Applied Materials Shares Rise 1.3% Following Dividend Announcement

Applied Materials, Inc. (NASDAQ:AMAT) experienced a 1.3% increase in its stock price during mid-day trading on Friday, following the announcement of a new dividend. The shares reached a peak of $349.25 before concluding the session at $341.53. During this period, approximately 5,182,045 shares changed hands, marking a significant decline of 35% from the average trading volume of 7,961,021 shares. The stock had previously closed at $337.27.

The newly declared dividend is set to be paid on Thursday, June 11, 2025, to investors on record as of May 21, 2025. Shareholders will receive a dividend of $0.53, an increase from the prior quarterly dividend of $0.46. This adjustment results in an annualized dividend of $2.12 with a yield of 0.6%. Currently, Applied Materials maintains a dividend payout ratio of 18.83%.

Analysts Adjust Price Targets for Applied Materials

A number of equity analysts have recently revised their price targets for Applied Materials. On February 13, 2025, Barclays raised its target from $360.00 to $450.00, assigning an “overweight” rating to the stock. Similarly, Susquehanna upgraded its rating from “neutral” to “positive,” increasing its price objective from $180.00 to $400.00 in a note dated January 11, 2025.

Cantor Fitzgerald reaffirmed an “overweight” rating with a target of $470.00 on the same day. Additionally, JPMorgan Chase & Co. adjusted its price target from $220.00 to $260.00 while maintaining an “overweight” rating in a report dated November 14, 2024. B. Riley Financial also reiterated a “buy” rating, increasing its target from $400.00 to $450.00.

According to MarketBeat, one research analyst has rated the stock as a Strong Buy, while 26 analysts have given it a Buy rating and seven have assigned a Hold rating. The consensus rating is classified as “Moderate Buy,” with a consensus price target of $363.46.

Recent Financial Performance and Insider Activity

Applied Materials reported its latest quarterly earnings on February 12, 2025, delivering earnings per share (EPS) of $2.38. This figure exceeded analysts’ consensus estimate of $2.21 by $0.17. The company’s revenue for the quarter reached $7.01 billion, surpassing the anticipated $6.88 billion. Despite this success, revenue was down 2.1% compared to the same quarter in the previous year, during which the business reported an EPS of $2.38.

In terms of future outlook, Applied Materials has provided guidance for Q2 2026, forecasting an EPS range of $2.440 to $2.840. Analysts project that the company will achieve an average EPS of 9.38 for the current year.

In related insider trading news, Chief Accounting Officer Adam Sanders sold 534 shares on February 24, 2025, at an average price of $379.16, amounting to a total value of $202,471.44. Following this transaction, Sanders retains ownership of 4,625 shares valued at approximately $1,753,615.

Director Judy Bruner also sold 3,969 shares on February 23, 2025, at an average price of $377.02, resulting in a total transaction of $1,496,392.38. Following the sale, Bruner owns 28,589 shares valued at $10,778,624.78. Over the past three months, insiders have sold a total of 12,003 shares valued at $4,484,189, with insiders currently holding 0.30% of the company’s stock.

Institutional investors have been active as well, with several modifying their holdings in Applied Materials. Warther Private Wealth LLC increased its holdings by 1.5% in the fourth quarter, now owning 1,908 shares worth $490,000. Tradition Wealth Management LLC raised its holdings by 3.1%, owning 1,031 shares valued at $265,000 after acquiring 31 additional shares.

Overall, hedge funds and institutional investors collectively own 80.56% of Applied Materials’ stock. This level of institutional interest indicates a strong confidence in the company’s potential moving forward.

Applied Materials, headquartered in Santa Clara, California, is a leading supplier of equipment, services, and software for the manufacturing of semiconductor chips, flat panel displays, and other advanced materials. The company continues to innovate in its field, providing essential technologies that enable the production of integrated circuits and display panels across the electronics supply chain.