Applied Materials (NASDAQ:AMAT) Shares Up 4.2% – Here’s What Happened

Applied Materials, Inc. (NASDAQ:AMAT)’s stock price shot up 4.2% on Friday. The company traded as high as $348.71 and last traded at $332.72. 9,444,192 shares traded hands during trading, an increase of 19% from the average daily volume of 7,907,192 shares. The stock had previously closed at $319.25.

More Applied Materials News

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

• Positive Sentiment: A rally in chip-equipment shares is lifting AMAT ahead of its fiscal fourth-quarter results, scheduled for November 12. The sector move followed Lam Research’s announcement of a $25 billion share buyback. Article: Applied Materials Stocks Rise as Chip Equipment Rallies Ahead of Earnings
• Positive Sentiment: AI-related equipment demand and growth in advanced packaging are cited as longer-term supports for Applied Materials, despite the recent pullback in chip stocks. Article: AMAT Shares Plunge 30% in a Month: Should You Buy, Sell or Hold?
• Neutral Sentiment: The upcoming results are a key near-term catalyst: investors will assess whether demand and equipment-spending expectations hold up in a more cautious investment environment. Article: Applied Materials Stocks Fall Before a Revenue Test
• Negative Sentiment: The rebound follows a sharp chip-stock sell-off, with investors worried that data-center spending could slow; weak Qualcomm guidance added to sector concerns. AMAT also recently faced pressure after an analyst downgrade. Article: Chip Stock Rout Deepens Article: Applied Materials Stock Falls After Analyst Downgrade

Analysts Set New Price Targets

A number of analysts have recently commented on AMAT shares. Wall Street Zen raised shares of Applied Materials from a “hold” rating to a “buy” rating in a research note on Saturday, September 26th. HSBC lowered their price objective on Applied Materials from $683.00 to $641.00 and set a “buy” rating on the stock in a report on Friday, August 14th. Craig Hallum boosted their price objective on Applied Materials from $530.00 to $585.00 and gave the stock a “buy” rating in a research note on Friday, August 14th. Citigroup reiterated a “buy” rating and set a $710.00 price objective (up from $550.00) on shares of Applied Materials in a research note on Monday, August 3rd. Finally, Needham & Company LLC reduced their target price on Applied Materials from $740.00 to $580.00 and set a “buy” rating for the company in a report on Friday, October 16th. Thirty equities research analysts have rated the stock with a Buy rating and nine have given a Hold rating to the stock. Based on data from MarketBeat.com, Applied Materials currently has an average rating of “Moderate Buy” and a consensus target price of $632.01.

Applied Materials Stock Performance

The company has a quick ratio of 1.79, a current ratio of 2.42 and a debt-to-equity ratio of 0.20. The stock has a 50-day moving average of $447.84 and a 200 day moving average of $444.59. The stock has a market cap of $264.04 billion, a PE ratio of 28.68, a P/E/G ratio of 0.72 and a beta of 1.67.

Applied Materials (NASDAQ:AMAT) last announced its quarterly earnings results on Thursday, August 13th. The manufacturing equipment provider reported $3.50 earnings per share for the quarter, beating the consensus estimate of $3.40 by $0.10. The firm had revenue of $9.12 billion for 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 company’s revenue was up 24.8% compared to the same quarter last year. During the same quarter in the previous year, the company posted $2.48 EPS. Applied Materials has set its Q4 2026 guidance at 3.820-4.220 EPS. Equities analysts predict that Applied Materials, Inc. will post 12.79 EPS for the current fiscal year.

Applied Materials Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, December 10th. Investors of record on Thursday, November 19th will be issued a $0.53 dividend. This represents a $2.12 annualized dividend and a yield of 0.6%. The ex-dividend date is Thursday, November 19th. Applied Materials’s payout ratio is 18.28%.

Insider Activity

In related news, CAO Adam Sanders sold 725 shares of the business’s stock in a transaction on Friday, October 2nd. The stock was sold at an average price of $544.56, for a total value of $394,806.00. Following the sale, the chief accounting officer owned 3,181 shares in the company, valued at approximately $1,732,245.36. The trade was a 18.56% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Brice Hill sold 7,500 shares of the firm’s stock in a transaction dated Tuesday, August 25th. The shares were sold at an average price of $479.25, for a total value of $3,594,375.00. Following the transaction, the chief financial officer owned 128,613 shares of the company’s stock, valued at $61,637,780.25. This trade represents a 5.51% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last three months, insiders have sold 9,225 shares of company stock valued at $4,454,181. Company insiders own 0.30% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the business. JFS Wealth Advisors LLC lifted its position in shares of Applied Materials by 4.3% in the second quarter. JFS Wealth Advisors LLC now owns 409 shares of the manufacturing equipment provider’s stock worth $296,000 after buying an additional 17 shares during the last quarter. Innovative Asset Advisors Group LLC boosted its stake in shares of Applied Materials by 2.1% during the 2nd quarter. Innovative Asset Advisors Group LLC now owns 961 shares of the manufacturing equipment provider’s stock worth $695,000 after acquiring an additional 20 shares in the last quarter. Stonebridge Financial Group LLC increased its holdings in shares of Applied Materials by 2.1% during the 2nd quarter. Stonebridge Financial Group LLC now owns 1,003 shares of the manufacturing equipment provider’s stock valued at $725,000 after acquiring an additional 21 shares during the last quarter. N.E.W. Advisory Services LLC increased its holdings in shares of Applied Materials by 5.9% during the 2nd quarter. N.E.W. Advisory Services LLC now owns 377 shares of the manufacturing equipment provider’s stock valued at $273,000 after acquiring an additional 21 shares during the last quarter. Finally, IMG Wealth Management Inc. increased its holdings in shares of Applied Materials by 13.0% during the 2nd quarter. IMG Wealth Management Inc. now owns 183 shares of the manufacturing equipment provider’s stock valued at $132,000 after acquiring an additional 21 shares during the last quarter. Institutional investors and hedge funds own 80.56% of the company’s stock.

About Applied Materials

Applied Materials, Inc develops and supplies equipment, software and services used to manufacture semiconductors and advanced displays. Its technologies help customers build and process materials at the microscopic scale required for chips and other electronic products.

The company’s offerings include systems for depositing, removing and modifying materials, as well as inspection, measurement and process-control tools. It also provides equipment and services for advanced semiconductor packaging and supports customers with maintenance, upgrades and manufacturing software.

Founded in 1967 and headquartered in Santa Clara, California, Applied Materials serves semiconductor and display manufacturers around the world.