Applied Materials (NASDAQ:AMAT) Shares Down 13.6% – Here’s What Happened

Applied Materials, Inc. (NASDAQ:AMAT)’s stock price was down 13.6% during mid-day trading on Thursday. The company traded as low as $316.95 and last traded at $319.25. Approximately 16,899,644 shares changed hands during trading, an increase of 114% from the average session volume of 7,891,003 shares. The stock had previously closed at $369.40.

More Applied Materials News

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

• Positive Sentiment: AI-driven equipment demand and growth in advanced packaging are cited as longer-term tailwinds for Applied Materials, offering support amid the sector downturn. AMAT Shares Plunge 30% in a Month: Should You Buy, Sell or Hold?
• Positive Sentiment: Institutional buying offered a counterpoint to the sell-off: ETFs reportedly purchased $237 million of AMAT, while Capital Group Dividend Value added $146.3 million. These flows indicate demand from some investors, though they do not guarantee a recovery. ETFs Bought $237.0 Million of Applied Materials Capital Group Dividend Value Buys More AMAT
• Neutral Sentiment: Upcoming quarterly results are a key test, with investors watching whether the company’s chip-equipment outlook can hold up in a tougher investment environment; one report framed the revenue figure to watch at $10.25 billion. Applied Materials Stocks Fall Before a Revenue Test
• Negative Sentiment: The immediate pressure is a broader chip-stock rout, with investors concerned that data-center spending could slow. Weak guidance from Qualcomm added to the worries, dragging down semiconductor-equipment peers alongside AMAT. Chip Stock Rout Deepens

Analysts Set New Price Targets

Several brokerages recently issued reports on AMAT. New Street Research dropped their target price on shares of Applied Materials from $580.00 to $525.00 and set a “neutral” rating on the stock in a report on Friday, August 14th. HSBC lowered their price target on Applied Materials from $683.00 to $641.00 and set a “buy” rating on the stock in a report on Friday, August 14th. Cantor Fitzgerald reissued an “overweight” rating on shares of Applied Materials in a report on Tuesday, October 20th. Zacks Research downgraded Applied Materials from a “strong-buy” rating to a “hold” rating in a research note on Thursday, October 15th. Finally, William Blair initiated coverage on Applied Materials in a report on Tuesday, August 11th. They issued a “market perform” rating for the company. Thirty analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the company. Based on data from MarketBeat, Applied Materials has a consensus rating of “Moderate Buy” and an average price target of $632.01.

Applied Materials Stock Performance

The firm’s 50 day simple moving average is $451.05 and its 200 day simple moving average is $444.63. The firm has a market cap of $253.36 billion, a PE ratio of 27.52, a PEG ratio of 0.74 and a beta of 1.67. The company has a current ratio of 2.42, a quick ratio of 1.79 and a debt-to-equity ratio of 0.20.

Applied Materials (NASDAQ:AMAT) last released its quarterly earnings results on Thursday, August 13th. The manufacturing equipment provider reported $3.50 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $3.40 by $0.10. Applied Materials had a net margin of 30.05% and a return on equity of 38.02%. The company had revenue of $9.12 billion for the quarter, compared to the consensus estimate of $8.99 billion. During the same quarter in the prior year, the firm earned $2.48 earnings per share. Applied Materials’s revenue 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, research analysts forecast that Applied Materials, Inc. will post 12.79 EPS for the current fiscal year.

Applied Materials Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, December 10th. Shareholders 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 0.7%. The ex-dividend date is Thursday, November 19th. Applied Materials’s dividend payout ratio is currently 18.28%.

Insider Activity

In other news, CAO Adam Sanders sold 725 shares of the business’s stock in a transaction on Friday, October 2nd. The stock was sold at an average price of $544.56, for a total value of $394,806.00. Following the completion of the transaction, the chief accounting officer directly owned 3,181 shares of the company’s stock, valued at approximately $1,732,245.36. The trade was a 18.56% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Judy Bruner sold 1,000 shares of Applied Materials stock in a transaction that occurred on Tuesday, September 8th. The stock was sold at an average price of $465.00, for a total transaction of $465,000.00. Following the completion of the transaction, the director directly owned 25,544 shares in the company, valued at approximately $11,877,960. The trade was a 3.77% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 9,225 shares of company stock worth $4,454,181. 0.30% of the stock is currently owned by corporate insiders.

Institutional Trading of Applied Materials

Hedge funds and other institutional investors have recently made changes to their positions in the business. Silver Grove Financial Group Inc. boosted its stake in shares of Applied Materials by 14.7% during the 3rd quarter. Silver Grove Financial Group Inc. now owns 1,114 shares of the manufacturing equipment provider’s stock worth $570,000 after acquiring an additional 143 shares in the last quarter. Davis Investment Partners LLC increased its position in shares of Applied Materials by 145.1% during the third quarter. Davis Investment Partners LLC now owns 745 shares of the manufacturing equipment provider’s stock worth $381,000 after purchasing an additional 441 shares in the last quarter. Knights of Columbus Asset Advisors LLC grew its holdings in shares of Applied Materials by 9.0% during the third quarter. Knights of Columbus Asset Advisors LLC now owns 6,739 shares of the manufacturing equipment provider’s stock worth $3,446,000 after buying an additional 558 shares in the last quarter. AMG National Trust Bank boosted its position in Applied Materials by 5.4% during the third quarter. AMG National Trust Bank now owns 2,297 shares of the manufacturing equipment provider’s stock worth $1,175,000 after acquiring an additional 118 shares during the last quarter. Finally, Mesirow Financial Investment Management Inc. grew its stake in Applied Materials by 78.0% during the 3rd quarter. Mesirow Financial Investment Management Inc. now owns 3,039 shares of the manufacturing equipment provider’s stock valued at $1,554,000 after acquiring an additional 1,332 shares in the last quarter. Institutional investors and hedge funds own 80.56% of the company’s stock.

About Applied Materials

Applied Materials, Inc is a technology company that supplies equipment, services and software used to manufacture semiconductors and advanced displays. Its products help customers fabricate the integrated circuits and other components used in computers, mobile devices, data centers, automobiles and a range of connected technologies.

The company’s offerings include systems for materials engineering, wafer fabrication, inspection and process control, along with equipment and services designed to improve manufacturing productivity and yield.