Traders Purchase High Volume of Applied Materials Call Options (NASDAQ:AMAT)

Applied Materials, Inc. (NASDAQ:AMAT) saw unusually large options trading activity on Wednesday. Stock traders purchased 97,138 call options on the stock. This is an increase of 231% compared to the typical daily volume of 29,376 call options.

Analyst Ratings Changes

Several analysts have commented on AMAT shares. Needham & Company LLC lifted their price target on Applied Materials from $390.00 to $440.00 and gave the company a “buy” rating in a report on Friday, February 13th. Summit Insights upgraded shares of Applied Materials from a “hold” rating to a “buy” rating in a report on Friday, February 13th. Royal Bank Of Canada set a $430.00 price objective on Applied Materials in a report on Friday, February 13th. Weiss Ratings raised Applied Materials from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Monday, December 29th. Finally, Bank of America upped their price target on Applied Materials from $300.00 to $350.00 and gave the stock a “buy” rating in a research note on Tuesday, January 13th. Twenty-seven equities research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, Applied Materials presently has a consensus rating of “Moderate Buy” and a consensus target price of $363.04.

Applied Materials Price Performance

AMAT stock opened at $369.30 on Thursday. The firm has a market cap of $293.12 billion, a P/E ratio of 37.80, a price-to-earnings-growth ratio of 1.67 and a beta of 1.70. The company has a debt-to-equity ratio of 0.30, a quick ratio of 1.94 and a current ratio of 2.71. Applied Materials has a 1 year low of $123.74 and a 1 year high of $376.32. The stock has a 50-day simple moving average of $300.66 and a 200-day simple moving average of $240.45.

Applied Materials (NASDAQ:AMAT) last released its quarterly earnings results on Thursday, February 12th. The manufacturing equipment provider reported $2.38 earnings per share for the quarter, topping analysts’ consensus estimates 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 analysts’ expectations of $6.88 billion. During the same quarter in the prior year, the business earned $2.38 EPS. Applied Materials’s quarterly revenue 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, equities analysts predict that Applied Materials will post 9.38 earnings per share for the current fiscal year.

Applied Materials Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, March 12th. Investors of record on Thursday, February 19th will be paid a dividend of $0.46 per share. The ex-dividend date of this dividend is Thursday, February 19th. This represents a $1.84 annualized dividend and a yield of 0.5%. Applied Materials’s payout ratio is 18.83%.

Insider Transactions at Applied Materials

In related news, CFO Brice Hill sold 5,000 shares of the firm’s stock in a transaction that occurred on Tuesday, February 17th. The shares were sold at an average price of $361.21, for a total transaction of $1,806,050.00. Following the sale, the chief financial officer owned 138,565 shares in the company, valued at approximately $50,051,063.65. This trade represents a 3.48% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CAO Adam Sanders sold 609 shares of Applied Materials stock in a transaction that occurred on Monday, December 1st. The stock was sold at an average price of $255.53, for a total transaction of $155,617.77. Following the completion of the sale, the chief accounting officer directly owned 4,413 shares of the company’s stock, valued at $1,127,653.89. The trade was a 12.13% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 9,609 shares of company stock worth $2,914,628 over the last ninety days. 0.30% of the stock is currently owned by corporate insiders.

Institutional Trading of Applied Materials

Several large investors have recently modified their holdings of the business. Cornerstone Financial Management LLC acquired a new stake in Applied Materials during the 4th quarter valued at approximately $25,000. Marquette Asset Management LLC boosted its stake in shares of 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 buying an additional 75 shares during the last quarter. Redmont Wealth Advisors LLC acquired a new stake in shares of Applied Materials during the third quarter worth approximately $26,000. Wilkerson Advisory Group LLC bought a new stake in shares of Applied Materials in the fourth quarter worth $26,000. Finally, Highline Wealth Partners LLC raised its holdings in Applied Materials by 48.7% in the fourth quarter. Highline Wealth Partners LLC now owns 116 shares of the manufacturing equipment provider’s stock valued at $30,000 after acquiring an additional 38 shares in the last quarter. 80.56% of the stock is currently owned by institutional investors and hedge funds.

More Applied Materials News

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

• Positive Sentiment: Company fundamentals and guidance — AMAT beat Q1 estimates and management gave aggressive growth guidance (CEO projected ~20% calendar‑2026 sales and strong Q2 revenue outlook), which has driven analyst target‑price increases and renewed optimism among investors. 3 Under-the-Radar Earnings Surprises Could Signal a New Trend (AMAT)
• Positive Sentiment: Analyst upgrades and estimate revisions — Zacks bumped AMAT to a Strong Buy and published commentary noting upward earnings‑estimate revisions, supporting near‑term upside expectations. Applied Materials (AMAT) Upgraded to Strong Buy: Here’s Why
• Positive Sentiment: Large bullish options activity — unusually big call buying (≈97,138 calls, ~+231% vs. typical daily volume) suggests traders are positioning for further upside or protecting long exposure.
• Neutral Sentiment: Investor events — Applied Materials confirmed management will appear at upcoming investor conferences (opportunity for further detail/Q&A but not an immediate earnings surprise). Applied Materials to Participate in Upcoming Investor Conferences
• Neutral Sentiment: Mixed analyst commentary — some publications note conflicting analyst views on AMAT amid sector rotation and valuation debates; this creates variable near‑term sentiment even as fundamentals look strong. Analysts Have Conflicting Sentiments on These Technology Companies
• Neutral Sentiment: Short‑interest data appears unreliable — reports show zero/NaN short interest and a 0.0 days‑to‑cover metric, which is likely a reporting anomaly and not meaningful for positioning today.
• Negative Sentiment: Insider sale — CFO Brice Hill sold 5,000 shares for ~$1.8M, trimming his stake by ~3.5%; while routine insider sales often fund personal liquidity, some investors view insider selling as a mild negative signal. SEC Form 4

Applied Materials Company Profile

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.