Applied Materials (NASDAQ:AMAT) Shares Gap Up – Here’s Why

Applied Materials, Inc. (NASDAQ:AMAT) shares gapped up prior to trading on Thursday . The stock had previously closed at $301.89, but opened at $328.08. Applied Materials shares last traded at $324.3680, with a volume of 1,927,050 shares trading hands.

Analyst Upgrades and Downgrades

Several equities research analysts recently commented on the stock. Susquehanna upgraded shares of Applied Materials from a “neutral” rating to a “positive” rating and lifted their price target for the stock from $180.00 to $400.00 in a research note on Sunday. Jefferies Financial Group lifted their target price on Applied Materials from $260.00 to $360.00 and gave the stock a “buy” rating in a research report on Monday, December 15th. Sanford C. Bernstein reissued a “market perform” rating and issued a $325.00 target price on shares of Applied Materials in a research report on Monday. TD Cowen increased their price objective on Applied Materials from $260.00 to $315.00 and gave the company a “buy” rating in a report on Thursday, December 4th. Finally, UBS Group raised Applied Materials from a “neutral” rating to a “buy” rating and raised their price target for the stock from $250.00 to $285.00 in a report on Tuesday, November 25th. Twenty-three investment analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the stock. Based on data from MarketBeat.com, Applied Materials presently has an average rating of “Moderate Buy” and a consensus price target of $278.86.

Applied Materials Stock Performance

The stock has a 50 day moving average of $257.75 and a two-hundred day moving average of $216.05. The stock has a market capitalization of $258.43 billion, a PE ratio of 37.52, a P/E/G ratio of 3.15 and a beta of 1.67. The company has a debt-to-equity ratio of 0.32, a current ratio of 2.61 and a quick ratio of 1.87.

Applied Materials (NASDAQ:AMAT) last released its earnings results on Thursday, November 13th. The manufacturing equipment provider reported $2.17 EPS for the quarter, beating analysts’ consensus estimates of $2.11 by $0.06. Applied Materials had a return on equity of 39.26% and a net margin of 24.67%.The company had revenue of $6.80 billion during the quarter, compared to the consensus estimate of $6.68 billion. During the same quarter last year, the company earned $2.32 earnings per share. Applied Materials’s quarterly revenue was down 3.5% compared to the same quarter last year. Applied Materials has set its Q1 2026 guidance at 1.980-2.380 EPS. Research analysts expect that Applied Materials, Inc. will post 9.38 EPS for the current fiscal year.

Applied Materials Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, March 12th. Investors of record on Thursday, February 19th will be issued a dividend of $0.46 per share. The ex-dividend date of this dividend is Thursday, February 19th. This represents a $1.84 dividend on an annualized basis and a yield of 0.6%. Applied Materials’s payout ratio is currently 21.20%.

Insider Transactions at Applied Materials

In other news, SVP Teri A. Little sold 4,000 shares of Applied Materials stock in a transaction that occurred on Tuesday, November 25th. The shares were sold at an average price of $238.24, for a total transaction of $952,960.00. Following the completion of the sale, the senior vice president directly owned 84,351 shares in the company, valued at approximately $20,095,782.24. This trade represents a 4.53% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CAO Adam Sanders sold 609 shares of the business’s stock in a transaction that occurred 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 sale, the chief accounting officer directly owned 4,413 shares in the company, valued at $1,127,653.89. This trade represents a 12.13% decrease in their position. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 8,609 shares of company stock valued at $2,044,898. 0.24% of the stock is currently owned by corporate insiders.

Institutional Trading of Applied Materials

Large investors have recently bought and sold shares of the company. Marquette Asset Management LLC raised its holdings 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 purchasing an additional 75 shares during the period. Redmont Wealth Advisors LLC acquired a new stake in Applied Materials during the 3rd quarter worth approximately $26,000. Maseco LLP purchased a new position in Applied Materials in the second quarter valued at approximately $30,000. Financial Gravity Companies Inc. acquired a new position in Applied Materials during the second quarter valued at approximately $31,000. Finally, Manning & Napier Advisors LLC purchased a new stake in Applied Materials during the third quarter worth approximately $31,000. Institutional investors and hedge funds own 80.56% of the company’s stock.

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.