Applied Materials (NASDAQ:AMAT) Shares Down 3.2% Following Insider Selling

Applied Materials, Inc. (NASDAQ:AMAT) shares fell 3.2% during mid-day trading on Thursday after an insider sold shares in the company. The stock traded as low as $450.56 and last traded at $454.01. Approximately 4,832,154 shares changed hands during mid-day trading, a decline of 40% from the average session volume of 8,076,179 shares. The stock had previously closed at $468.85.

Specifically, Director Judy Bruner sold 1,000 shares of the stock in a transaction dated Tuesday, September 8th. The stock was sold at an average price of $465.00, for a total value of $465,000.00. Following the transaction, the director owned 25,544 shares of the company’s stock, valued at approximately $11,877,960. This represents a 3.77% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website.

Analysts Set New Price Targets

A number of brokerages have issued reports on AMAT. Wolfe Research raised their target price on Applied Materials from $500.00 to $550.00 and gave the stock an “outperform” rating in a report on Friday, May 15th. Barclays upped their price target on Applied Materials from $500.00 to $590.00 and gave the company an “overweight” rating in a research note on Thursday, June 11th. Royal Bank Of Canada lifted their price objective on shares of Applied Materials from $520.00 to $600.00 and gave the stock an “outperform” rating in a research note on Friday, August 14th. KeyCorp boosted their price objective on shares of Applied Materials from $550.00 to $750.00 and gave the company an “overweight” rating in a report on Monday, June 29th. Finally, William Blair assumed coverage on shares of Applied Materials in a research note on Tuesday, August 11th. They issued a “market perform” rating for the company. One investment analyst has rated the stock with a Strong Buy rating, twenty-seven have given a Buy rating and five have given a Hold rating to the company. Based on data from MarketBeat, Applied Materials has an average rating of “Moderate Buy” and an average target price of $658.45.

Applied Materials News Roundup

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

• Positive Sentiment: CEO Gary Dickerson said the AI boom remains durable, citing customer orders that extend years into the future. Commentary from industry peers reportedly supports continued demand for semiconductor manufacturing equipment, strengthening the growth outlook for AMAT. Applied Materials AI demand outlook
• Positive Sentiment: Applied Materials maintained its quarterly dividend at $0.53 per share, payable December 10 to shareholders of record November 19. The payment follows a 15% dividend increase announced in March and signals continued confidence in cash generation. Applied Materials dividend announcement
• Positive Sentiment: AMAT’s latest reported quarter exceeded expectations, with adjusted EPS of $3.50 versus a $3.40 consensus estimate and revenue of $9.12 billion versus $8.99 billion. Revenue increased 24.8% year over year, supporting the bullish AI and semiconductor-cycle narrative.
• Neutral Sentiment: Investor articles are comparing AMAT favorably with Intel because Applied Materials is profitable, has relatively low debt and supplies the equipment needed to build advanced chips. However, the stock’s roughly 39 price-to-earnings ratio leaves less room for execution disappointments. Applied Materials versus Intel comparison
• Neutral Sentiment: Analyst coverage remains broadly favorable, with a consensus “Moderate Buy” rating and an average target of $658.45. Nonetheless, the wide range between bullish and bearish scenarios highlights uncertainty surrounding AI demand, semiconductor cyclicality and valuation.
• Negative Sentiment: Director Judy Bruner sold 1,000 shares for approximately $465,000, reducing her holdings by 3.77%. She still retains a substantial position, so the transaction is a modest sentiment negative rather than a major change in insider conviction. SEC insider sale filing
• Negative Sentiment: Risk-focused commentary notes that AMAT tends to amplify market moves. Its beta of 1.60 and elevated valuation could make the stock vulnerable if AI spending expectations weaken or broader technology shares pull back. Applied Materials volatility analysis

Applied Materials Stock Up 0.5%

The company has a market capitalization of $362.27 billion, a P/E ratio of 39.35, a P/E/G ratio of 1.27 and a beta of 1.60. The company has a quick ratio of 1.79, a current ratio of 2.42 and a debt-to-equity ratio of 0.20. The firm has a fifty day simple moving average of $513.89 and a 200-day simple moving average of $463.93.

Applied Materials (NASDAQ:AMAT) last released its quarterly earnings data on Thursday, August 13th. The manufacturing equipment provider reported $3.50 earnings per share for the quarter, beating the consensus estimate of $3.40 by $0.10. Applied Materials had a return on equity of 38.02% and a net margin of 30.05%.The business had revenue of $9.12 billion for the quarter, compared to analysts’ expectations of $8.99 billion. During the same quarter in the previous year, the business posted $2.48 EPS. Applied Materials’s revenue for the quarter was up 24.8% on a year-over-year basis. Applied Materials has set its Q4 2026 guidance at 3.820-4.220 EPS. On average, equities research analysts expect that Applied Materials, Inc. will post 12.76 EPS for the current fiscal year.

Applied Materials Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Thursday, November 19th will be issued a $0.53 dividend. This represents a $2.12 annualized dividend and a dividend yield of 0.5%. The ex-dividend date is Thursday, November 19th. Applied Materials’s dividend payout ratio is 18.28%.

Institutional Investors Weigh In On Applied Materials

Large investors have recently made changes to their positions in the stock. California State Teachers Retirement System increased its holdings in Applied Materials by 70,976.9% during the 2nd quarter. California State Teachers Retirement System now owns 870,192,678 shares of the manufacturing equipment provider’s stock worth $629,149,306,000 after purchasing an additional 868,968,380 shares in the last quarter. Capital Research Global Investors lifted its holdings in shares of Applied Materials by 119.8% in the fourth quarter. Capital Research Global Investors now owns 32,707,049 shares of the manufacturing equipment provider’s stock valued at $8,405,458,000 after purchasing an additional 17,829,377 shares in the last quarter. Norges Bank bought a new stake in shares of Applied Materials in the fourth quarter valued at about $2,858,543,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its position in shares of Applied Materials by 617.2% during the third quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 9,129,483 shares of the manufacturing equipment provider’s stock worth $1,869,170,000 after buying an additional 7,856,576 shares during the period. Finally, Bank of America Corp DE acquired a new position in shares of Applied Materials during the second quarter worth about $5,252,863,000. Institutional investors own 80.56% of the company’s stock.

About Applied Materials

Applied Materials, Inc is a global provider of materials engineering solutions used to manufacture semiconductors, displays and other advanced electronic products. The company develops and supplies equipment, services and software that help customers build and improve the performance of chips and display panels.

Its semiconductor products support processes including deposition, etch, patterning, inspection, metrology and materials modification. Applied Materials also provides equipment and services for display manufacturing, including technologies used in producing liquid-crystal and organic light-emitting diode displays, as well as solutions for adjacent markets such as solar and other specialty applications.

Founded in 1967 and headquartered in Santa Clara, California, Applied Materials serves semiconductor and display manufacturers worldwide through operations, customer-support centers and research and development activities across major technology-producing regions.