Applied Materials (NASDAQ:AMAT) Stock Dropped to “Hold” by Zacks Research

Zacks Research downgraded shares of Applied Materials (NASDAQ:AMAT) from a strong-buy rating to a hold rating in a research note released on Thursday morning,Zacks reports.

A number of other research firms have also commented on AMAT. Cantor Fitzgerald reaffirmed an “outperform” rating on shares of Applied Materials in a research report on Tuesday. Evercore set a $590.00 price objective on Applied Materials in a research report on Thursday. B. Riley Financial reiterated a “buy” rating and issued a $700.00 price objective (down from $790.00) on shares of Applied Materials in a research report on Friday, August 14th. New Street Research reduced their target price on Applied Materials from $580.00 to $525.00 and set a “neutral” rating on the stock in a research note on Friday, August 14th. Finally, Weiss Ratings downgraded Applied Materials from a “buy (b)” rating to a “buy (b-)” rating in a report on Wednesday, September 9th. Thirty investment analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the stock. Based on data from MarketBeat, Applied Materials currently has an average rating of “Moderate Buy” and an average target price of $632.70.

Applied Materials Trading Down 4.8%

Shares of NASDAQ:AMAT traded down $20.72 during midday trading on Thursday, hitting $409.29. 8,533,128 shares of the stock traded hands, compared to its average volume of 6,720,239. The stock has a market capitalization of $324.81 billion, a PE ratio of 35.28, a P/E/G ratio of 1.20 and a beta of 1.60. The business’s 50 day moving average is $480.52 and its two-hundred day moving average is $485.08. The company has a quick ratio of 1.79, a current ratio of 2.42 and a debt-to-equity ratio of 0.20. Applied Materials has a one year low of $203.40 and a one year high of $739.67.

Applied Materials (NASDAQ:AMAT) last posted its earnings results on Thursday, August 13th. The manufacturing equipment provider reported $3.50 earnings per share for the quarter, topping analysts’ consensus estimates of $3.40 by $0.10. The company had revenue of $9.12 billion during the quarter, compared to analyst estimates of $8.99 billion. Applied Materials had a net margin of 30.05% and a return on equity of 38.02%. Applied Materials’s revenue for the quarter was up 24.8% on a year-over-year basis. During the same period in the prior year, the business posted $2.48 earnings per share. Applied Materials has set its Q4 2026 guidance at 3.820-4.220 EPS. As a group, research analysts forecast that Applied Materials will post 12.79 earnings per share for the current year.

Applied Materials Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, December 10th. Shareholders of record on Thursday, November 19th will be given a dividend of $0.53 per share. The ex-dividend date of this dividend is Thursday, November 19th. This represents a $2.12 annualized dividend and a yield of 0.5%. Applied Materials’s dividend payout ratio (DPR) is currently 18.28%.

Insider Activity

In other news, Director Judy Bruner sold 1,000 shares of the company’s stock in a transaction dated Tuesday, September 8th. The shares were sold at an average price of $465.00, for a total value of $465,000.00. Following the sale, the director directly owned 25,544 shares of the company’s stock, valued at $11,877,960. This represents a 3.77% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CAO Adam Sanders sold 725 shares of the stock in a transaction dated Friday, October 2nd. The stock was sold at an average price of $544.56, for a total transaction of $394,806.00. Following the completion of the transaction, the chief accounting officer owned 3,181 shares of the company’s stock, valued at approximately $1,732,245.36. The trade was a 18.56% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last 90 days, insiders have sold 9,225 shares of company stock worth $4,454,181. Corporate insiders own 0.30% of the company’s stock.

Institutional Investors Weigh In On Applied Materials

Several hedge funds have recently bought and sold shares of the business. JFS Wealth Advisors LLC increased its stake in shares of Applied Materials by 4.3% during the second quarter. JFS Wealth Advisors LLC now owns 409 shares of the manufacturing equipment provider’s stock valued at $296,000 after purchasing an additional 17 shares in the last quarter. Innovative Asset Advisors Group LLC lifted its holdings in shares of Applied Materials by 2.1% during the second quarter. Innovative Asset Advisors Group LLC now owns 961 shares of the manufacturing equipment provider’s stock valued at $695,000 after purchasing an additional 20 shares during the last quarter. Stonebridge Financial Group LLC lifted its holdings in shares of Applied Materials by 2.1% during the second quarter. Stonebridge Financial Group LLC now owns 1,003 shares of the manufacturing equipment provider’s stock valued at $725,000 after purchasing an additional 21 shares during the last quarter. N.E.W. Advisory Services LLC lifted its holdings in shares of Applied Materials by 5.9% during the second quarter. N.E.W. Advisory Services LLC now owns 377 shares of the manufacturing equipment provider’s stock valued at $273,000 after purchasing an additional 21 shares during the last quarter. Finally, IMG Wealth Management Inc. boosted its position in shares of Applied Materials by 13.0% in the 2nd quarter. IMG Wealth Management Inc. now owns 183 shares of the manufacturing equipment provider’s stock worth $132,000 after purchasing an additional 21 shares in the last quarter. Institutional investors own 80.56% of the company’s stock.

Key Applied Materials News

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

• Positive Sentiment: Applied Materials opened its $5 billion EPIC Center in Sunnyvale, California, described as the world’s largest semiconductor equipment and process-technology research facility. The investment should strengthen the company’s ability to develop equipment for advanced chips and capitalize on long-term AI and semiconductor capacity growth. Applied Materials opens $5B semiconductor innovation center
• Positive Sentiment: Needham lowered its Applied Materials price target from $740 to $580 but maintained a “buy” rating, indicating that the recent pullback has created what the firm considers meaningful upside. Other recent commentary also highlights AMAT’s broad equipment portfolio and strategic position in semiconductor manufacturing.
• Positive Sentiment: Investors are evaluating whether the current decline could offer an attractive entry point. Historical rebounds after sharp selloffs, continued semiconductor capacity expansion, and expectations for a sales recovery support the longer-term bullish case. Has Buying Applied Materials Stock’s Dips Paid Off?
• Neutral Sentiment: Analyst commentary is mixed: some reports identify Applied Materials as a growth-at-a-reasonable-price opportunity, while others present a more cautious view of technology stocks. ETF activity has also been inconsistent, with 31 funds adding AMAT on October 13 but ETFs collectively selling shares on October 14.
• Negative Sentiment: Chip-equipment stocks are recording unusually long losing streaks as investors question whether AI-related spending can continue at its current pace. Those sector-wide concerns are currently outweighing the potential benefits of the new research center and are contributing to AMAT’s decline. Chip Equipment Stocks Notch Historic Losing Streaks

About Applied Materials

Applied Materials, Inc is a global supplier of equipment, services and software used to manufacture semiconductor chips, flat-panel displays and other advanced electronic products. Its technologies help customers build and enhance materials at the nanoscale, supporting processes such as deposition, etching, inspection, metrology and packaging.

The company’s offerings include semiconductor manufacturing systems, process-control and inspection equipment, and services designed to improve the performance, productivity and longevity of production equipment.