Applied Materials (NASDAQ:AMAT) Shares Down 3.2% – Here’s What Happened

Applied Materials, Inc. (NASDAQ:AMAT) was down 3.2% on Thursday . The stock traded as low as $557.27 and last traded at $560.93. Approximately 8,345,680 shares traded hands during mid-day trading, an increase of 0% from the average session volume of 8,328,482 shares. The stock had previously closed at $579.43.

Key Stories Impacting Applied Materials

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

• Positive Sentiment: Management recently reinforced the view that AI-related chip manufacturing spending could stay elevated for years, supporting Applied Materials’ multiyear growth outlook and keeping investor interest high. Applied Materials CEO Just Reinforced the AI Investment Thesis. How to Play AMAT Stock Here.
• Positive Sentiment: Recent commentary and analyst updates, including a higher price target from Mizuho, point to strong demand trends and expectations for EPS growth of more than 36% over the next year. Mizuho Raises PT on Applied Materials (AMAT)
• Positive Sentiment: Broader AI infrastructure enthusiasm continues to lift semiconductor equipment names, and AMAT has been one of the key beneficiaries of that trade. Applied Materials, KLA Corporation, and Teradyne Shares Skyrocket, What You Need To Know
• Neutral Sentiment: Some recent articles argue the stock’s strong multi-year rally has pushed valuation into a “fair value” or gray area, suggesting much of the good news may already be reflected in the price. Applied Materials (AMAT) Stock Looks Above Fair Value Even As Earnings Look About Right
• Neutral Sentiment: Articles comparing AMAT with peers and discussing whether it is the better AI infrastructure buy indicate investors are still debating the stock’s upside after its huge recent gains. Applied Materials Vs. KLA Corporation: This AI Infrastructure Play Is A Better Buy
• Negative Sentiment: With the stock up sharply over the past several months, some investors are becoming cautious that expectations and valuation may now be stretched, which can limit further near-term upside. 2 Reasons to Watch AMAT and 1 to Stay Cautious

Analyst Ratings Changes

Several equities analysts have recently issued reports on the stock. Weiss Ratings restated a “buy (b-)” rating on shares of Applied Materials in a report on Wednesday, June 24th. JPMorgan Chase & Co. upped their price target on shares of Applied Materials from $400.00 to $515.00 and gave the company an “overweight” rating in a research note on Friday, May 15th. Zacks Research raised shares of Applied Materials from a “hold” rating to a “strong-buy” rating in a report on Wednesday, July 1st. Deutsche Bank Aktiengesellschaft raised their price objective on Applied Materials from $450.00 to $550.00 and gave the stock a “buy” rating in a research note on Friday, May 15th. Finally, Susquehanna boosted their target price on shares of Applied Materials from $575.00 to $900.00 and gave the company a “positive” rating in a research report on Tuesday, June 30th. One analyst has rated the stock with a Strong Buy rating, twenty-seven have assigned a Buy rating and six have given a Hold rating to the company’s stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $593.84.

Applied Materials Stock Down 3.2%

The company has a current ratio of 2.51, a quick ratio of 1.80 and a debt-to-equity ratio of 0.22. The company has a market cap of $445.36 billion, a price-to-earnings ratio of 52.67, a PEG ratio of 1.51 and a beta of 1.57. The business has a fifty day moving average of $528.23 and a two-hundred day moving average of $410.12.

Applied Materials (NASDAQ:AMAT) last released its quarterly earnings results on Thursday, May 14th. The manufacturing equipment provider reported $2.86 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.68 by $0.18. Applied Materials had a net margin of 29.31% and a return on equity of 36.97%. The firm had revenue of $7.91 billion for the quarter, compared to analysts’ expectations of $7.68 billion. During the same quarter last year, the company earned $2.39 EPS. The firm’s revenue for the quarter was up 11.4% compared to the same quarter last year. Applied Materials has set its Q3 2026 guidance at 3.160-3.560 EPS. As a group, equities analysts anticipate that Applied Materials, Inc. will post 12.13 EPS for the current fiscal 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 paid a $0.53 dividend. The ex-dividend date of this dividend 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 currently 19.91%.

Insider Activity at Applied Materials

In other news, CEO Gary E. Dickerson sold 20,000 shares of the company’s 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 sale, the chief executive officer owned 1,599,843 shares of the company’s stock, valued at $1,176,236,570.46. This represents a 1.23% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Prabu G. Raja sold 10,000 shares of the company’s stock in a transaction dated 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 sale, the insider directly owned 346,642 shares of the company’s stock, valued at approximately $219,608,106.26. This represents a 2.80% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 278,088 shares of company stock worth $169,654,805 over the last 90 days. Corporate insiders own 0.30% of the company’s stock.

Institutional Trading of Applied Materials

Hedge funds and other institutional investors have recently made changes to their positions in the company. JFS Wealth Advisors LLC boosted its holdings in shares of Applied Materials by 4.3% in the 2nd quarter. JFS Wealth Advisors LLC now owns 409 shares of the manufacturing equipment provider’s stock valued at $296,000 after buying an additional 17 shares in the last quarter. Stonebridge Financial Group LLC raised its stake in Applied Materials by 2.1% during the 2nd quarter. Stonebridge Financial Group LLC now owns 1,003 shares of the manufacturing equipment provider’s stock worth $725,000 after acquiring an additional 21 shares in the last quarter. Basecamp Wealth Advisors LLC raised its stake in Applied Materials by 0.7% during the 1st quarter. Basecamp Wealth Advisors LLC now owns 3,288 shares of the manufacturing equipment provider’s stock worth $1,124,000 after acquiring an additional 22 shares in the last quarter. Financial Management Professionals Inc. lifted its position in Applied Materials by 2.2% in the second quarter. Financial Management Professionals Inc. now owns 1,040 shares of the manufacturing equipment provider’s stock valued at $752,000 after acquiring an additional 22 shares during the last quarter. Finally, Elevation Wealth Partners LLC lifted its position in Applied Materials by 34.8% in the second quarter. Elevation Wealth Partners LLC now owns 93 shares of the manufacturing equipment provider’s stock valued at $67,000 after acquiring an additional 24 shares during 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.