Mizuho Upgrades Applied Materials to Outperform with New Price Target

Investment analysts at Mizuho have upgraded their rating for Applied Materials (NASDAQ: AMAT) from “hold” to “outperform.” This change was detailed in a research report released to clients on November 13, 2023. Mizuho has set a new price target of $370.00 for the semiconductor manufacturing equipment provider, an increase from their previous target of $275.00. This new target suggests a potential upside of approximately 9.87% based on the company’s current stock price.

Several other analysts have also recently evaluated Applied Materials, reflecting a generally positive outlook on the company. For instance, Needham & Company LLC raised its price target from $260.00 to $390.00 and assigned a “buy” rating in a report issued on January 20, 2024. Similarly, Jefferies Financial Group increased its price target from $260.00 to $360.00, while maintaining a “buy” rating in a report dated December 15, 2023. Other firms, including Stifel Nicolaus and JPMorgan Chase & Co., have also raised their price targets, with Stifel now at $340.00 and JPMorgan at $260.00.

As of the latest data, a total of twenty-four analysts have rated Applied Materials with a “buy” recommendation, while nine analysts have issued a “hold” rating. According to MarketBeat.com, the consensus rating for the stock is classified as a “Moderate Buy,” with an average target price of $298.14.

Recent Earnings Performance

Applied Materials reported its quarterly earnings on November 13, 2023. The company achieved an earnings per share (EPS) of $2.17, exceeding analysts’ expectations of $2.11 by $0.06. The firm reported revenue of $6.80 billion for the quarter, above the forecast of $6.68 billion. Despite the strong performance, revenue decreased by 3.5% compared to the same quarter the previous year. The company has set its earnings guidance for the first quarter of fiscal year 2026 between $1.980 and $2.380 per share.

Looking ahead, analysts are projecting that Applied Materials will report an EPS of $9.38 for the current fiscal year.

Insider Trading Activity

In recent insider trading activity, Teri A. Little, Senior Vice President, sold 4,000 shares of the company’s stock on November 25, at an average price of $238.24, totaling nearly $952,960.00. Following this transaction, Little’s ownership decreased by 4.53%, leaving her with 84,351 shares valued at approximately $20,095,782.24.

Additionally, Adam Sanders, Chief Accounting Officer, sold 609 shares on December 1 at an average price of $255.53, amounting to about $155,617.77. After this sale, Sanders owns 4,413 shares valued at around $1,127,653.89, reflecting a 12.13% reduction in his stake.

Over the past 90 days, insiders have sold a total of 8,609 shares worth approximately $2,044,898. Currently, insiders hold 0.24% of the company’s stock.

Institutional Investments

Several large institutional investors have recently adjusted their positions in Applied Materials. State Street Corp increased its stake by 1.0% in the second quarter, now holding 38,920,984 shares valued at around $7.13 billion. Geode Capital Management LLC raised its holdings by 2.0%, now owning 21,026,363 shares worth approximately $3.84 billion.

Capital Research Global Investors significantly boosted its position by 225.4% in the third quarter, acquiring an additional 10,305,182 shares to reach 14,877,672 shares, valued at about $3.05 billion. Additionally, AllianceBernstein L.P. increased its holdings by 72.5%, now owning 13,564,120 shares worth $2.48 billion.

Overall, institutional investors currently hold approximately 80.56% of Applied Materials’ stock, indicating strong institutional confidence in the company’s future prospects.

About Applied Materials

Founded in the United States and headquartered in Santa Clara, California, Applied Materials, Inc. specializes in providing equipment, services, and software essential for the manufacturing of semiconductor chips, flat panel displays, and other advanced materials. The company’s offerings encompass vital technologies used throughout the electronics supply chain, including factory software and process equipment that facilitate critical fabrication steps such as deposition, etching, and inspection.

As market dynamics continue to evolve, Applied Materials remains a key player in the semiconductor manufacturing sector, poised for potential growth driven by ongoing advancements in technology and increased demand for electronic devices.