Applied Materials (NASDAQ:AMAT) Shares Down 7.1% – Should You Sell?

Applied Materials, Inc. (NASDAQ:AMAT) was down 7.1% during trading on Monday . The stock traded as low as $419.60 and last traded at $424.21. 7,887,686 shares changed hands during mid-day trading, a decline of 2% from the average daily volume of 8,053,704 shares. The stock had previously closed at $456.49.

Analyst Upgrades and Downgrades

Several equities analysts have recently weighed in on AMAT shares. Bank of America decreased their price target on shares of Applied Materials from $720.00 to $650.00 and set a “buy” rating for the company in a research note on Friday, August 14th. Cantor Fitzgerald reiterated an “overweight” rating on shares of Applied Materials in a research note on Friday, August 14th. TD Cowen restated a “buy” rating and set a $700.00 price objective on shares of Applied Materials in a research note on Friday, August 14th. JPMorgan Chase & Co. upped their target price on Applied Materials from $515.00 to $660.00 and gave the stock an “overweight” rating in a report on Friday, August 14th. Finally, Jefferies Financial Group upped their price objective on Applied Materials from $510.00 to $770.00 and gave the stock a “buy” rating in a research note on Friday, June 26th. One analyst has rated the stock with a Strong Buy rating, twenty-seven have issued a Buy rating and five have given a Hold rating to the company. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $658.45.

Applied Materials Trading Down 0.7%

The company has a market cap of $334.24 billion, a P/E ratio of 36.31, a PEG ratio of 1.18 and a beta of 1.60. The business has a fifty day moving average price of $507.85 and a 200-day moving average price of $465.08. The company has a quick ratio of 1.79, a current ratio of 2.42 and a debt-to-equity ratio of 0.20.

Applied Materials (NASDAQ:AMAT) last announced its earnings results on Thursday, August 13th. The manufacturing equipment provider reported $3.50 earnings per share for the quarter, topping analysts’ consensus estimates of $3.40 by $0.10. The company had revenue of $9.12 billion for the quarter, compared to analyst estimates of $8.99 billion. Applied Materials had a return on equity of 38.02% and a net margin of 30.05%.The firm’s quarterly revenue was up 24.8% compared to the same quarter last year. During the same quarter 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 12.76 earnings per share for the current year.

Applied Materials Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Thursday, November 19th will be issued a dividend of $0.53 per share. The ex-dividend date of this dividend is Thursday, November 19th. This represents a $2.12 dividend on an annualized basis and a dividend yield of 0.5%. Applied Materials’s dividend payout ratio (DPR) is currently 18.28%.

Insider Buying and Selling at Applied Materials

In other news, Director Judy Bruner sold 1,000 shares of the firm’s stock in a transaction that occurred on Tuesday, September 8th. The shares were sold at an average price of $465.00, for a total transaction of $465,000.00. Following the transaction, the director directly owned 25,544 shares of the company’s stock, valued at approximately $11,877,960. This trade represents a 3.77% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Prabu Raja sold 10,000 shares of the business’s stock in a transaction that occurred on Thursday, June 18th. The shares were sold at an average price of $633.53, for a total value of $6,335,300.00. Following the completion of the sale, the insider owned 346,642 shares of the company’s stock, valued at approximately $219,608,106.26. This trade represents a 2.80% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders have sold 96,821 shares of company stock valued at $65,944,771. 0.30% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Applied Materials

Several institutional investors and hedge funds have recently bought and sold shares of AMAT. Reynders McVeigh Capital Management LLC lifted its holdings in Applied Materials by 8.2% during the second quarter. Reynders McVeigh Capital Management LLC now owns 105,987 shares of the manufacturing equipment provider’s stock valued at $76,629,000 after purchasing an additional 8,073 shares during the last quarter. Smith Chas P & Associates PA Cpas bought a new stake in shares of Applied Materials in the second quarter valued at approximately $346,000. ABS Direct Equity Fund LLC lifted its stake in shares of Applied Materials by 106.6% during the 2nd quarter. ABS Direct Equity Fund LLC now owns 1,446 shares of the manufacturing equipment provider’s stock valued at $1,045,000 after buying an additional 746 shares in the last quarter. Bouchey Financial Group Ltd. boosted its holdings in Applied Materials by 25.3% in the 2nd quarter. Bouchey Financial Group Ltd. now owns 1,086 shares of the manufacturing equipment provider’s stock worth $785,000 after buying an additional 219 shares during the period. Finally, Miramontes Capital LLC purchased a new position in Applied Materials in the 2nd quarter valued at approximately $238,000. Institutional investors own 80.56% of the company’s stock.

Applied Materials Company Profile

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.