Applied Materials (NASDAQ:AMAT) Trading Down 6.6% – Time to Sell?

Applied Materials, Inc. (NASDAQ:AMAT)’s stock price was down 6.6% during mid-day trading on Wednesday . The stock traded as low as $287.49 and last traded at $297.60. Approximately 14,585,859 shares were traded during trading, an increase of 77% from the average daily volume of 8,255,200 shares. The stock had previously closed at $318.67.

Applied Materials News Roundup

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

• Positive Sentiment: Morgan Stanley expects Applied Materials to surpass Q1 estimates, a forecast that supports the case for another earnings beat and could underpin upside when next results arrive. Morgan Stanley expects Applied Materials to surpass Q1 estimates
• Positive Sentiment: An analyst price-target lift (reported to $329.63, +17.14%) signals renewed conviction from at least one desk and provides a near-term valuation anchor for buyers. Applied Materials (AMAT) price target increased by 17.14% to 329.63
• Positive Sentiment: Zacks highlights AMAT’s strong history of earnings surprises and argues the company has the characteristics (earnings momentum and analyst estimate trends) that favor another upside surprise. That supports near-term sentiment into results. Will Applied Materials (AMAT) Beat Estimates Again in Its Next Earnings Report?
• Neutral Sentiment: Market commentaries debate whether AMAT’s ~80% one-year run leaves room for further upside — useful for positioning but not an immediate catalyst. Is It Too Late To Consider Applied Materials (AMAT) After Its 80% One Year Surge?
• Neutral Sentiment: Zacks pieces offering style-score and Wall Street views provide broader buy/sell context but are general research rather than fresh catalysts. Here’s Why Applied Materials (AMAT) is a Strong Growth Stock Is It Worth Investing in Applied Materials (AMAT) Based on Wall Street’s Bullish Views?
• Neutral Sentiment: Short-interest data released appears inconsistent/erroneous (zeros and NaN), so it offers no reliable signal about covering or squeeze dynamics today.
• Negative Sentiment: TipRanks and market reports note a sharp intraday drop (about a single-digit percent move) despite “hopes for a more constructive direction,” suggesting profit-taking/rotation and short-term technical weakness outweighed positive analyst notes. Applied Materials Stock (AMAT) Plunges despite Hopes for a ‘More Constructive Direction’
• Negative Sentiment: Zacks explains why AMAT recently fell more than the broader market, which aligns with the day’s heavier selling pressure and explains part of today’s underperformance. Here’s Why Applied Materials (AMAT) Fell More Than Broader Market

Analyst Ratings Changes

A number of research analysts have recently weighed in on the company. Needham & Company LLC lifted their price target on Applied Materials from $260.00 to $390.00 and gave the company a “buy” rating in a report on Tuesday, January 20th. Sanford C. Bernstein restated a “market perform” rating and set a $325.00 price objective on shares of Applied Materials in a research report on Monday, January 12th. Susquehanna raised Applied Materials from a “neutral” rating to a “positive” rating and lifted their target price for the company from $180.00 to $400.00 in a research note on Sunday, January 11th. Morgan Stanley upped their target price on Applied Materials from $273.00 to $364.00 and gave the company an “overweight” rating in a report on Monday. Finally, Barclays upgraded shares of Applied Materials from an “equal weight” rating to an “overweight” rating and raised their price target for the stock from $250.00 to $360.00 in a report on Thursday, January 15th. Twenty-four equities research analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $311.04.

Applied Materials Price Performance

The company has a market capitalization of $236.21 billion, a PE ratio of 34.29, a P/E/G ratio of 2.94 and a beta of 1.70. The company has a debt-to-equity ratio of 0.32, a quick ratio of 1.87 and a current ratio of 2.61. The stock has a 50 day moving average price of $284.62 and a two-hundred day moving average price of $229.32.

Applied Materials (NASDAQ:AMAT) last released its quarterly earnings data on Thursday, November 13th. The manufacturing equipment provider reported $2.17 EPS for the quarter, topping analysts’ consensus estimates of $2.11 by $0.06. The firm had revenue of $6.80 billion for the quarter, compared to the consensus estimate of $6.68 billion. Applied Materials had a return on equity of 39.26% and a net margin of 24.67%.The firm’s revenue was down 3.5% on a year-over-year basis. During the same quarter in the prior year, the company posted $2.32 earnings per share. Applied Materials has set its Q1 2026 guidance at 1.980-2.380 EPS. Equities analysts forecast that Applied Materials, Inc. will post 9.38 earnings per share for the current year.

Applied Materials Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, March 12th. Stockholders of record on Thursday, February 19th will be given a $0.46 dividend. This represents a $1.84 annualized dividend and a dividend yield of 0.6%. The ex-dividend date of this dividend is Thursday, February 19th. Applied Materials’s dividend payout ratio (DPR) is currently 21.20%.

Insider Transactions at Applied Materials

In other Applied Materials news, SVP Teri A. Little sold 4,000 shares of the firm’s stock in a transaction that occurred on Tuesday, November 25th. The stock was sold at an average price of $238.24, for a total value of $952,960.00. Following the sale, the senior vice president owned 84,351 shares of the company’s stock, valued at $20,095,782.24. This trade represents a 4.53% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, CAO Adam Sanders sold 609 shares of Applied Materials stock in a transaction that occurred on Monday, December 1st. The stock was sold at an average price of $255.53, for a total value of $155,617.77. Following the completion of the transaction, the chief accounting officer directly owned 4,413 shares in the company, valued at approximately $1,127,653.89. This represents a 12.13% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 8,609 shares of company stock worth $2,044,898 over the last quarter. 0.30% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Applied Materials

Several hedge funds and other institutional investors have recently modified their holdings of AMAT. Marquette Asset Management LLC increased its holdings in shares of Applied Materials by 150.0% during the 3rd quarter. Marquette Asset Management LLC now owns 125 shares of the manufacturing equipment provider’s stock worth $26,000 after purchasing an additional 75 shares during the period. Redmont Wealth Advisors LLC acquired a new stake in Applied Materials during the third quarter worth about $26,000. Highline Wealth Partners LLC grew its position in Applied Materials by 48.7% during the fourth quarter. Highline Wealth Partners LLC now owns 116 shares of the manufacturing equipment provider’s stock worth $30,000 after buying an additional 38 shares in the last quarter. Financial Gravity Companies Inc. bought a new position in Applied Materials during the second quarter valued at about $31,000. Finally, Manning & Napier Advisors LLC acquired a new position in Applied Materials in the 3rd quarter valued at approximately $31,000. Institutional investors and hedge funds own 80.56% of the company’s stock.

Applied Materials Company Profile

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.