Applied Materials Stock Jumps After JPMorgan Raises Price Target

Shares of Applied Materials, Inc. (NASDAQ: AMAT) rose by 1.2% on Monday following an upgrade from JPMorgan Chase & Co., which increased its price target from $220.00 to $260.00. The stock reached a high of $231.71 before closing at $228.71. Trading volume surged to approximately 8,705,937 shares, a significant 14% increase from the average daily volume of 7,652,786 shares.

Analysts’ assessments of Applied Materials have varied recently. On August 20, 2023, Daiwa Capital Markets lowered its rating to “neutral” with a price target of $170.00, down from $185.00. Conversely, Sanford C. Bernstein maintained an “outperform” rating with a price target of $250.00. In the same period, B. Riley reiterated a “buy” rating, raising its price objective from $265.00 to $270.00. Overall, nineteen analysts have issued a Buy rating, thirteen a Hold, and one a Sell, leading to a consensus rating of “Moderate Buy” with an average target price of $226.74, according to MarketBeat.com.

Financial Performance Overview

Applied Materials reported its quarterly earnings on November 13, 2023. The manufacturing equipment provider announced earnings per share (EPS) of $2.17, surpassing the consensus estimate of $2.11 by $0.06. The company generated revenue of $6.80 billion, exceeding expectations of $6.68 billion. Despite this positive performance, revenue decreased by 3.5% year-over-year, down from $2.32 EPS in the same quarter last year.

Applied Materials also provided guidance for Q1 2026, forecasting EPS between $1.980 and $2.380. Analysts project the company will achieve an EPS of 9.38 for the current year.

Dividend Announcement and Financial Ratios

The company recently announced a quarterly dividend of $0.46 per share, payable on December 11, 2023. Investors on record as of November 20, 2023 will receive this dividend, translating to an annualized dividend of $1.84 and a yield of 0.8%. The ex-dividend date is also set for November 20, 2023, with a current dividend payout ratio of 21.20%.

Financial ratios indicate a strong position for Applied Materials. The company has a debt-to-equity ratio of 0.28, a quick ratio of 1.76, and a current ratio of 2.50. The stock’s market capitalization stands at $182.20 billion, with a price-to-earnings (P/E) ratio of 27.26 and a P/E/G ratio of 2.95. The stock exhibits a beta of 1.84, suggesting higher volatility compared to the market.

As Applied Materials continues to navigate the semiconductor industry, these recent developments reflect both investor confidence and the company’s ongoing efforts to achieve growth in a competitive market.