Applied Materials (NASDAQ:AMAT) Reaches New 1-Year High – Still a Buy?

Applied Materials, Inc. (NASDAQ:AMAT) hit a new 52-week high on Tuesday . The stock traded as high as $455.83 and last traded at $454.14, with a volume of 2197375 shares traded. The stock had previously closed at $432.16.

Key Stories Impacting Applied Materials

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

• Positive Sentiment: Cantor Fitzgerald reaffirmed its Overweight rating on Applied Materials and raised its price target to $575, signaling confidence that the shares still have meaningful upside from current levels. Applied Materials analyst rating update
• Positive Sentiment: Investors are still digesting Applied Materials’ recently reported beat-and-raise quarter, including better-than-expected revenue and EPS plus higher Q3 guidance, which supports the view that demand for semiconductor equipment remains strong. Applied Materials beats estimates and raises outlook
• Positive Sentiment: Applied Materials’ partnerships with Broadcom and SCREEN Semiconductor Solutions on advanced chip packaging and wafer cleaning at the EPIC Center reinforce its role in AI infrastructure and could drive longer-term growth. Applied Materials partners with SCREEN to bring advanced wafer cleaning technologies to EPIC Center
• Neutral Sentiment: A transcript from Applied Materials’ Bernstein conference appearance may provide additional detail on management’s outlook, but it is more of a follow-up source than a fresh market-moving catalyst. Applied Materials presents at Bernstein conference transcript
• Neutral Sentiment: Insider selling by CAO Adam Sanders was relatively small and does not appear material enough on its own to change the investment story. Applied Materials CAO sells shares
• Negative Sentiment: Some market commentary noted that momentum stocks can cool after extended runs, which may add caution for a name like AMAT after its sharp move higher. Momentum stocks look unstoppable, look again

Wall Street Analyst Weigh In

Several equities research analysts have weighed in on the company. KGI Securities raised Applied Materials to an “outperform” rating and set a $425.00 price objective on the stock in a research note on Friday, February 13th. KeyCorp boosted their price objective on Applied Materials from $450.00 to $550.00 and gave the stock an “overweight” rating in a research note on Friday, May 15th. Citigroup boosted their price objective on Applied Materials from $420.00 to $520.00 and gave the stock a “buy” rating in a research note on Tuesday, May 12th. Sanford C. Bernstein reaffirmed an “outperform” rating and set a $525.00 price target on shares of Applied Materials in a research note on Friday, May 15th. Finally, DZ Bank raised shares of Applied Materials to a “hold” rating in a research note on Monday, February 16th. Twenty-seven analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average target price of $470.13.

Applied Materials Stock Performance

The company has a current ratio of 2.51, a quick ratio of 1.80 and a debt-to-equity ratio of 0.22. The business’s 50 day moving average is $393.29 and its 200 day moving average is $331.12. The stock has a market capitalization of $357.03 billion, a PE ratio of 42.22, a PEG ratio of 1.27 and a beta of 1.66.

Applied Materials (NASDAQ:AMAT) last announced its quarterly earnings data on Thursday, May 14th. The manufacturing equipment provider reported $2.86 earnings per share for the quarter, beating analysts’ consensus estimates of $2.68 by $0.18. Applied Materials had a net margin of 29.31% and a return on equity of 36.97%. The company had revenue of $7.91 billion during the quarter, compared to analyst estimates of $7.68 billion. During the same quarter last year, the business posted $2.39 EPS. The firm’s revenue for the quarter was up 11.4% on a year-over-year basis. Applied Materials has set its Q3 2026 guidance at 3.160-3.560 EPS. On average, equities research analysts predict that Applied Materials, Inc. will post 12.02 earnings per share for the current fiscal year.

Applied Materials Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, June 11th. Stockholders of record on Thursday, May 21st will be paid a dividend of $0.53 per share. This is a boost from Applied Materials’s previous quarterly dividend of $0.46. This represents a $2.12 dividend on an annualized basis and a dividend yield of 0.5%. The ex-dividend date is Thursday, May 21st. Applied Materials’s payout ratio is 19.91%.

Insider Buying and Selling at Applied Materials

In related news, CAO Adam Sanders sold 268 shares of the company’s stock in a transaction on Friday, May 22nd. The stock was sold at an average price of $434.22, for a total transaction of $116,370.96. Following the completion of the sale, the chief accounting officer directly owned 4,280 shares in the company, valued at $1,858,461.60. This represents a 5.89% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this link. Also, Director Judy Bruner sold 1,128 shares of the firm’s stock in a transaction dated Tuesday, May 26th. The shares were sold at an average price of $450.00, for a total value of $507,600.00. Following the sale, the director directly owned 26,544 shares in the company, valued at approximately $11,944,800. The trade was a 4.08% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 0.30% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of the company. Alpine Woods Capital Investors LLC purchased a new position in shares of Applied Materials in the 1st quarter worth approximately $233,000. Allen Capital Group LLC grew its position in shares of Applied Materials by 22.2% in the 1st quarter. Allen Capital Group LLC now owns 1,850 shares of the manufacturing equipment provider’s stock worth $632,000 after buying an additional 336 shares during the last quarter. Westshore Wealth LLC grew its position in shares of Applied Materials by 10.9% in the 1st quarter. Westshore Wealth LLC now owns 1,015 shares of the manufacturing equipment provider’s stock worth $347,000 after buying an additional 100 shares during the last quarter. Summit Financial Wealth Advisors LLC purchased a new position in shares of Applied Materials in the 1st quarter worth approximately $211,000. Finally, Axiom Investment Management LLC purchased a new position in shares of Applied Materials in the 1st quarter worth approximately $210,000. Hedge funds and other institutional investors own 80.56% of the company’s stock.

About Applied Materials

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.