Applied Materials (NASDAQ:AMAT) Stock Gets Downgrade from Zacks Research

Applied Materials (NASDAQ:AMAT) was downgraded by Zacks Research from a “strong-buy” rating to a “hold” rating in a report issued on Thursday, Zacks reports.

Other research analysts have also recently issued reports about the stock. TD Cowen reissued a “buy” rating and set a $700.00 price target on shares of Applied Materials in a report on Friday, August 14th. Jefferies Financial Group lifted their price objective on Applied Materials from $510.00 to $770.00 and gave the company a “buy” rating in a report on Friday, June 26th. Weiss Ratings lowered Applied Materials from a “buy (b)” rating to a “buy (b-)” rating in a report on Wednesday, September 9th. The Goldman Sachs Group boosted their target price on Applied Materials from $645.00 to $670.00 and gave the stock a “buy” rating in a research report on Friday, August 14th. Finally, Deutsche Bank Aktiengesellschaft reissued a “buy” rating and set a $605.00 target price (down from $680.00) on shares of Applied Materials in a research note on Friday, August 14th. Thirty analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $632.70.

Applied Materials Stock Performance

Applied Materials stock traded down $20.72 during trading hours on Thursday, reaching $409.29. 8,533,128 shares of the stock were exchanged, compared to its average volume of 6,720,239. The stock has a market cap of $324.81 billion, a P/E ratio of 35.28, a P/E/G ratio of 1.20 and a beta of 1.60. The company has a debt-to-equity ratio of 0.20, a quick ratio of 1.79 and a current ratio of 2.42. Applied Materials has a 52-week low of $203.40 and a 52-week high of $739.67. The firm’s 50 day moving average is $480.52 and its 200 day moving average is $485.08.

Applied Materials (NASDAQ:AMAT) last released its earnings results on Thursday, August 13th. The manufacturing equipment provider reported $3.50 EPS for the quarter, topping the consensus estimate of $3.40 by $0.10. The company had revenue of $9.12 billion during the quarter, compared to analysts’ expectations of $8.99 billion. Applied Materials had a net margin of 30.05% and a return on equity of 38.02%. The business’s revenue was up 24.8% on a year-over-year basis. During the same quarter last year, the business earned $2.48 EPS. Applied Materials has set its Q4 2026 guidance at 3.820-4.220 EPS. Analysts predict that Applied Materials will post 12.79 EPS for the current fiscal year.

Insider Buying and Selling at Applied Materials

In other news, Director Judy Bruner sold 1,000 shares of the business’s stock in a transaction that occurred on Tuesday, September 8th. The stock was sold at an average price of $465.00, for a total transaction of $465,000.00. Following the sale, the director owned 25,544 shares of the company’s stock, valued at $11,877,960. The trade was a 3.77% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CFO Brice Hill sold 7,500 shares of the company’s stock in a transaction that occurred on Tuesday, August 25th. The stock was sold at an average price of $479.25, for a total value of $3,594,375.00. Following the completion of the sale, the chief financial officer owned 128,613 shares in the company, valued at approximately $61,637,780.25. This represents a 5.51% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 9,225 shares of company stock valued at $4,454,181. Corporate insiders own 0.30% of the company’s stock.

Hedge Funds Weigh In On Applied Materials

Several hedge funds and other institutional investors have recently bought and sold shares of the company. USA Financial Formulas acquired a new position in shares of Applied Materials during the 3rd quarter worth $1,249,000. Processus Wealth & Capital Management LLC grew its stake in Applied Materials by 6.8% in the 3rd quarter. Processus Wealth & Capital Management LLC now owns 18,199 shares of the manufacturing equipment provider’s stock valued at $9,307,000 after acquiring an additional 1,155 shares during the last quarter. Kintegral Advisory LLC grew its stake in Applied Materials by 0.6% in the 3rd quarter. Kintegral Advisory LLC now owns 29,521 shares of the manufacturing equipment provider’s stock valued at $15,096,000 after acquiring an additional 166 shares during the last quarter. Hengehold Capital Management LLC increased its holdings in Applied Materials by 33.7% during the 3rd quarter. Hengehold Capital Management LLC now owns 516 shares of the manufacturing equipment provider’s stock valued at $264,000 after acquiring an additional 130 shares in the last quarter. Finally, St. Louis Financial Planners Asset Management LLC purchased a new position in Applied Materials during the 3rd quarter valued at about $256,000. 80.56% of the stock is owned by institutional investors and hedge funds.

Key Stories Impacting Applied Materials

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

• Positive Sentiment: Applied Materials opened its $5 billion EPIC Center in Sunnyvale, California, described as the world’s largest semiconductor equipment and process-technology research facility. The investment should strengthen the company’s ability to develop equipment for advanced chips and capitalize on long-term AI and semiconductor capacity growth. Applied Materials opens $5B semiconductor innovation center
• Positive Sentiment: Needham lowered its Applied Materials price target from $740 to $580 but maintained a “buy” rating, indicating that the recent pullback has created what the firm considers meaningful upside. Other recent commentary also highlights AMAT’s broad equipment portfolio and strategic position in semiconductor manufacturing.
• Positive Sentiment: Investors are evaluating whether the current decline could offer an attractive entry point. Historical rebounds after sharp selloffs, continued semiconductor capacity expansion, and expectations for a sales recovery support the longer-term bullish case. Has Buying Applied Materials Stock’s Dips Paid Off?
• Neutral Sentiment: Analyst commentary is mixed: some reports identify Applied Materials as a growth-at-a-reasonable-price opportunity, while others present a more cautious view of technology stocks. ETF activity has also been inconsistent, with 31 funds adding AMAT on October 13 but ETFs collectively selling shares on October 14.
• Negative Sentiment: Chip-equipment stocks are recording unusually long losing streaks as investors question whether AI-related spending can continue at its current pace. Those sector-wide concerns are currently outweighing the potential benefits of the new research center and are contributing to AMAT’s decline. Chip Equipment Stocks Notch Historic Losing Streaks

Applied Materials Company Profile

Applied Materials, Inc is a global supplier of equipment, services and software used to manufacture semiconductor chips, flat-panel displays and other advanced electronic products. Its technologies help customers build and enhance materials at the nanoscale, supporting processes such as deposition, etching, inspection, metrology and packaging.

The company’s offerings include semiconductor manufacturing systems, process-control and inspection equipment, and services designed to improve the performance, productivity and longevity of production equipment.