Applied Materials (NASDAQ:AMAT) Trading 1.3% Higher After Dividend Announcement

Applied Materials, Inc. (NASDAQ:AMAT) shot up 1.3% during trading on Friday after the company announced a dividend. The stock traded as high as $349.25 and last traded at $341.53. 5,182,045 shares changed hands during trading, a decline of 35% from the average session volume of 7,961,021 shares. The stock had previously closed at $337.27.

The newly announced dividend which will be paid on Thursday, June 11th. Investors of record on Thursday, May 21st will be paid a $0.53 dividend. This represents a $2.12 dividend on an annualized basis and a yield of 0.6%. This is a positive change from Applied Materials’s previous quarterly dividend of $0.46. The ex-dividend date of this dividend is Thursday, May 21st. Applied Materials’s payout ratio is presently 18.83%.

Analyst Ratings Changes

A number of analysts have weighed in on AMAT shares. Cantor Fitzgerald restated an “overweight” rating and set a $470.00 target price on shares of Applied Materials in a report on Friday, February 13th. B. Riley Financial reiterated a “buy” rating and issued a $450.00 price target (up from $400.00) on shares of Applied Materials in a report on Friday, February 13th. DZ Bank upgraded Applied Materials to a “hold” rating in a research note on Monday, February 16th. Susquehanna raised Applied Materials from a “neutral” rating to a “positive” rating and raised their price objective for the company from $180.00 to $400.00 in a research report on Sunday, January 11th. Finally, Stifel Nicolaus raised their price objective on Applied Materials from $340.00 to $450.00 and gave the company a “buy” rating in a research report on Friday, February 13th. One research analyst has rated the stock with a Strong Buy rating, twenty-six have assigned a Buy rating and seven have given a Hold rating to the company’s stock. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $363.46.

Applied Materials Stock Up 1.3%

The company’s fifty day simple moving average is $334.48 and its 200-day simple moving average is $261.80. The firm has a market capitalization of $271.04 billion, a PE ratio of 34.96, a price-to-earnings-growth ratio of 1.52 and a beta of 1.65. The company has a debt-to-equity ratio of 0.30, a current ratio of 2.71 and a quick ratio of 1.94.

Applied Materials (NASDAQ:AMAT) last issued its quarterly earnings data on Thursday, February 12th. The manufacturing equipment provider reported $2.38 EPS for the quarter, beating the consensus estimate of $2.21 by $0.17. Applied Materials had a return on equity of 37.52% and a net margin of 27.78%.The firm had revenue of $7.01 billion during the quarter, compared to analyst estimates of $6.88 billion. During the same quarter in the prior year, the business posted $2.38 EPS. The business’s revenue for the quarter was down 2.1% compared to the same quarter last year. Applied Materials has set its Q2 2026 guidance at 2.440-2.840 EPS. On average, analysts forecast that Applied Materials, Inc. will post 9.38 EPS for the current year.

Trending Headlines about Applied Materials

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

• Positive Sentiment: Board-approved 15% increase to the quarterly cash dividend (from $0.46 to $0.53), marking nine consecutive years of raises — signals strong free-cash-flow generation and makes the stock more attractive to income and dividend-growth investors. Article Title
• Positive Sentiment: Planned addition to the S&P 100 (effective March 23) — likely to create incremental buying from index-tracking funds ahead of the effective date. Article Title
• Positive Sentiment: New/strengthened customer R&D partnerships focused on AI memory (long-term R&D tie-up with SK hynix and collaboration with Micron on memory) — supports durable equipment demand for next‑gen DRAM/HBM and AI accelerators. Article Title
• Positive Sentiment: Broader market positioning toward semiconductors/AI: hedge funds and money managers are overweighting semiconductor-capital-equipment names (including AMAT) as AI capex remains a dominant 2026 trade theme. That institutional buying is supporting AMAT multiple and flows. Article Title
• Positive Sentiment: Recent analyst attention and elevated price targets (median ~$415; multiple firms on “Buy/Overweight”) — helps underpin sentiment and provides buying interest on pullbacks. Article Title
• Neutral Sentiment: Elevated retail and search interest reported by Zacks — signals attention but not directionally predictive by itself. Article Title
• Neutral Sentiment: Takeover/industry M&A chatter (e.g., interest around BE Semiconductor Industries involving Lam and Applied) can boost sentiment but is speculative. Article Title
• Negative Sentiment: Macro risk: recent oil/ geopolitical-driven moves hit some chip names (Nvidia, Broadcom, Micron) — a spike in risk or higher energy prices can pressure tech cyclicals, including AMAT. Article Title
• Negative Sentiment: Notable insider sell activity and some institutional reallocations reported (large holders trimming in recent quarters) — could weigh on sentiment if selling persists. Article Title

Insider Transactions at Applied Materials

In related news, CAO Adam Sanders sold 534 shares of Applied Materials stock in a transaction that occurred on Tuesday, February 24th. The shares were sold at an average price of $379.16, for a total value of $202,471.44. Following the completion of the sale, the chief accounting officer directly owned 4,625 shares in the company, valued at $1,753,615. This trade represents a 10.35% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Judy Bruner sold 2,500 shares of the business’s stock in a transaction that occurred on Wednesday, February 25th. The stock was sold at an average price of $391.71, for a total transaction of $979,275.00. Following the sale, the director directly owned 26,089 shares in the company, valued at approximately $10,219,322.19. This represents a 8.74% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders have sold 12,003 shares of company stock worth $4,484,189. Insiders own 0.30% of the company’s stock.

Institutional Investors Weigh In On Applied Materials

Several institutional investors and hedge funds have recently made changes to their positions in the stock. Cornerstone Financial Management LLC purchased a new position in Applied Materials in the 4th quarter worth $25,000. Marquette Asset Management LLC grew its stake in Applied Materials by 150.0% during the 3rd quarter. Marquette Asset Management LLC now owns 125 shares of the manufacturing equipment provider’s stock valued at $26,000 after purchasing an additional 75 shares during the last quarter. Redmont Wealth Advisors LLC acquired a new position in shares of Applied Materials in the third quarter valued at about $26,000. Wilkerson Advisory Group LLC acquired a new position in shares of Applied Materials in the fourth quarter valued at about $26,000. Finally, Highline Wealth Partners LLC raised its stake in shares of Applied Materials by 48.7% in the fourth quarter. Highline Wealth Partners LLC now owns 116 shares of the manufacturing equipment provider’s stock worth $30,000 after purchasing an additional 38 shares during the last quarter. 80.56% of the stock is currently owned by institutional investors and hedge funds.

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.