Applied Materials (NASDAQ:AMAT) Trading Down 2.7% – Time to Sell?

Applied Materials, Inc. (NASDAQ:AMAT) dropped 2.7% during trading on Wednesday . The company traded as low as $557.16 and last traded at $579.43. Approximately 8,150,216 shares changed hands during trading, a decline of 2% from the average session volume of 8,328,078 shares. The stock had previously closed at $595.70.

Applied Materials News Summary

Here are the key news stories impacting Applied Materials this week:

• Positive Sentiment: Applied Materials’ CEO reinforced the company’s AI investment thesis, suggesting semiconductor spending tied to AI could stay elevated for years and supporting a multiyear growth outlook. Applied Materials CEO Just Reinforced the AI Investment Thesis. How to Play AMAT Stock Here.
• Positive Sentiment: Mizuho reportedly raised its price target on AMAT, reflecting continued confidence in demand trends and analyst expectations for strong EPS growth over the next year. Mizuho Raises PT on Applied Materials (AMAT)
• Positive Sentiment: Applied Materials landed a 10-year TSMC AI packaging partnership, a potentially meaningful long-term win that strengthens its role in advanced chip manufacturing. Applied Materials (AMAT) Lands 10 Year TSMC AI Packaging Partnership
• Positive Sentiment: Additional commentary framed AMAT as a “picks-and-shovels” AI play, with more articles citing strong demand, expanding AI infrastructure, and favorable sector momentum. Applied Materials: The Picks-and-Shovels Play in an AI Era Will Continue to Trend Higher
• Neutral Sentiment: Some coverage notes that the stock has already rallied sharply over the past six months, which could make investors more cautious about valuation and near-term upside after a big run. 2 Reasons to Watch AMAT and 1 to Stay Cautious
• Neutral Sentiment: Brokerage commentary was mixed, with Morgan Stanley maintaining an Equal Weight rating even as other firms turned more constructive. Morgan Stanley Maintains an “Equal Weight” Rating on Applied Materials, Inc. (AMAT)
• Negative Sentiment: Recent headlines also show a prior pullback after a strong run, reminding investors that AMAT can be volatile if sentiment shifts or expectations become too stretched. Applied Materials (AMAT) Declines More Than Market: Some Information for Investors

Analyst Ratings Changes

AMAT has been the topic of a number of research reports. Raymond James Financial set a $650.00 target price on Applied Materials in a report on Wednesday, June 10th. Wells Fargo & Company boosted their price objective on shares of Applied Materials from $715.00 to $740.00 and gave the company an “overweight” rating in a research report on Friday, June 26th. Needham & Company LLC upped their price objective on shares of Applied Materials from $530.00 to $740.00 and gave the company a “buy” rating in a research note on Friday, July 10th. TD Cowen increased their target price on shares of Applied Materials from $525.00 to $700.00 and gave the stock a “buy” rating in a research report on Thursday, July 9th. Finally, Bank of America lifted their target price on shares of Applied Materials from $540.00 to $720.00 and gave the company a “buy” rating in a research note on Tuesday, June 23rd. One analyst has rated the stock with a Strong Buy rating, twenty-seven have given a Buy rating and six have assigned a Hold rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $593.84.

Applied Materials Trading Down 2.7%

The company has a 50 day moving average of $525.21 and a 200 day moving average of $407.88. The firm has a market cap of $460.04 billion, a P/E ratio of 54.41, a PEG ratio of 1.46 and a beta of 1.57. The company has a debt-to-equity ratio of 0.22, a quick ratio of 1.80 and a current ratio of 2.51.

Applied Materials (NASDAQ:AMAT) last issued its quarterly earnings data on Thursday, May 14th. The manufacturing equipment provider reported $2.86 earnings per share for the quarter, beating the consensus estimate of $2.68 by $0.18. The firm had revenue of $7.91 billion for the quarter, compared to analyst estimates of $7.68 billion. Applied Materials had a net margin of 29.31% and a return on equity of 36.97%. The company’s revenue for the quarter was up 11.4% on a year-over-year basis. During the same quarter last year, the firm earned $2.39 earnings per share. Applied Materials has set its Q3 2026 guidance at 3.160-3.560 EPS. Analysts predict that Applied Materials, Inc. will post 12.13 EPS for the current fiscal year.

Applied Materials Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Thursday, August 20th will be issued a dividend of $0.53 per share. The ex-dividend date is Thursday, August 20th. This represents a $2.12 dividend on an annualized basis and a dividend yield of 0.4%. Applied Materials’s dividend payout ratio (DPR) is currently 19.91%.

Insider Transactions at Applied Materials

In related news, SVP Timothy M. Deane sold 8,621 shares of the company’s stock in a transaction on Monday, June 15th. The shares were sold at an average price of $590.76, for a total value of $5,092,941.96. Following the completion of the sale, the senior vice president directly owned 134,631 shares in the company, valued at approximately $79,534,609.56. This represents a 6.02% 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 sold 20,000 shares of the firm’s stock in a transaction dated Tuesday, June 30th. The shares were sold at an average price of $735.22, for a total value of $14,704,400.00. Following the transaction, the chief executive officer owned 1,599,843 shares in the company, valued at approximately $1,176,236,570.46. This trade represents a 1.23% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 278,088 shares of company stock valued at $169,654,805 in the last three months. 0.30% of the stock is currently owned by company insiders.

Institutional Trading of Applied Materials

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Regent Peak Wealth Advisors LLC grew its stake in shares of Applied Materials by 5.1% in the second quarter. Regent Peak Wealth Advisors LLC now owns 2,002 shares of the manufacturing equipment provider’s stock worth $1,447,000 after acquiring an additional 98 shares during the last quarter. JFS Wealth Advisors LLC grew its position in Applied Materials by 4.3% in the 2nd quarter. JFS Wealth Advisors LLC now owns 409 shares of the manufacturing equipment provider’s stock worth $296,000 after purchasing an additional 17 shares during the last quarter. Tema ETFs LLC increased its holdings in shares of Applied Materials by 5.1% during the 2nd quarter. Tema ETFs LLC now owns 18,181 shares of the manufacturing equipment provider’s stock worth $13,145,000 after purchasing an additional 880 shares during the period. Haven Capital Group Inc. acquired a new position in shares of Applied Materials during the second quarter valued at about $260,000. Finally, West Branch Capital LLC raised its position in shares of Applied Materials by 8.8% during the second quarter. West Branch Capital LLC now owns 5,661 shares of the manufacturing equipment provider’s stock valued at $4,093,000 after buying an additional 458 shares during the last quarter. Institutional investors and hedge funds own 80.56% of the company’s stock.

About Applied Materials

Applied Materials, Inc is a U.S.-based supplier of equipment, services and software used to manufacture semiconductor chips, flat panel displays and other advanced materials. Headquartered in Santa Clara, California, the company designs and sells capital equipment and related technologies that enable production of integrated circuits, display panels and materials used across the electronics supply chain.

Applied Materials’ offerings include process equipment and factory software that support critical steps in device fabrication, such as deposition, etch, implantation, inspection and metrology, as well as systems for packaging and advanced heterogeneous integration.