B. Riley Lowers Earnings Estimates for Applied Materials

Applied Materials, Inc. (NASDAQ:AMAT) – Stock analysts at B. Riley reduced their Q3 2025 earnings estimates for Applied Materials in a research report issued on Thursday, May 15th. B. Riley analyst C. Ellis now forecasts that the manufacturing equipment provider will post earnings per share of $2.35 for the quarter, down from their previous forecast of $2.43. B. Riley has a “Buy” rating and a $215.00 price objective on the stock. The consensus estimate for Applied Materials’ current full-year earnings is $9.38 per share. B. Riley also issued estimates for Applied Materials’ Q4 2025 earnings at $2.44 EPS, FY2025 earnings at $9.55 EPS, Q1 2026 earnings at $2.34 EPS, Q2 2026 earnings at $2.42 EPS, Q3 2026 earnings at $2.62 EPS, Q4 2026 earnings at $2.81 EPS, FY2026 earnings at $10.18 EPS and FY2027 earnings at $11.14 EPS.

Applied Materials (NASDAQ:AMAT) last announced its quarterly earnings results on Thursday, May 15th. The manufacturing equipment provider reported $2.39 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.31 by $0.08. The firm had revenue of $7.10 billion for the quarter, compared to the consensus estimate of $7.12 billion. Applied Materials had a net margin of 22.95% and a return on equity of 39.50%. The business’s quarterly revenue was up 6.8% compared to the same quarter last year. During the same quarter last year, the firm posted $2.09 EPS.

Other analysts also recently issued reports about the stock. Bank of America reduced their price target on shares of Applied Materials from $205.00 to $190.00 and set a “buy” rating on the stock in a report on Wednesday, April 16th. Susquehanna boosted their price objective on shares of Applied Materials from $155.00 to $165.00 and gave the company a “neutral” rating in a research report on Wednesday, January 22nd. Citigroup increased their price target on Applied Materials from $170.00 to $190.00 and gave the stock a “buy” rating in a report on Friday. Needham & Company LLC reiterated a “buy” rating and set a $195.00 price objective on shares of Applied Materials in a report on Friday. Finally, Raymond James reiterated an “outperform” rating and issued a $200.00 target price (down from $225.00) on shares of Applied Materials in a report on Friday. One research analyst has rated the stock with a sell rating, six have issued a hold rating and sixteen have assigned a buy rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $199.48.

Applied Materials Stock Performance

Shares of AMAT opened at $165.94 on Monday. The stock has a market cap of $134.82 billion, a price-to-earnings ratio of 21.69, a PEG ratio of 1.81 and a beta of 1.71. Applied Materials has a 52 week low of $123.74 and a 52 week high of $255.89. The business has a 50-day simple moving average of $149.52 and a two-hundred day simple moving average of $165.12. The company has a quick ratio of 1.96, a current ratio of 2.67 and a debt-to-equity ratio of 0.29.

Institutional Investors Weigh In On Applied Materials

Several institutional investors and hedge funds have recently bought and sold shares of the business. Crews Bank & Trust acquired a new stake in shares of Applied Materials in the fourth quarter valued at $28,000. FPC Investment Advisory Inc. acquired a new stake in shares of Applied Materials during the fourth quarter worth approximately $28,000. Runnymede Capital Advisors Inc. grew its holdings in shares of Applied Materials by 972.2% during the 1st quarter. Runnymede Capital Advisors Inc. now owns 193 shares of the manufacturing equipment provider’s stock valued at $28,000 after acquiring an additional 175 shares in the last quarter. Smallwood Wealth Investment Management LLC acquired a new position in Applied Materials in the 1st quarter worth about $29,000. Finally, Clal Insurance Enterprises Holdings Ltd lifted its stake in Applied Materials by 435.0% in the first quarter. Clal Insurance Enterprises Holdings Ltd now owns 214 shares of the manufacturing equipment provider’s stock valued at $31,000 after acquiring an additional 174 shares during the last quarter. Institutional investors and hedge funds own 80.56% of the company’s stock.

Insider Buying and Selling at Applied Materials

In related news, CAO Adam Sanders sold 450 shares of the stock in a transaction dated Tuesday, April 1st. The stock was sold at an average price of $144.83, for a total value of $65,173.50. Following the completion of the transaction, the chief accounting officer now owns 6,077 shares of the company’s stock, valued at approximately $880,131.91. This represents a 6.89% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this link. Also, CEO Gary E. Dickerson purchased 50,000 shares of the firm’s stock in a transaction that occurred on Thursday, April 3rd. The stock was purchased at an average price of $137.30 per share, with a total value of $6,865,000.00. Following the completion of the purchase, the chief executive officer now directly owns 1,716,058 shares of the company’s stock, valued at approximately $235,614,763.40. This represents a 3.00% increase in their position. The disclosure for this purchase can be found here. 0.24% of the stock is owned by company insiders.

Applied Materials announced that its Board of Directors has authorized a share buyback program on Monday, March 10th that permits the company to repurchase $10.00 billion in shares. This repurchase authorization permits the manufacturing equipment provider to repurchase up to 8.2% of its stock through open market purchases. Stock repurchase programs are usually a sign that the company’s management believes its shares are undervalued.

Applied Materials Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, June 12th. Stockholders of record on Thursday, May 22nd will be given a $0.46 dividend. The ex-dividend date is Thursday, May 22nd. This represents a $1.84 dividend on an annualized basis and a dividend yield of 1.11%. This is an increase from Applied Materials’s previous quarterly dividend of $0.40. Applied Materials’s payout ratio is currently 22.38%.

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.