Applied Materials (NASDAQ:AMAT) Stock Price Down 3.9% – Here’s Why

Applied Materials, Inc. (NASDAQ:AMAT) fell 3.9% on Tuesday . The stock traded as low as $497.73 and last traded at $514.33. 8,541,800 shares changed hands during trading, an increase of 3% from the average session volume of 8,259,510 shares. The stock had previously closed at $535.31.

Key Stories Impacting Applied Materials

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

• Positive Sentiment: Applied Materials’ AI-related growth, exposure to advanced semiconductor manufacturing and broad equipment portfolio continue to support a favorable long-term outlook. The company is viewed as a potential beneficiary of rising demand for memory and computing capacity. Should You Buy, Sell or Hold AMAT Stock After a 31% Rise in 3 Months?
• Positive Sentiment: B. Riley and Needham reiterated buy ratings, while analysts raised price targets to $600 and $660, signaling continued confidence in AMAT’s earnings and industry positioning. Applied Materials’ Buy Rating Reiterated at B. Riley
• Positive Sentiment: Applied Materials recently exceeded quarterly earnings and revenue expectations, with revenue rising sharply year over year, reinforcing the fundamental case for the shares.
• Neutral Sentiment: Investors are monitoring international revenue trends because overseas demand and regional sales mix could affect Wall Street forecasts and future growth expectations. Applied Materials International Revenue Trends
• Negative Sentiment: After a 31% three-month advance, AMAT’s premium earnings multiple leaves limited room for execution errors. Analysts caution that beating consensus estimates may not be sufficient if guidance or growth fails to exceed already-high expectations. Applied Materials When Beating Wall Street Numbers Isn’t Enough

Wall Street Analyst Weigh In

Several research firms have commented on AMAT. HC Wainwright set a $850.00 target price on Applied Materials in a research report on Monday, June 29th. Cantor Fitzgerald restated an “overweight” rating on shares of Applied Materials in a report on Friday. Wall Street Zen raised Applied Materials from a “hold” rating to a “buy” rating in a research note on Saturday. Barclays lifted their target price on shares of Applied Materials from $500.00 to $590.00 and gave the stock an “overweight” rating in a research report on Thursday, June 11th. Finally, Susquehanna boosted their target price on shares of Applied Materials from $575.00 to $900.00 and gave the stock a “positive” rating in a report on Tuesday, June 30th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-seven have issued a Buy rating and six have issued a Hold rating to the company’s stock. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $643.50.

Applied Materials Price Performance

The business has a 50-day simple moving average of $565.01 and a 200 day simple moving average of $447.20. The stock has a market cap of $408.36 billion, a P/E ratio of 44.34, a price-to-earnings-growth ratio of 1.25 and a beta of 1.61. The company has a current ratio of 2.42, a quick ratio of 1.79 and a debt-to-equity ratio of 0.20.

Applied Materials (NASDAQ:AMAT) last issued its quarterly earnings data on Thursday, August 13th. The manufacturing equipment provider reported $3.50 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $3.40 by $0.10. The company had revenue of $9.12 billion during the quarter, compared to the consensus estimate of $8.99 billion. Applied Materials had a return on equity of 38.02% and a net margin of 30.05%.The firm’s revenue was up 24.8% compared to the same quarter last year. During the same period last year, the company earned $2.48 earnings per share. Applied Materials has set its Q4 2026 guidance at 3.820-4.220 EPS. On average, analysts forecast that Applied Materials, Inc. will post 12.48 earnings per share for the current year.

Applied Materials Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Thursday, August 20th will be given a $0.53 dividend. 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 payout ratio is 18.28%.

Insider Activity at Applied Materials

In related news, CEO Gary E. Dickerson sold 20,000 shares of Applied Materials stock in a transaction on Tuesday, June 30th. The shares were sold at an average price of $735.22, for a total transaction of $14,704,400.00. Following the completion of the transaction, the chief executive officer owned 1,599,843 shares of the company’s stock, valued at $1,176,236,570.46. This trade represents a 1.23% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Prabu G. Raja sold 10,000 shares of the business’s stock in a transaction on Thursday, June 18th. The shares were sold at an average price of $633.53, for a total transaction of $6,335,300.00. Following the completion of the transaction, the insider owned 346,642 shares in the company, valued at approximately $219,608,106.26. The trade was a 2.80% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 278,088 shares of company stock valued at $169,654,805 over the last 90 days. 0.30% of the stock is owned by company insiders.

Institutional Investors Weigh In On Applied Materials

Large investors have recently added to or reduced their stakes in the business. Evolve Private Wealth LLC lifted its stake in shares of Applied Materials by 59.0% in the first quarter. Evolve Private Wealth LLC now owns 2,875 shares of the manufacturing equipment provider’s stock valued at $983,000 after buying an additional 1,067 shares in the last quarter. WealthPlan Investment Management LLC bought a new stake in shares of Applied Materials during the fourth quarter worth about $1,082,000. Ameritas Advisory Services LLC increased its position in shares of Applied Materials by 183.7% during the fourth quarter. Ameritas Advisory Services LLC now owns 3,073 shares of the manufacturing equipment provider’s stock worth $790,000 after acquiring an additional 1,990 shares in the last quarter. Handelsbanken Fonder AB raised its holdings in shares of Applied Materials by 29.6% in the 2nd quarter. Handelsbanken Fonder AB now owns 462,685 shares of the manufacturing equipment provider’s stock worth $334,521,000 after acquiring an additional 105,776 shares during the last quarter. Finally, CloudAlpha Capital Management Limited Hong Kong lifted its position in Applied Materials by 204.8% in the 4th quarter. CloudAlpha Capital Management Limited Hong Kong now owns 140,773 shares of the manufacturing equipment provider’s stock valued at $36,177,000 after acquiring an additional 94,587 shares in the last quarter. Institutional investors and hedge funds own 80.56% of the company’s stock.

Applied Materials Company Profile

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.