Prabu Raja Sells 10,000 Shares of Applied Materials (NASDAQ:AMAT) Stock

Applied Materials, Inc. (NASDAQ:AMAT) insider Prabu Raja sold 10,000 shares of the business’s stock in a transaction dated Thursday, June 18th. The stock was 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 directly owned 346,642 shares in the company, valued at $219,608,106.26. This trade represents a 2.80% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link.

Applied Materials Price Performance

AMAT opened at $585.88 on Wednesday. Applied Materials, Inc. has a fifty-two week low of $154.46 and a fifty-two week high of $641.18. The firm has a 50-day moving average of $459.63 and a 200 day moving average of $370.55. The company has a debt-to-equity ratio of 0.22, a quick ratio of 1.80 and a current ratio of 2.51. The firm has a market cap of $465.17 billion, a P/E ratio of 55.01, a PEG ratio of 1.78 and a beta of 1.67.

Applied Materials (NASDAQ:AMAT) last announced its quarterly earnings data on Thursday, May 14th. The manufacturing equipment provider reported $2.86 EPS for the quarter, topping the consensus estimate of $2.68 by $0.18. The business 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 in the previous year, the firm posted $2.39 earnings per share. Applied Materials has set its Q3 2026 guidance at 3.160-3.560 EPS. On average, research analysts expect that Applied Materials, Inc. will post 12.1 EPS for the current year.

Applied Materials Dividend Announcement

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

Analyst Ratings Changes

A number of analysts have issued reports on the company. Barclays raised their target price on Applied Materials from $500.00 to $590.00 and gave the stock an “overweight” rating in a research report on Thursday, June 11th. JPMorgan Chase & Co. upped their price target on Applied Materials from $400.00 to $515.00 and gave the company an “overweight” rating in a research report on Friday, May 15th. Needham & Company LLC lifted their price objective on Applied Materials from $440.00 to $530.00 and gave the stock a “buy” rating in a report on Friday, May 15th. Wells Fargo & Company boosted their price objective on Applied Materials from $520.00 to $715.00 and gave the company an “overweight” rating in a research note on Monday. Finally, Royal Bank Of Canada upped their price objective on shares of Applied Materials from $500.00 to $520.00 and gave the company an “outperform” rating in a report on Friday, May 15th. Twenty-seven analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the stock. According to data from MarketBeat.com, Applied Materials currently has an average rating of “Moderate Buy” and a consensus price target of $501.26.

Institutional Investors Weigh In On Applied Materials

A number of institutional investors and hedge funds have recently modified their holdings of AMAT. Cornerstone Financial Management LLC purchased a new position in Applied Materials during the fourth quarter valued at approximately $25,000. Wilkerson Advisory Group LLC bought a new position in Applied Materials in the 4th quarter valued at $26,000. Financial Freedom LLC bought a new position in Applied Materials in the 1st quarter valued at $28,000. Highline Wealth Partners LLC grew its position in shares of 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 purchasing an additional 38 shares in the last quarter. Finally, Joseph Group Capital Management purchased a new position in shares of Applied Materials during the 4th quarter valued at $31,000. 80.56% of the stock is owned by hedge funds and other institutional investors.

Key Applied Materials News

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

• Positive Sentiment: Wells Fargo upgraded Applied Materials to Buy, adding to a growing list of bullish analyst calls and reinforcing confidence in the company’s growth outlook.
• Positive Sentiment: Applied Materials unveiled two new chipmaking systems for next-generation AI chips, highlighting new product momentum in its core semiconductor equipment business and potential demand tied to AI infrastructure.
• Positive Sentiment: Recent commentary and analyst notes continue to suggest AI-driven semiconductor spending could support Applied Materials’ premium valuation and future earnings growth.
• Neutral Sentiment: Insider Prabu G. Raja sold 10,000 shares, a disclosure that may get attention but does not by itself signal a change in the company’s fundamentals.
• Negative Sentiment: Applied Materials fell alongside other chip names after a report that SK Hynix is slowing HBM expansion, which raised concerns about near-term AI-chip demand across the sector.
• Negative Sentiment: Some market coverage also flagged AMAT’s valuation as stretched after a strong rally, suggesting investors may be more sensitive to any slowdown in growth expectations.

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.