Applied Materials (NASDAQ:AMAT) Shares Climb 6.1% – Still a Buy?

Applied Materials, Inc. (NASDAQ:AMAT) shares were up 6.1% on Wednesday. The company traded as high as $404.71 and last traded at $395.08. Approximately 7,280,220 shares were traded during trading, a decline of 8% from the average session volume of 7,924,223 shares. The stock had previously closed at $372.53.

Key Stories Impacting Applied Materials

Here are a few of the latest stories about AMAT:

• Positive Sentiment: Applied Materials reported record fiscal Q4 revenue of $10.41 billion, up 53% year over year, and non-GAAP EPS of $4.16, up 92%; both topped analyst estimates. Fiscal 2026 results
• Positive Sentiment: Management’s outlook points to continued AI-led demand: Q1 revenue guidance of $10.6–$11.6 billion was above consensus, and the company expects Semiconductor Systems revenue to grow more than 40% in calendar 2026. It also sees another record year in 2027. AI demand and 2027 outlook
• Neutral Sentiment: Analysts generally maintained Buy or Overweight ratings after the report, but many lowered their price targets. Several revised targets still imply substantial upside from recent levels, suggesting optimism about the business remains alongside greater caution on valuation. Analyst target changes

Analysts Set New Price Targets

AMAT has been the subject of a number of recent analyst reports. New Street Research cut their price target on shares of Applied Materials from $580.00 to $525.00 and set a “neutral” rating for the company in a research note on Friday, August 14th. Craig Hallum upped their target price on shares of Applied Materials from $530.00 to $585.00 and gave the company a “buy” rating in a report on Friday, August 14th. Bank of America cut their target price on shares of Applied Materials from $650.00 to $520.00 and set a “buy” rating for the company in a research note on Friday. Mizuho reduced their price target on Applied Materials from $590.00 to $510.00 and set an “outperform” rating for the company in a report on Friday. Finally, Needham & Company LLC lowered their price target on Applied Materials from $580.00 to $470.00 and set a “buy” rating on the stock in a research report on Friday. Twenty-nine research analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $589.23.

Applied Materials Price Performance

The company’s 50-day moving average price is $439.22 and its two-hundred day moving average price is $445.83. The company has a debt-to-equity ratio of 0.20, a current ratio of 2.42 and a quick ratio of 1.79. The company has a market capitalization of $294.03 billion, a P/E ratio of 31.94, a price-to-earnings-growth ratio of 0.77 and a beta of 1.67.

Applied Materials (NASDAQ:AMAT) last announced its earnings results on Thursday, November 12th. The manufacturing equipment provider reported $4.16 EPS for the quarter, topping the consensus estimate of $4.06 by $0.10. The business had revenue of $10.41 billion during the quarter, compared to the consensus estimate of $10.30 billion. Applied Materials had a net margin of 30.05% and a return on equity of 38.02%. During the same quarter in the previous year, the firm posted $2.17 EPS. Applied Materials has set its Q1 2027 guidance at 4.150-4.550 EPS. As a group, sell-side analysts expect that Applied Materials, Inc. will post 12.79 EPS for the current year.

Applied Materials Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, December 10th. Shareholders of record on Thursday, November 19th will be given a dividend of $0.53 per share. The ex-dividend date is Thursday, November 19th. This represents a $2.12 annualized dividend and a yield of 0.6%. Applied Materials’s dividend payout ratio (DPR) is presently 18.28%.

Insider Transactions at Applied Materials

In related news, Director Judy Bruner sold 1,000 shares of the firm’s stock in a transaction dated Tuesday, September 8th. The shares were sold at an average price of $465.00, for a total transaction of $465,000.00. Following the transaction, the director directly owned 25,544 shares of the company’s stock, valued at approximately $11,877,960. This trade represents a 3.77% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CAO Adam Sanders sold 725 shares of Applied Materials stock in a transaction dated Friday, October 2nd. The stock was sold at an average price of $544.56, for a total transaction of $394,806.00. Following the completion of the sale, the chief accounting officer owned 3,181 shares of the company’s stock, valued at $1,732,245.36. This trade represents a 18.56% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last 90 days, insiders sold 9,225 shares of company stock valued at $4,454,181. 0.30% of the stock is currently owned by corporate insiders.

Institutional Trading of Applied Materials

A number of institutional investors have recently bought and sold shares of the business. JFS Wealth Advisors LLC raised its holdings 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 grew its holdings in shares of Applied Materials by 2.1% during the second quarter. Innovative Asset Advisors Group LLC now owns 961 shares of the manufacturing equipment provider’s stock valued at $695,000 after buying an additional 20 shares during the last quarter. Stonebridge Financial Group LLC grew its holdings in shares of Applied Materials by 2.1% during the second quarter. Stonebridge Financial Group LLC now owns 1,003 shares of the manufacturing equipment provider’s stock valued at $725,000 after buying an additional 21 shares during the last quarter. N.E.W. Advisory Services LLC increased its position in shares of Applied Materials by 5.9% in 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 period. Finally, IMG Wealth Management Inc. increased its position in shares of Applied Materials by 13.0% in 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 period. Institutional investors 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.