Applied Materials (NASDAQ:AMAT) Stock Price Down 3% – What’s Next?

Applied Materials, Inc. (NASDAQ:AMAT)’s share price fell 3% during mid-day trading on Tuesday . The company traded as low as $567.65 and last traded at $568.23. Approximately 10,553,746 shares were traded during mid-day trading, an increase of 39% from the average session volume of 7,583,215 shares. The stock had previously closed at $585.78.

Key Applied Materials News

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

• Positive Sentiment: Citi raised its price target on Applied Materials, reinforcing confidence that AI-driven chip spending and memory-equipment demand can support further upside. Applied Materials surges as Citi lifts target on AI demand boom
• Positive Sentiment: Applied Materials unveiled SENZ, an integrated visual system for AI smart glasses, and partnered with EssilorLuxottica and Qualcomm, suggesting a new growth avenue in AI eyewear and optics. Applied Materials (AMAT) Launches SENZ With Qualcomm And EssilorLuxottica For AI Eyewear
• Positive Sentiment: Recent commentary highlighted strong fundamentals, record results, and optimism that AMAT is well positioned for the AI equipment super-cycle, which is helping sentiment around the stock. Applied Materials: The Cheapest Seat On The AI Equipment Super-Cycle
• Neutral Sentiment: Several insiders, including the CEO and senior executives, sold shares worth roughly $65 million, which may create some near-term caution but does not by itself change the company’s operating outlook. Why Applied Materials Insiders Sold $65 Million Worth of Stock
• Negative Sentiment: Heavy insider selling, including a large sale by CEO Gary Dickerson, could temper enthusiasm if investors view it as a sign the stock has run too far ahead of fundamentals. Timothy Deane Sells 8,621 Shares of Applied Materials (NASDAQ:AMAT) Stock

Wall Street Analysts Forecast Growth

A number of research firms have weighed in on AMAT. Citigroup raised their price objective on shares of Applied Materials from $550.00 to $710.00 and gave the company a “buy” rating in a research note on Wednesday. HSBC began coverage on shares of Applied Materials in a research note on Friday, May 8th. They issued a “buy” rating and a $517.00 target price on the stock. Morgan Stanley reissued an “equal weight” rating and set a $502.00 price target (up from $454.00) on shares of Applied Materials in a research report on Friday, May 15th. Susquehanna boosted their price objective on shares of Applied Materials from $435.00 to $500.00 and gave the stock a “positive” rating in a report on Thursday, April 9th. Finally, Wells Fargo & Company upped their price objective on Applied Materials from $435.00 to $520.00 and gave the company an “overweight” rating in a research report on Friday, May 15th. Twenty-seven equities research analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $489.16.

Applied Materials Price Performance

The stock has a market capitalization of $489.96 billion, a PE ratio of 57.94, a PEG ratio of 1.58 and a beta of 1.67. The firm’s fifty day moving average price is $441.16 and its two-hundred day moving average price is $360.55. 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 issued its earnings results on Thursday, May 14th. The manufacturing equipment provider reported $2.86 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.68 by $0.18. The company had revenue of $7.91 billion for the quarter, compared to analysts’ expectations 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% on a year-over-year basis. During the same quarter last year, the company posted $2.39 earnings per share. Applied Materials has set its Q3 2026 guidance at 3.160-3.560 EPS. On average, equities analysts predict that Applied Materials, Inc. will post 12.1 earnings per share for the current year.

Applied Materials Announces Dividend

The company also recently disclosed 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. The ex-dividend date of this dividend is Thursday, August 20th. This represents a $2.12 annualized dividend and a dividend yield of 0.3%. Applied Materials’s payout ratio is presently 19.91%.

Insider Buying and Selling

In other Applied Materials news, SVP Omkaram Nalamasu sold 24,263 shares of the firm’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 transaction, the senior vice president directly owned 146,916 shares of the company’s stock, valued at approximately $87,184,361.88. This trade represents a 14.17% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, SVP Timothy M. Deane sold 8,621 shares of the business’s stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $590.76, for a total value of $5,092,941.96. Following the sale, the senior vice president owned 134,631 shares of the company’s stock, valued at approximately $79,534,609.56. This represents a 6.02% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 189,767 shares of company stock valued at $107,769,409 over the last ninety days. 0.30% of the stock is owned by insiders.

Hedge Funds Weigh In On Applied Materials

Institutional investors have recently made changes to their positions in the business. Militia Capital Management LLC bought a new stake in Applied Materials during the first quarter valued at approximately $295,000. Pine Valley Investments Ltd Liability Co increased its holdings in Applied Materials by 10.9% during the first quarter. Pine Valley Investments Ltd Liability Co now owns 29,297 shares of the manufacturing equipment provider’s stock valued at $10,013,000 after buying an additional 2,890 shares during the last quarter. First Nebraska Trust Co bought a new position in Applied Materials in the first quarter worth approximately $29,488,000. Foguth Wealth Management LLC. bought a new position in Applied Materials in the first quarter worth approximately $234,000. Finally, Financial Solutions Advisory Group Inc. purchased a new position in shares of Applied Materials during the 1st quarter worth $885,000. 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.