Applied Materials (NASDAQ:AMAT) Stock Price Down 2% – Should You Sell?

Applied Materials, Inc. (NASDAQ:AMAT) traded down 2% during mid-day trading on Tuesday. The stock traded as low as $399.03 and last traded at $404.98. Approximately 6,799,414 shares changed hands during trading, a decline of 14% from the average session volume of 7,881,442 shares. The stock had previously closed at $413.11.

Key Applied Materials News

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

• Positive Sentiment: A new industry report projects the global e-beam wafer-inspection market will expand from $1.3 billion in 2024 to $3.6 billion by 2030. Applied Materials is identified as a key participant, with shrinking chip nodes, higher yield requirements and AI-enabled inspection data supporting long-term demand for its equipment. E-Beam Wafer Inspection Systems Market Forecasts Growth
• Positive Sentiment: Analyst commentary remains constructive after Applied Materials’ recent earnings beat. The company reported quarterly revenue of $9.12 billion and earnings of $3.50 per share, ahead of consensus estimates, while revenue grew 24.8% year over year. Some analysts reportedly maintain price targets substantially above the current trading range, pointing to expected growth in semiconductor capital spending. Applied Materials Cratered 20% Since July
• Neutral Sentiment: Applied Materials was named an honoree of The Conference Board’s inaugural 2027 Innovation Awards. The recognition supports the company’s technology profile but is unlikely to materially affect near-term earnings or valuation. The Conference Board Announces 2027 Innovation Awards Honorees
• Neutral Sentiment: Applied Materials is also profiled as a beneficiary of the flexible-electronics market, which is forecast to grow from $32 billion in 2024 to $89.4 billion by 2030. This represents a potential growth avenue, although the report does not announce a specific contract or financial impact. Flexible Electronics Global Strategic Business Report
• Negative Sentiment: ETF investors sold approximately $58.8 million of AMAT shares on October 15, adding near-term technical and supply pressure. Applied Materials Sees Net ETF Selling
• Negative Sentiment: Commentary also warns that much of Applied Materials’ artificial-intelligence growth may already be reflected in its valuation after a strong one-year rally. That raises the risk of profit-taking and higher expectations ahead of future results. Applied Materials AI Growth Already Priced In

Analyst Upgrades and Downgrades

AMAT has been the subject of a number of analyst reports. Bank of America decreased their price objective on shares of Applied Materials from $720.00 to $650.00 and set a “buy” rating for the company in a research report on Friday, August 14th. JPMorgan Chase & Co. upped their target price on shares of Applied Materials from $515.00 to $660.00 and gave the company an “overweight” rating in a report on Friday, August 14th. Needham & Company LLC dropped their target price on shares of Applied Materials from $740.00 to $580.00 and set a “buy” rating on the stock in a report on Friday. Wall Street Zen upgraded shares of Applied Materials from a “hold” rating to a “buy” rating in a research note on Saturday, September 26th. Finally, Royal Bank Of Canada reiterated an “outperform” rating and set a $600.00 price target on shares of Applied Materials in a report on Wednesday, October 14th. Thirty equities research analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus target price of $632.70.

Applied Materials Stock Performance

The company has a debt-to-equity ratio of 0.20, a current ratio of 2.42 and a quick ratio of 1.79. The stock’s 50-day simple moving average is $478.34 and its 200 day simple moving average is $486.73. The stock has a market capitalization of $321.39 billion, a P/E ratio of 34.91, a PEG ratio of 1.14 and a beta of 1.60.

Applied Materials (NASDAQ:AMAT) last posted its earnings results on Thursday, August 13th. The manufacturing equipment provider reported $3.50 earnings per share (EPS) 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 analysts’ expectations of $8.99 billion. Applied Materials had a net margin of 30.05% and a return on equity of 38.02%. Applied Materials’s quarterly revenue was up 24.8% compared to the same quarter last year. During the same quarter last year, the company posted $2.48 EPS. Applied Materials has set its Q4 2026 guidance at 3.820-4.220 EPS. Research analysts expect that Applied Materials, Inc. will post 12.79 EPS for the current fiscal year.

Applied Materials Dividend Announcement

The business 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 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 18.28%.

Insiders Place Their Bets

In other news, Director Judy Bruner sold 1,000 shares of the stock in a transaction that occurred on Tuesday, September 8th. The stock was sold at an average price of $465.00, for a total transaction of $465,000.00. Following the transaction, the director owned 25,544 shares in the company, valued at approximately $11,877,960. This trade represents a 3.77% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CFO Brice Hill sold 7,500 shares of the stock in a transaction that occurred on Tuesday, August 25th. The stock was sold at an average price of $479.25, for a total value of $3,594,375.00. Following the transaction, the chief financial officer owned 128,613 shares in the company, valued at approximately $61,637,780.25. This trade represents a 5.51% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 9,225 shares of company stock worth $4,454,181 over the last three months. Insiders own 0.30% of the company’s stock.

Institutional Trading of Applied Materials

Several institutional investors have recently added to or reduced their stakes in the company. Bank Pictet & Cie Europe AG boosted its holdings in Applied Materials by 5.8% in the 3rd quarter. Bank Pictet & Cie Europe AG now owns 1,516 shares of the manufacturing equipment provider’s stock valued at $772,000 after purchasing an additional 83 shares during the period. 55 North Private Wealth LLC grew its position in shares of Applied Materials by 11.1% during the 3rd quarter. 55 North Private Wealth LLC now owns 1,426 shares of the manufacturing equipment provider’s stock worth $729,000 after purchasing an additional 143 shares in the last quarter. Prime Capital Investment Advisors LLC grew its position in shares of Applied Materials by 0.7% during the 3rd quarter. Prime Capital Investment Advisors LLC now owns 15,514 shares of the manufacturing equipment provider’s stock worth $7,933,000 after purchasing an additional 112 shares in the last quarter. Prentice Wealth Management LLC increased its holdings in shares of Applied Materials by 19.3% during the third quarter. Prentice Wealth Management LLC now owns 1,087 shares of the manufacturing equipment provider’s stock worth $556,000 after purchasing an additional 176 shares during the period. Finally, Willis Investment Counsel increased its holdings in shares of Applied Materials by 7.8% during the third quarter. Willis Investment Counsel now owns 33,560 shares of the manufacturing equipment provider’s stock worth $17,162,000 after purchasing an additional 2,425 shares during the period. 80.56% of the stock is currently owned by institutional investors.

About Applied Materials

Applied Materials, Inc is a technology company that supplies equipment, services and software used to manufacture semiconductors and advanced displays. Its products help customers fabricate the integrated circuits and other components used in computers, mobile devices, data centers, automobiles and a range of connected technologies.

The company’s offerings include systems for materials engineering, wafer fabrication, inspection and process control, along with equipment and services designed to improve manufacturing productivity and yield.