Applied Materials (NASDAQ:AMAT) Shares Down 4.7% – Should You Sell?

Applied Materials, Inc. (NASDAQ:AMAT) shares traded down 4.7% during mid-day trading on Friday . The company traded as low as $530.01 and last traded at $536.25. Approximately 6,057,719 shares traded hands during mid-day trading, a decline of 27% from the average session volume of 8,254,339 shares. The stock had previously closed at $562.80.

Key Headlines Impacting Applied Materials

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

• Positive Sentiment: Applied Materials was highlighted as a safer bet than a peer in advanced packaging thanks to its AI-related packaging exposure, broad chipmaking portfolio, and high-margin services business. AMAT vs. Q: Which Advanced Packaging Stock is a Safer Bet Right Now?
• Positive Sentiment: Analysts expect Applied Materials to post double-digit earnings growth in its next quarterly report, which could support sentiment heading into the August release. What to Expect From Applied Materials’ Next Quarterly Earnings Report
• Positive Sentiment: Broader AI enthusiasm continues to drive semiconductor demand, keeping AMAT on investors’ radar as a beneficiary of ongoing chip-industry capital spending. AI Optimism Powers Semiconductor Demand: 3 Solid Funds to Buy
• Positive Sentiment: Applied Materials announced it will report fiscal third-quarter 2026 results on Aug. 13, keeping attention on the company’s near-term fundamentals and guidance. Applied Materials to Report Fiscal Third Quarter 2026 Results on Aug. 13, 2026
• Neutral Sentiment: Coverage comparing AMAT with other semiconductor names and citing the broader AI infrastructure buildout reinforces the stock’s place in the sector, but does not introduce a new company-specific catalyst. Billionaire Investor Philippe Laffont’s Top 5 Tech Picks

Wall Street Analyst Weigh In

A number of analysts have recently commented on AMAT shares. Seaport Research Partners began coverage on shares of Applied Materials in a report on Monday, May 4th. They set a “buy” rating and a $500.00 target price on the stock. Cantor Fitzgerald lifted their price target on shares of Applied Materials from $650.00 to $850.00 and gave the company an “overweight” rating in a research report on Monday, June 29th. Deutsche Bank Aktiengesellschaft boosted their price objective on shares of Applied Materials from $450.00 to $550.00 and gave the stock a “buy” rating in a research note on Friday, May 15th. Zacks Research upgraded shares of Applied Materials from a “hold” rating to a “strong-buy” rating in a report on Wednesday, July 1st. Finally, Argus raised their target price on shares of Applied Materials from $420.00 to $500.00 and gave the company a “buy” rating in a research note on Tuesday, May 19th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-seven have given a Buy rating and six have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, Applied Materials presently has an average rating of “Moderate Buy” and a consensus target price of $593.84.

Applied Materials Trading Down 4.7%

The firm’s 50 day moving average price is $542.22 and its 200-day moving average price is $422.30. The stock has a market cap of $425.76 billion, a P/E ratio of 50.35, a P/E/G ratio of 1.41 and a beta of 1.57. The company has a debt-to-equity ratio of 0.22, a current ratio of 2.51 and a quick ratio of 1.80.

Applied Materials (NASDAQ:AMAT) last announced its quarterly earnings results on Thursday, May 14th. The manufacturing equipment provider reported $2.86 earnings per share for the quarter, beating the consensus estimate of $2.68 by $0.18. The company had revenue of $7.91 billion during the quarter, compared to the consensus estimate of $7.68 billion. Applied Materials had a net margin of 29.31% and a return on equity of 36.97%. The firm’s quarterly revenue was up 11.4% compared to the same quarter last year. During the same quarter last year, the firm earned $2.39 earnings per share. Applied Materials has set its Q3 2026 guidance at 3.160-3.560 EPS. As a group, equities research analysts forecast that Applied Materials, Inc. will post 12.14 earnings per share for the current year.

Applied Materials Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Thursday, August 20th will be issued 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 dividend payout ratio (DPR) is presently 19.91%.

Insider Transactions at Applied Materials

In related news, Director Thomas J. Iannotti sold 9,250 shares of the stock in a transaction on Tuesday, June 16th. The stock was sold at an average price of $599.77, for a total transaction of $5,547,872.50. Following the sale, the director directly owned 40,559 shares of the company’s stock, valued at $24,326,071.43. This trade represents a 18.57% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, CEO Gary E. Dickerson sold 71,727 shares of Applied Materials stock in a transaction dated Tuesday, June 16th. The stock was sold at an average price of $593.75, for a total value of $42,587,906.25. Following the completion of the sale, the chief executive officer owned 1,695,164 shares of the company’s stock, valued at $1,006,503,625. The trade was a 4.06% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 278,088 shares of company stock valued at $169,654,805. Insiders own 0.30% of the company’s stock.

Institutional Trading of Applied Materials

A number of institutional investors have recently made changes to their positions in AMAT. JFS Wealth Advisors LLC raised its holdings in shares of Applied Materials by 4.3% during the second quarter. JFS Wealth Advisors LLC now owns 409 shares of the manufacturing equipment provider’s stock valued at $296,000 after purchasing an additional 17 shares during the last quarter. Stonebridge Financial Group LLC boosted its holdings in Applied Materials by 2.1% in the second quarter. Stonebridge Financial Group LLC now owns 1,003 shares of the manufacturing equipment provider’s stock worth $725,000 after purchasing an additional 21 shares during the last quarter. Basecamp Wealth Advisors LLC boosted its holdings in Applied Materials by 0.7% in the first quarter. Basecamp Wealth Advisors LLC now owns 3,288 shares of the manufacturing equipment provider’s stock worth $1,124,000 after purchasing an additional 22 shares during the last quarter. Financial Management Professionals Inc. grew its position in Applied Materials by 2.2% in the 2nd quarter. Financial Management Professionals Inc. now owns 1,040 shares of the manufacturing equipment provider’s stock worth $752,000 after purchasing an additional 22 shares during the period. Finally, Elevation Wealth Partners LLC grew its position in Applied Materials by 34.8% in the 2nd quarter. Elevation Wealth Partners LLC now owns 93 shares of the manufacturing equipment provider’s stock worth $67,000 after purchasing an additional 24 shares during the period. Hedge funds and other institutional investors own 80.56% of the company’s stock.

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.