Applied Materials (NASDAQ:AMAT) Shares Down 10% Following Insider Selling

Applied Materials, Inc. (NASDAQ:AMAT)’s share price traded down 10% during trading on Wednesday following insider selling activity. The stock traded as low as $639.06 and last traded at $650.91. 15,772,370 shares were traded during trading, an increase of 92% from the average session volume of 8,230,612 shares. The stock had previously closed at $723.00.

Specifically, CEO Gary E. Dickerson sold 20,000 shares of the business’s stock in a transaction that occurred on Tuesday, June 30th. The stock was sold at an average price of $735.22, for a total value of $14,704,400.00. Following the transaction, the chief executive officer directly owned 1,599,843 shares of the company’s stock, valued at approximately $1,176,236,570.46. The trade was a 1.23% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Gary E. Dickerson sold 58,321 shares of the firm’s stock in a transaction that occurred on Monday, June 29th. The stock was sold at an average price of $700.36, for a total transaction of $40,845,695.56. Following the sale, the chief executive officer directly owned 1,619,843 shares of the company’s stock, valued at approximately $1,134,473,243.48. This trade represents a 3.48% decrease in their position. The SEC filing for this sale provides additional information.

Analyst Ratings Changes

AMAT has been the subject of several research analyst reports. Barclays lifted their price objective on shares of Applied Materials from $500.00 to $590.00 and gave the company an “overweight” rating in a research note on Thursday, June 11th. Truist Financial set a $575.00 price target on shares of Applied Materials in a report on Thursday, May 28th. Raymond James Financial set a $650.00 price target on shares of Applied Materials in a research note on Wednesday, June 10th. TD Cowen upped their price objective on shares of Applied Materials from $450.00 to $525.00 and gave the company a “buy” rating in a report on Friday, May 15th. Finally, Zacks Research raised shares of Applied Materials from a “hold” rating to a “strong-buy” rating in a research report on Wednesday. One investment analyst has rated the stock with a Strong Buy rating, twenty-seven have issued a Buy rating and seven have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $553.56.

Key Stories Impacting Applied Materials

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

• Positive Sentiment: Several analysts remained constructive on Applied Materials (AMAT), including reports of higher earnings estimates and a price target raise to as much as $900, reinforcing the view that AI-related chip spending could support growth. Article Title
• Positive Sentiment: Zacks Research upgraded AMAT from hold to strong-buy, adding to the bullish analyst backdrop. Article Title
• Neutral Sentiment: Coverage also highlighted Applied Materials as a key supplier benefiting from the AI buildout, with the company discussing DRAM and advanced packaging innovations tied to semiconductor growth. Article Title
• Neutral Sentiment: Michael Burry’s renewed short-bet headlines against chip stocks added a bearish macro backdrop for semis, but the reports were more sector-sentiment driven than company-specific. Article Title
• Negative Sentiment: Investors are questioning whether AMAT has gotten too expensive after a strong run, with commentary focusing on stretched valuation and the risk of profit-taking. Article Title
• Negative Sentiment: CEO Gary Dickerson disclosed stock sales totaling more than 78,000 shares over June 29-30, which can weigh on sentiment even though he still owns a very large stake. Article Title
• Negative Sentiment: Shares also came under pressure as semiconductor stocks pulled back amid fears that AI-driven chip demand may be cooling, which contributed to weakness in Applied Materials (AMAT). Article Title

Applied Materials Price Performance

The firm has a market cap of $478.79 billion, a P/E ratio of 56.62, a price-to-earnings-growth ratio of 1.81 and a beta of 1.57. The stock’s 50 day simple moving average is $495.52 and its 200 day simple moving average is $389.39. 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 released its quarterly earnings data on Thursday, May 14th. The manufacturing equipment provider reported $2.86 earnings per share for the quarter, beating analysts’ consensus estimates 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 business’s quarterly revenue was up 11.4% compared to the same quarter last year. During the same period last year, the firm earned $2.39 earnings per share. Applied Materials has set its Q3 2026 guidance at 3.160-3.560 EPS. Research analysts anticipate that Applied Materials, Inc. will post 12.11 EPS for the current year.

Applied Materials Announces Dividend

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

Hedge Funds Weigh In On Applied Materials

Hedge funds have recently added to or reduced their stakes in the stock. Cornerstone Financial Management LLC purchased a new position in shares of Applied Materials during the fourth quarter valued at approximately $25,000. Wilkerson Advisory Group LLC purchased a new stake in Applied Materials in the 4th quarter valued at $26,000. Financial Freedom LLC purchased a new stake in Applied Materials in the 1st quarter valued at $28,000. Highline Wealth Partners LLC lifted its stake in Applied Materials by 48.7% during the 4th quarter. Highline Wealth Partners LLC now owns 116 shares of the manufacturing equipment provider’s stock valued at $30,000 after acquiring an additional 38 shares in the last quarter. Finally, Joseph Group Capital Management purchased a new position in Applied Materials during the 4th quarter worth $31,000. 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.