Analysts Set Target Price of $234.74 for Applied Materials Stock

Applied Materials, Inc. (NASDAQ:AMAT) has received a consensus rating of “Moderate Buy” from thirty-four brokerages currently tracking the stock, according to Marketbeat Ratings. This rating reflects a mix of recommendations, with fourteen analysts advising a hold and twenty suggesting a buy. The average target price established by these analysts is set at approximately $234.74.

Several recent reports from notable financial institutions have highlighted the stock’s potential. Needham & Company LLC reaffirmed a “buy” rating and established a price target of $260.00 in a research note dated November 14, 2023. Conversely, Deutsche Bank Aktiengesellschaft revised its outlook, reducing its price target from $200.00 to $170.00 while maintaining a “hold” rating as of August 15, 2023.

Further bolstering investor confidence, Morgan Stanley reiterated an “overweight” rating and set a target price of $273.00 on December 2, 2023. Additionally, B. Riley upgraded its position, increasing its price target from $265.00 to $270.00 on the same day as Needham’s report. In a significant move, TD Cowen raised its target from $260.00 to $315.00, categorizing the stock as a “buy” on December 4, 2023.

Institutional Investment Trends

Recent changes in institutional investment further underscore interest in Applied Materials. State Street Corp increased its holdings by 1.0% in the second quarter, now owning approximately 38.9 million shares valued at around $7.13 billion. Similarly, Geode Capital Management LLC raised its shareholdings by 2.0%, bringing its total to 21 million shares worth approximately $3.84 billion.

Notably, Capital Research Global Investors made a substantial increase, raising its stake by 225.4% in the third quarter, now owning almost 14.9 million shares valued at about $3.05 billion. AllianceBernstein L.P. also significantly boosted its investment by 72.5%, acquiring an additional 5.7 million shares. Together, these institutional investors now hold approximately 80.56% of Applied Materials’ stock.

Recent Financial Performance and Dividend Announcements

On November 13, 2023, Applied Materials reported its quarterly earnings, revealing earnings per share (EPS) of $2.17, exceeding the consensus estimate of $2.11 by $0.06. The company achieved revenue of $6.80 billion, surpassing analysts’ expectations of $6.68 billion. However, this figure marked a 3.5% decline compared to the same quarter the previous year when the EPS was $2.32.

Looking ahead, Applied Materials has projected its EPS guidance for the first quarter of fiscal year 2026 to be between $1.980 and $2.380. Analysts anticipate that the company will report an EPS of $9.38 for the current fiscal year.

In addition to its financial results, Applied Materials recently announced a quarterly dividend of $0.46, set to be paid on December 11, 2023. Shareholders on record as of November 20, 2023, will be eligible for this dividend, which translates to an annualized dividend of $1.84 and a yield of 0.7%. The company maintains a dividend payout ratio of 21.20%.

Applied Materials operates in the semiconductor, display, and related industries, providing manufacturing equipment, services, and software. Its business segments include Semiconductor Systems, Applied Global Services, and Display and Adjacent Markets. The company continues to play a crucial role in advancing technology in its field, as reflected in its recent performance and investor interest.