Applied Materials (NASDAQ:AMAT) Stock Price Down 3.3% on Analyst Downgrade

Applied Materials, Inc. (NASDAQ:AMAT) shares dropped 3.3% during mid-day trading on Wednesday after Morgan Stanley lowered their price target on the stock from $563.00 to $538.00. Morgan Stanley currently has an equal weight rating on the stock. Applied Materials traded as low as $362.93 and last traded at $369.40. Approximately 7,881,417 shares were traded during trading, an increase of 0% from the average daily volume of 7,869,869 shares. The stock had previously closed at $381.92.

AMAT has been the subject of a number of other research reports. Cantor Fitzgerald reiterated an “overweight” rating on shares of Applied Materials in a research note on Tuesday, October 20th. Sanford C. Bernstein lifted their price objective on shares of Applied Materials from $675.00 to $700.00 and gave the company an “outperform” rating in a research note on Friday, August 14th. Weiss Ratings lowered shares of Applied Materials from a “buy (b)” rating to a “buy (b-)” rating in a research note on Wednesday, September 9th. Citigroup reaffirmed a “buy” rating and issued a $710.00 target price (up from $550.00) on shares of Applied Materials in a report on Monday, August 3rd. Finally, Bank of America decreased their target price on shares of Applied Materials from $720.00 to $650.00 and set a “buy” rating for the company in a research note on Friday, August 14th. Thirty equities research analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $632.01.

Insider Activity at Applied Materials

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

Key Headlines Impacting Applied Materials

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

• Positive Sentiment: ETFs bought $237 million of AMAT shares on November 2; 51 funds were buyers versus 26 sellers. Capital Group Dividend Value also added $146.3 million in shares, signaling institutional demand. Article Article
• Positive Sentiment: Recent results showed 41% growth in adjusted EPS and 52% growth in DRAM revenue, alongside raised revenue guidance. The company is also investing in capacity and hybrid bonding technology. Article
• Neutral Sentiment: Morgan Stanley lowered its price target to $538 from $563 and maintained an Equal Weight/Hold rating. The cut reflects a more cautious view, though the new target remains above the reference share price. Article
• Negative Sentiment: AMAT has fallen sharply over the past month, and its November 12 earnings report is viewed as a key near-term test for whether the decline can reverse or continue. Article
• Negative Sentiment: Sector-wide chip weakness and ETF selling have pressured semiconductor stocks, creating a headwind for AMAT despite its company-specific earnings growth. Article

Hedge Funds Weigh In On Applied Materials

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

Applied Materials Stock Down 3.3%

The company has a market cap of $293.16 billion, a P/E ratio of 31.84, a price-to-earnings-growth ratio of 0.73 and a beta of 1.67. The company has a current ratio of 2.42, a quick ratio of 1.79 and a debt-to-equity ratio of 0.20. The firm’s 50 day moving average price is $453.26 and its 200-day moving average price is $444.38.

Applied Materials (NASDAQ:AMAT) last released its earnings results on Thursday, August 13th. The manufacturing equipment provider reported $3.50 EPS for the quarter, topping analysts’ consensus estimates of $3.40 by $0.10. The firm 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%. The business’s quarterly revenue was up 24.8% compared to the same quarter last year. During the same quarter in the previous year, the business earned $2.48 EPS. Applied Materials has set its Q4 2026 guidance at 3.820-4.220 EPS. As a group, equities research analysts expect that Applied Materials, Inc. will post 12.79 EPS for the current year.

Applied Materials Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, December 10th. Investors of record on Thursday, November 19th will be issued a dividend of $0.53 per share. This represents a $2.12 dividend on an annualized basis and a dividend yield of 0.6%. The ex-dividend date is Thursday, November 19th. Applied Materials’s dividend payout ratio (DPR) is presently 18.28%.

Applied Materials Company Profile

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.