Applied Materials (NASDAQ:AMAT) Shares Down 2.7% – Should You Sell?

Applied Materials, Inc. (NASDAQ:AMAT)’s stock price traded down 2.7% during trading on Wednesday . The stock traded as low as $557.16 and last traded at $579.43. Approximately 8,150,216 shares changed hands during trading, a decline of 2% from the average daily volume of 8,328,078 shares. The stock had previously closed at $595.70.

More Applied Materials News

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

• Positive Sentiment: Applied Materials’ CEO reinforced the company’s AI investment thesis, suggesting semiconductor spending tied to AI could stay elevated for years and supporting a multiyear growth outlook. Applied Materials CEO Just Reinforced the AI Investment Thesis. How to Play AMAT Stock Here.
• Positive Sentiment: Mizuho reportedly raised its price target on AMAT, reflecting continued confidence in demand trends and analyst expectations for strong EPS growth over the next year. Mizuho Raises PT on Applied Materials (AMAT)
• Positive Sentiment: Applied Materials landed a 10-year TSMC AI packaging partnership, a potentially meaningful long-term win that strengthens its role in advanced chip manufacturing. Applied Materials (AMAT) Lands 10 Year TSMC AI Packaging Partnership
• Positive Sentiment: Additional commentary framed AMAT as a “picks-and-shovels” AI play, with more articles citing strong demand, expanding AI infrastructure, and favorable sector momentum. Applied Materials: The Picks-and-Shovels Play in an AI Era Will Continue to Trend Higher
• Neutral Sentiment: Some coverage notes that the stock has already rallied sharply over the past six months, which could make investors more cautious about valuation and near-term upside after a big run. 2 Reasons to Watch AMAT and 1 to Stay Cautious
• Neutral Sentiment: Brokerage commentary was mixed, with Morgan Stanley maintaining an Equal Weight rating even as other firms turned more constructive. Morgan Stanley Maintains an “Equal Weight” Rating on Applied Materials, Inc. (AMAT)
• Negative Sentiment: Recent headlines also show a prior pullback after a strong run, reminding investors that AMAT can be volatile if sentiment shifts or expectations become too stretched. Applied Materials (AMAT) Declines More Than Market: Some Information for Investors

Analyst Upgrades and Downgrades

Several analysts recently issued reports on the company. UBS Group raised their price target on Applied Materials from $570.00 to $705.00 and gave the stock a “buy” rating in a report on Wednesday. Wells Fargo & Company increased their target price on Applied Materials from $715.00 to $740.00 and gave the stock an “overweight” rating in a research report on Friday, June 26th. HC Wainwright set a $850.00 target price on Applied Materials in a research note on Monday, June 29th. JPMorgan Chase & Co. boosted their price target on shares of Applied Materials from $400.00 to $515.00 and gave the company an “overweight” rating in a report on Friday, May 15th. Finally, Royal Bank Of Canada upped their price target on shares of Applied Materials from $500.00 to $520.00 and gave the stock an “outperform” rating in a research report on Friday, May 15th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-seven have given a Buy rating and six have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $593.84.

Applied Materials Stock Down 2.7%

The firm has a market cap of $460.04 billion, a price-to-earnings ratio of 54.41, a price-to-earnings-growth ratio of 1.46 and a beta of 1.57. The stock’s 50 day moving average is $525.21 and its 200 day moving average is $407.88. The company has a quick ratio of 1.80, a current ratio of 2.51 and a debt-to-equity ratio of 0.22.

Applied Materials (NASDAQ:AMAT) last announced its quarterly earnings data 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. Applied Materials had a return on equity of 36.97% and a net margin of 29.31%.The business had revenue of $7.91 billion during the quarter, compared to analyst estimates of $7.68 billion. During the same quarter in the prior year, the firm posted $2.39 earnings per share. The company’s revenue was up 11.4% on a year-over-year basis. Applied Materials has set its Q3 2026 guidance at 3.160-3.560 EPS. Analysts forecast that Applied Materials, Inc. will post 12.13 EPS for the current year.

Applied Materials Announces Dividend

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

Insider Buying and Selling

In other news, CEO Gary E. Dickerson sold 71,727 shares of the stock in a transaction on Tuesday, June 16th. The stock was sold at an average price of $593.75, for a total transaction of $42,587,906.25. Following the completion of the sale, the chief executive officer owned 1,695,164 shares in the company, valued at approximately $1,006,503,625. This represents a 4.06% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, SVP Omkaram Nalamasu sold 24,263 shares of the firm’s stock in a transaction on Tuesday, June 16th. The stock was sold at an average price of $593.43, for a total value of $14,398,392.09. Following the sale, the senior vice president directly owned 146,916 shares of the company’s stock, valued at approximately $87,184,361.88. This represents a 14.17% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 278,088 shares of company stock valued at $169,654,805 in the last three months. Insiders own 0.30% of the company’s stock.

Hedge Funds Weigh In On Applied Materials

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Financial Freedom LLC purchased a new position in shares of Applied Materials in the first quarter worth approximately $28,000. Elevation Wealth Partners LLC lifted its position in shares of Applied Materials by 34.8% in the 2nd 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 in the last quarter. Cornerstone Financial Management LLC acquired a new position in Applied Materials in the 4th quarter worth approximately $25,000. Whipplewood Advisors LLC grew its position in Applied Materials by 218.8% during the 1st quarter. Whipplewood Advisors LLC now owns 102 shares of the manufacturing equipment provider’s stock worth $35,000 after purchasing an additional 70 shares in the last quarter. Finally, Wilkerson Advisory Group LLC purchased a new position in shares of Applied Materials during the fourth quarter valued at $26,000. 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.