Applied Materials (NASDAQ:AMAT) Stock Jumps 11.4% – Here’s Why

Applied Materials, Inc. (NASDAQ:AMAT) shot up 11.4% on Monday. The company traded as high as $375.53 and last traded at $370.55. Approximately 10,937,969 shares were traded during trading, an increase of 38% from the average daily volume of 7,934,396 shares. The stock had previously closed at $332.71.

Key Headlines Impacting Applied Materials

Investors following AMAT have been watching these headlines:

• Positive Sentiment: A broad chip-equipment rebound helped lift AMAT ahead of earnings, with investors looking for signs that AI-related investment and demand for manufacturing equipment remain strong. Chip stocks rebound
• Positive Sentiment: ETF flows offered a supportive signal: funds bought $317.1 million of Applied Materials on Monday, although flows can change quickly. ETF purchases
• Negative Sentiment: Valuation concerns remain: one estimate of fair value was trimmed amid caution about margins and discount rates, while a technical analysis warned that a “death cross” may be forming after a steep decline. These risks could weigh on shares if results or guidance disappoint. Fair-value estimate Technical outlook

Analysts Set New Price Targets

AMAT has been the topic of several research reports. The Goldman Sachs Group raised their price target on Applied Materials from $645.00 to $670.00 and gave the company a “buy” rating in a research note on Friday, August 14th. New Street Research dropped their target price on shares of Applied Materials from $580.00 to $525.00 and set a “neutral” rating on the stock in a report on Friday, August 14th. Wall Street Zen upgraded shares of Applied Materials from a “hold” rating to a “buy” rating in a research note on Saturday, September 26th. JPMorgan Chase & Co. lifted their price objective on shares of Applied Materials from $515.00 to $660.00 and gave the company an “overweight” rating in a report on Friday, August 14th. Finally, Royal Bank Of Canada restated an “outperform” rating and set a $600.00 target price on shares of Applied Materials in a report on Wednesday, October 14th. Thirty research analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $625.76.

Applied Materials Stock Performance

The firm’s 50 day moving average is $441.30 and its 200 day moving average is $445.16. The company has a debt-to-equity ratio of 0.20, a quick ratio of 1.79 and a current ratio of 2.42. The stock has a market cap of $313.54 billion, a P/E ratio of 34.06, a price-to-earnings-growth ratio of 0.72 and a beta of 1.67.

Applied Materials (NASDAQ:AMAT) last announced its 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. Applied Materials had a net margin of 30.05% and a return on equity of 38.02%. The company had revenue of $9.12 billion during the quarter, compared to the consensus estimate of $8.99 billion. During the same period last year, the firm earned $2.48 earnings per share. Applied Materials’s revenue 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. Analysts anticipate that Applied Materials, Inc. will post 12.79 EPS for the current year.

Applied Materials Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, December 10th. Shareholders of record on Thursday, November 19th will be issued a $0.53 dividend. This represents a $2.12 annualized dividend and a yield of 0.5%. The ex-dividend date of this dividend is Thursday, November 19th. Applied Materials’s dividend payout ratio (DPR) is currently 18.28%.

Insider Transactions at Applied Materials

In other news, CAO Adam Sanders sold 725 shares of the business’s 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 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 ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Judy Bruner sold 1,000 shares of the company’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 owned 25,544 shares in the company, valued at approximately $11,877,960. This trade represents a 3.77% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders have sold 9,225 shares of company stock worth $4,454,181. Insiders own 0.30% of the company’s stock.

Hedge Funds Weigh In On Applied Materials

Several hedge funds have recently made changes to their positions in AMAT. Mayflower Financial Advisors LLC lifted its holdings in shares of Applied Materials by 11.3% in the 3rd quarter. Mayflower Financial Advisors LLC now owns 1,498 shares of the manufacturing equipment provider’s stock valued at $766,000 after buying an additional 152 shares during the period. Advisors Asset Management Inc. acquired a new position in shares of Applied Materials in the 3rd quarter valued at $10,550,000. Edmond DE Rothschild Holding S.A. lifted its stake in shares of Applied Materials by 31.6% in the 3rd quarter. Edmond DE Rothschild Holding S.A. now owns 41,887 shares of the manufacturing equipment provider’s stock valued at $21,420,000 after purchasing an additional 10,069 shares during the period. Private Wealth Asset Management LLC boosted its holdings in Applied Materials by 226.7% during the third quarter. Private Wealth Asset Management LLC now owns 4,734 shares of the manufacturing equipment provider’s stock worth $2,421,000 after buying an additional 3,285 shares in the last quarter. Finally, Alteri Wealth LLC boosted its holdings in Applied Materials by 11.9% during the third quarter. Alteri Wealth LLC now owns 3,707 shares of the manufacturing equipment provider’s stock worth $1,896,000 after buying an additional 395 shares in the last quarter. 80.56% of the stock is owned by institutional investors and hedge funds.

Applied Materials Company Profile

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.