Applied Materials (NASDAQ:AMAT) Stock Price Down 3.2% – Time to Sell?

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

Key Applied Materials News

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

Wall Street Analysts Forecast Growth

A number of research analysts recently issued reports on AMAT shares. Deutsche Bank Aktiengesellschaft raised their price target on Applied Materials from $450.00 to $550.00 and gave the stock a “buy” rating in a research note on Friday, May 15th. Royal Bank Of Canada boosted their price objective on Applied Materials from $500.00 to $520.00 and gave the company an “outperform” rating in a research note on Friday, May 15th. TD Cowen raised their target price on shares of Applied Materials from $525.00 to $700.00 and gave the stock a “buy” rating in a research report on Thursday, July 9th. Wall Street Zen raised shares of Applied Materials from a “hold” rating to a “buy” rating in a report on Saturday, May 23rd. Finally, Susquehanna upped their price target 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 investment analyst has rated the stock with a Strong Buy rating, twenty-seven have assigned a Buy rating and six have issued a Hold rating to the company. Based on data from MarketBeat, Applied Materials currently has an average rating of “Moderate Buy” and a consensus price target of $593.84.

Applied Materials Trading Down 3.2%

The company has a 50 day simple moving average of $528.23 and a 200 day simple moving average of $410.12. 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 stock has a market capitalization of $445.36 billion, a PE ratio of 52.67, a P/E/G ratio of 1.51 and a beta of 1.57.

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

Applied Materials Announces Dividend

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

Insider Activity at Applied Materials

In other news, insider Prabu G. Raja sold 50,000 shares of the firm’s stock in a transaction on Thursday, June 4th. The shares were sold at an average price of $505.28, for a total value of $25,264,000.00. Following the completion of the sale, the insider owned 356,642 shares in the company, valued at approximately $180,204,069.76. This trade represents a 12.30% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Gary E. Dickerson sold 71,727 shares of Applied Materials stock in a transaction dated Tuesday, June 16th. The shares were 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 directly owned 1,695,164 shares in the company, valued at approximately $1,006,503,625. The trade was a 4.06% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 278,088 shares of company stock worth $169,654,805 in the last 90 days. Corporate insiders own 0.30% of the company’s stock.

Hedge Funds Weigh In On Applied Materials

A number of large investors have recently modified their holdings of AMAT. Vanguard Group Inc. lifted its stake in shares of Applied Materials by 0.4% in the fourth quarter. Vanguard Group Inc. now owns 76,779,340 shares of the manufacturing equipment provider’s stock valued at $19,731,523,000 after purchasing an additional 330,197 shares during the period. Capital Research Global Investors increased its holdings in Applied Materials by 119.8% in the fourth quarter. Capital Research Global Investors now owns 32,707,049 shares of the manufacturing equipment provider’s stock valued at $8,405,458,000 after buying an additional 17,829,377 shares in the last quarter. Morgan Stanley increased its holdings in Applied Materials by 3.4% in the fourth quarter. Morgan Stanley now owns 11,470,835 shares of the manufacturing equipment provider’s stock valued at $2,947,891,000 after buying an additional 373,012 shares in the last quarter. Norges Bank acquired a new stake in shares of Applied Materials during the 4th quarter valued at approximately $2,858,543,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its stake in shares of Applied Materials by 17.1% during the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 10,688,232 shares of the manufacturing equipment provider’s stock worth $2,746,769,000 after acquiring an additional 1,558,749 shares in the last quarter. 80.56% of the stock is owned by hedge funds and other institutional investors.

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.