Applied Materials (NASDAQ:AMAT) Stock Price Down 2.3% Following Analyst Downgrade

Applied Materials, Inc. (NASDAQ:AMAT)’s stock price traded down 2.3% on Wednesday after Erste Group Bank downgraded the stock from a buy rating to a hold rating. The stock traded as low as $530.57 and last traded at $534.24. Approximately 5,051,443 shares traded hands during trading, a decline of 39% from the average session volume of 8,260,841 shares. The stock had previously closed at $546.62.

AMAT has been the topic of a number of other reports. Jefferies Financial Group boosted their price objective on shares of Applied Materials from $510.00 to $770.00 and gave the company a “buy” rating in a report on Friday, June 26th. Wells Fargo & Company increased their price objective on Applied Materials from $715.00 to $740.00 and gave the company an “overweight” rating in a report on Friday, June 26th. UBS Group raised their price objective on Applied Materials from $570.00 to $705.00 and gave the stock a “buy” rating in a research note on Wednesday, July 15th. HSBC reaffirmed a “buy” rating and set a $683.00 target price on shares of Applied Materials in a report on Monday, July 27th. Finally, JPMorgan Chase & Co. increased their price target on shares of Applied Materials from $400.00 to $515.00 and gave the stock an “overweight” rating in a report on Friday, May 15th. One analyst has rated the stock with a Strong Buy rating, twenty-six have issued a Buy rating and seven have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $603.23.

Insider Buying and Selling at Applied Materials

In other news, SVP Omkaram Nalamasu sold 24,263 shares of the business’s stock in a transaction dated 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 completion of the transaction, the senior vice president owned 146,916 shares of the company’s stock, valued at $87,184,361.88. The trade was a 14.17% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, CEO Gary E. Dickerson sold 71,727 shares of the company’s 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 in the company, valued at $1,006,503,625. The trade was a 4.06% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 278,088 shares of company stock worth $169,654,805. Insiders own 0.30% of the company’s stock.

Trending Headlines about Applied Materials

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

• Positive Sentiment: Semiconductor stocks and ETFs have recently rallied on strong AI demand, expectations for upcoming earnings and improving memory-market conditions. This sector momentum could support spending on Applied Materials’ equipment, services and software. Semiconductor Rally Powers S&P 500 to Fresh Record High
• Positive Sentiment: Wall Street’s average brokerage recommendation remains equivalent to a Buy, although the usefulness of consensus ratings may be limited because sell-side analysts can be slow to adjust their views. Applied Materials’ latest reported quarter also exceeded earnings and revenue expectations, with revenue increasing year over year. Wall Street Analysts See Applied Materials as a Buy
• Neutral Sentiment: Applied Materials recently outperformed the broader market in a trading session, reflecting continued investor interest in semiconductor-equipment companies, but the move does not by itself change the company’s fundamentals. Applied Materials Outperforms Broader Market
• Negative Sentiment: Michael Burry has reportedly shorted Applied Materials along with other large technology stocks and warned of a potential 1987-style market selloff. The high-profile bearish call is increasing scrutiny of AMAT and may encourage profit-taking in richly valued chip stocks, even though Burry’s views are not a company-specific earnings forecast. Applied Materials Faces Fresh Scrutiny After Michael Burry Short Bet
• Negative Sentiment: Erste Group Bank AG downgraded Applied Materials from “Buy” to “Hold,” adding a more cautious institutional view and countering the broader analyst consensus. Finviz rating report

Hedge Funds Weigh In On Applied Materials

Several large investors have recently made changes to their positions in AMAT. Vanguard Group Inc. raised its position 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 worth $19,731,523,000 after acquiring an additional 330,197 shares during the period. Capital Research Global Investors increased its stake in shares of Applied Materials by 119.8% in the 4th 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 purchasing an additional 17,829,377 shares in the last quarter. Morgan Stanley increased its stake in shares of Applied Materials by 3.4% in the 4th quarter. Morgan Stanley now owns 11,470,835 shares of the manufacturing equipment provider’s stock valued at $2,947,891,000 after purchasing an additional 373,012 shares in the last quarter. Norges Bank acquired a new position in Applied Materials in the 4th quarter worth about $2,858,543,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its holdings in Applied Materials by 17.1% in 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 purchasing an additional 1,558,749 shares during the period. 80.56% of the stock is currently owned by institutional investors and hedge funds.

Applied Materials Stock Down 2.3%

The company has a market cap of $424.17 billion, a PE ratio of 50.16, a P/E/G ratio of 1.32 and a beta of 1.61. The business has a 50-day simple moving average of $554.42 and a 200-day simple moving average of $434.07. 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 posted its quarterly earnings data on Thursday, May 14th. The manufacturing equipment provider reported $2.86 EPS for the quarter, beating analysts’ consensus estimates of $2.68 by $0.18. The business had revenue of $7.91 billion during the quarter, compared to analysts’ expectations of $7.68 billion. Applied Materials had a return on equity of 36.97% and a net margin of 29.31%.The business’s revenue was up 11.4% compared to the same quarter last year. During the same period in the previous year, the business earned $2.39 earnings per share. Applied Materials has set its Q3 2026 guidance at 3.160-3.560 EPS. Equities research analysts anticipate that Applied Materials, Inc. will post 12.14 EPS for the current year.

Applied Materials Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Thursday, August 20th will be issued 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 presently 19.91%.

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.