650.00 and set a “buy” rating for the company in a research report on Friday. One analyst has rated the stock with a Strong Buy rating, twenty-seven have assigned a Buy rating and six have assigned a Hold rating to the company’s stock. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $640.17.

Applied Materials Trading Down 5.1%

NASDAQ AMAT opened at $507.18 on Friday. The stock has a market cap of $402.68 billion, a P/E ratio of 43.72, a P/E/G ratio of 1.35 and a beta of 1.61. Applied Materials has a 12 month low of $154.46 and a 12 month high of $739.67. The company has a current ratio of 2.51, a quick ratio of 1.80 and a debt-to-equity ratio of 0.22. The stock’s fifty day moving average price is $564.15 and its 200-day moving average price is $444.89.

Applied Materials (NASDAQ:AMAT) last posted its earnings results on Thursday, August 13th. The manufacturing equipment provider reported $3.50 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.40 by $0.10. Applied Materials had a net margin of 30.05% and a return on equity of 39.58%. The business had revenue of $9.12 billion for the quarter, compared to analysts’ expectations of $8.99 billion. During the same quarter in the prior year, the business earned $2.48 EPS. The business’s revenue for the quarter was up 24.8% compared to the same quarter last year. Applied Materials has set its Q4 2026 guidance at 3.820-4.220 EPS. As a group, equities analysts forecast that Applied Materials will post 12.22 EPS for the current fiscal year.

Applied Materials Announces Dividend

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

Insider Transactions at Applied Materials

In other news, Director Thomas J. Iannotti sold 9,250 shares of the company’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 sale, the director directly owned 40,559 shares in the company, valued at approximately $24,326,071.43. This represents a 18.57% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, SVP Omkaram Nalamasu sold 24,263 shares of the stock in a transaction dated Tuesday, June 16th. The shares were sold at an average price of $593.43, for a total transaction of $14,398,392.09. Following the completion of the transaction, the senior vice president directly owned 146,916 shares of the company’s stock, valued at approximately $87,184,361.88. The trade was a 14.17% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders sold 278,088 shares of company stock worth $169,654,805. 0.30% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Applied Materials

Large investors have recently made changes to their positions in the company. Harborfront Financial Group LLC bought a new stake in shares of Applied Materials during the second quarter worth $27,000. BOK Financial Private Wealth Inc. bought a new position in Applied Materials during the 2nd quarter worth about $41,000. Financial Freedom LLC bought a new stake in shares of Applied Materials in the 1st quarter valued at about $28,000. Elevation Wealth Partners LLC lifted its position in shares of Applied Materials by 34.8% in the 2nd quarter. Elevation Wealth Partners LLC now owns 93 shares of the manufacturing equipment provider’s stock worth $67,000 after purchasing an additional 24 shares during the period. Finally, Cornerstone Financial Management LLC purchased a new stake in shares of Applied Materials in the 4th quarter worth approximately $25,000. 80.56% of the stock is owned by hedge funds and other institutional investors.

Key Applied Materials News

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

• Positive Sentiment: Record quarterly performance: Fiscal Q3 revenue rose 24.8% year over year to $9.12 billion, ahead of the $8.99 billion consensus estimate, while adjusted EPS of $3.50 exceeded expectations. AI infrastructure demand, advanced packaging and memory spending supported growth. Applied Materials Q3 Earnings Beat Estimates, Revenues Rise Y/Y
• Positive Sentiment: Above-consensus outlook: Management projected fiscal Q4 revenue of approximately $9.8 billion to $10.8 billion and EPS of $3.82 to $4.22, both above analyst expectations. The company also pointed to stronger systems growth and unusually long customer visibility into fiscal 2027 and beyond. Applied Materials Forecasts Quarterly Revenue Above Estimates
• Positive Sentiment: Analyst and institutional support: JPMorgan, RBC, TD Cowen, B. Riley, Needham and other firms maintained positive ratings or raised price targets. Soros Capital also reportedly added AMAT among several semiconductor positions, reinforcing the longer-term AI and chip-cycle investment case. Soros Capital Loads Up on Semiconductor Stocks
• Neutral Sentiment: Options imply a possible rebound: Derivatives-market data indicates traders expect the pullback could be temporary, although elevated volatility reflects uncertainty over the stock’s near-term direction. Applied Materials Options Data
• Negative Sentiment: Expectations were exceptionally high: Despite the earnings beat and upbeat guidance, investors wanted faster growth and clearer evidence that AMAT is outpacing rivals in semiconductor manufacturing equipment. Concerns about competition, margins and the pace of systems growth overshadowed the headline results. Applied Materials Slips as Investors Seek Faster Growth
• Negative Sentiment: Broader market pressure added to selling: Weaker July retail-sales data, profit-taking after record highs and a semiconductor-sector selloff weighed on AMAT and other AI-related stocks.

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.