Applied Materials (NASDAQ:AMAT) Shares Down 1.5% – Should You Sell?

Shares of Applied Materials, Inc. (NASDAQ:AMAT) dropped 1.5% during mid-day trading on Friday . The company traded as low as $223.38 and last traded at $230.07. Approximately 6,885,805 shares changed hands during trading, a decline of 9% from the average daily volume of 7,600,119 shares. The stock had previously closed at $233.53.

Analyst Upgrades and Downgrades

A number of equities research analysts recently weighed in on the company. UBS Group lowered their price target on Applied Materials from $185.00 to $180.00 and set a “neutral” rating on the stock in a report on Friday, August 15th. Daiwa Capital Markets reiterated a “neutral” rating and set a $170.00 target price (down from $185.00) on shares of Applied Materials in a research report on Wednesday, August 20th. Wells Fargo & Company upped their target price on Applied Materials from $240.00 to $250.00 and gave the company an “overweight” rating in a report on Wednesday, October 8th. Morgan Stanley reaffirmed an “overweight” rating and set a $256.00 price target on shares of Applied Materials in a research note on Friday, October 31st. Finally, Cfra Research upgraded shares of Applied Materials to a “hold” rating in a research report on Friday, August 15th. Eighteen analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $210.96.

Applied Materials Price Performance

The company has a 50 day moving average of $203.93 and a 200 day moving average of $183.30. The stock has a market capitalization of $183.28 billion, a price-to-earnings ratio of 27.42, a price-to-earnings-growth ratio of 2.95 and a beta of 1.84. The company has a quick ratio of 1.76, a current ratio of 2.50 and a debt-to-equity ratio of 0.28.

Applied Materials (NASDAQ:AMAT) last issued its quarterly earnings results on Thursday, August 14th. The manufacturing equipment provider reported $2.48 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.36 by $0.12. Applied Materials had a return on equity of 40.96% and a net margin of 23.88%.The firm had revenue of $7.30 billion for the quarter, compared to analyst estimates of $7.21 billion. During the same period last year, the company earned $2.12 EPS. The firm’s quarterly revenue was up 7.7% on a year-over-year basis. Applied Materials has set its Q4 2025 guidance at 1.910-2.310 EPS. As a group, equities research analysts forecast that Applied Materials, Inc. will post 9.38 EPS for the current fiscal year.

Applied Materials Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, December 11th. Investors of record on Thursday, November 20th will be issued a $0.46 dividend. This represents a $1.84 dividend on an annualized basis and a yield of 0.8%. The ex-dividend date is Thursday, November 20th. Applied Materials’s payout ratio is presently 21.93%.

Institutional Trading of Applied Materials

Several institutional investors have recently made changes to their positions in the stock. Brighton Jones LLC raised its holdings in Applied Materials by 28.0% in the fourth quarter. Brighton Jones LLC now owns 12,674 shares of the manufacturing equipment provider’s stock valued at $2,061,000 after buying an additional 2,771 shares during the period. Brown Advisory Inc. increased its position in shares of Applied Materials by 19.4% in the first quarter. Brown Advisory Inc. now owns 94,619 shares of the manufacturing equipment provider’s stock worth $13,731,000 after acquiring an additional 15,377 shares in the last quarter. Rehmann Capital Advisory Group raised its stake in shares of Applied Materials by 22.6% in the 1st quarter. Rehmann Capital Advisory Group now owns 7,792 shares of the manufacturing equipment provider’s stock valued at $1,131,000 after acquiring an additional 1,436 shares during the period. Axxcess Wealth Management LLC lifted its holdings in shares of Applied Materials by 5.6% during the 1st quarter. Axxcess Wealth Management LLC now owns 26,552 shares of the manufacturing equipment provider’s stock valued at $3,853,000 after acquiring an additional 1,410 shares in the last quarter. Finally, Moloney Securities Asset Management LLC lifted its holdings in shares of Applied Materials by 9.4% during the 1st quarter. Moloney Securities Asset Management LLC now owns 2,078 shares of the manufacturing equipment provider’s stock valued at $302,000 after acquiring an additional 178 shares in the last quarter. 80.56% of the stock is owned by hedge funds and other institutional investors.

About Applied Materials

Applied Materials, Inc engages in the provision of manufacturing equipment, services, and software to the semiconductor, display, and related industries. The company operates through three segments: Semiconductor Systems, Applied Global Services, and Display and Adjacent Markets. The Semiconductor Systems segment develops, manufactures, and sells various manufacturing equipment that is used to fabricate semiconductor chips or integrated circuits.