Zacks Research Issues Pessimistic Estimate for AMAT Earnings

Applied Materials, Inc. (NASDAQ:AMAT) – Stock analysts at Zacks Research reduced their FY2026 earnings estimates for Applied Materials in a research note issued on Thursday, March 6th. Zacks Research analyst R. Department now expects that the manufacturing equipment provider will post earnings per share of $9.33 for the year, down from their previous estimate of $10.16. The consensus estimate for Applied Materials’ current full-year earnings is $9.38 per share.

AMAT has been the subject of a number of other research reports. Needham & Company LLC dropped their price target on Applied Materials from $200.00 to $195.00 and set a “buy” rating for the company in a research note on Friday, February 14th. Citigroup raised their target price on shares of Applied Materials from $194.00 to $202.00 and gave the stock a “buy” rating in a research report on Tuesday, February 18th. The Goldman Sachs Group decreased their price target on shares of Applied Materials from $230.00 to $202.00 and set a “buy” rating for the company in a research note on Friday, January 10th. Evercore ISI cut their price objective on Applied Materials from $260.00 to $250.00 and set an “outperform” rating on the stock in a research report on Friday, November 15th. Finally, Morgan Stanley reissued an “underweight” rating and issued a $164.00 target price (down previously from $179.00) on shares of Applied Materials in a research report on Thursday, December 5th. One equities research analyst has rated the stock with a sell rating, seven have given a hold rating and fifteen have given a buy rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $215.38.

Applied Materials Stock Performance

Applied Materials stock opened at $146.99 on Monday. Applied Materials has a 1-year low of $145.37 and a 1-year high of $255.89. The firm has a market cap of $119.42 billion, a P/E ratio of 19.21, a P/E/G ratio of 1.81 and a beta of 1.62. The company has a current ratio of 2.67, a quick ratio of 1.96 and a debt-to-equity ratio of 0.29. The firm has a 50-day moving average of $173.37 and a 200-day moving average of $180.06.

Applied Materials (NASDAQ:AMAT) last announced its quarterly earnings results on Thursday, February 13th. The manufacturing equipment provider reported $2.38 earnings per share for the quarter, beating the consensus estimate of $2.28 by $0.10. Applied Materials had a net margin of 22.95% and a return on equity of 39.50%.

Applied Materials Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, June 12th. Shareholders of record on Thursday, May 22nd will be paid a dividend of $0.46 per share. This is a positive change from Applied Materials’s previous quarterly dividend of $0.40. This represents a $1.84 dividend on an annualized basis and a yield of 1.25%. The ex-dividend date is Thursday, May 22nd. Applied Materials’s dividend payout ratio (DPR) is currently 20.92%.

Applied Materials declared that its board has authorized a stock repurchase plan on Monday, March 10th that permits the company to buyback $10.00 billion in outstanding shares. This buyback authorization permits the manufacturing equipment provider to purchase up to 8.2% of its shares through open market purchases. Shares buyback plans are generally a sign that the company’s board of directors believes its shares are undervalued.

Insider Transactions at Applied Materials

In other Applied Materials news, CAO Adam Sanders sold 271 shares of Applied Materials stock in a transaction on Monday, February 24th. The stock was sold at an average price of $172.72, for a total value of $46,807.12. Following the completion of the sale, the chief accounting officer now owns 6,479 shares of the company’s stock, valued at approximately $1,119,052.88. This trade represents a 4.01 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Insiders own 0.24% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Norges Bank purchased a new position in Applied Materials in the 4th quarter worth about $1,588,422,000. EdgePoint Investment Group Inc. grew its stake in shares of Applied Materials by 341.0% in the third quarter. EdgePoint Investment Group Inc. now owns 2,857,155 shares of the manufacturing equipment provider’s stock worth $577,288,000 after acquiring an additional 2,209,218 shares during the period. Janus Henderson Group PLC raised its holdings in shares of Applied Materials by 67.8% during the third quarter. Janus Henderson Group PLC now owns 4,663,133 shares of the manufacturing equipment provider’s stock valued at $942,187,000 after purchasing an additional 1,884,153 shares during the last quarter. Northern Trust Corp lifted its position in Applied Materials by 18.6% during the fourth quarter. Northern Trust Corp now owns 10,230,464 shares of the manufacturing equipment provider’s stock valued at $1,663,780,000 after purchasing an additional 1,602,645 shares during the period. Finally, Kovitz Investment Group Partners LLC lifted its position in Applied Materials by 301.6% during the fourth quarter. Kovitz Investment Group Partners LLC now owns 1,959,997 shares of the manufacturing equipment provider’s stock valued at $318,754,000 after purchasing an additional 1,471,953 shares during the period. 80.56% of the stock is owned by institutional investors.

About Applied Materials

Applied Materials, Inc engages in the provision of manufacturing equipment, services, and software to the semiconductor, display, and related industries. The company operates through three segments: Semiconductor Systems, Applied Global Services, and Display and Adjacent Markets. The Semiconductor Systems segment develops, manufactures, and sells various manufacturing equipment that is used to fabricate semiconductor chips or integrated circuits.