Applied Materials (NASDAQ:AMAT) Trading Down 4.1% – What’s Next?

Applied Materials, Inc. (NASDAQ:AMAT) shares were down 4.1% during mid-day trading on Thursday . The stock traded as low as $406.01 and last traded at $410.8330. Approximately 7,135,219 shares were traded during trading, a decline of 1% from the average daily volume of 7,175,017 shares. The stock had previously closed at $428.62.

More Applied Materials News

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

• Positive Sentiment: Seaport Research initiated coverage with a Buy rating and a $500 price target, calling Applied Materials a key beneficiary of AI semiconductor spending. Seaport Research Initiates Coverage of Applied Materials (AMAT) with Buy
• Positive Sentiment: Analysts at Erste Group raised FY2027 earnings estimates, reinforcing expectations for long-term earnings growth. BofA Remains Bullish on Applied Materials (AMAT)
• Positive Sentiment: Wall Street commentary suggests Applied Materials could post an earnings beat in its upcoming report, which is keeping sentiment constructive. Applied Materials (AMAT) Reports Next Week: Wall Street Expects Earnings Growth
• Neutral Sentiment: Recent articles note the stock had fallen more than the broader market in the prior session, but those moves appear secondary to the stronger analyst-driven optimism. Here’s Why Applied Materials (AMAT) Fell More Than Broader Market

Analyst Ratings Changes

Several equities analysts recently issued reports on AMAT shares. Sanford C. Bernstein restated an “outperform” rating and set a $425.00 price target on shares of Applied Materials in a research note on Friday, February 13th. Erste Group Bank upgraded Applied Materials from a “hold” rating to a “buy” rating in a research note on Monday, April 27th. Stifel Nicolaus boosted their price target on Applied Materials from $340.00 to $450.00 and gave the company a “buy” rating in a research note on Friday, February 13th. Wells Fargo & Company boosted their price target on Applied Materials from $350.00 to $435.00 and gave the company an “overweight” rating in a research note on Friday, February 13th. Finally, Summit Insights upgraded Applied Materials from a “hold” rating to a “buy” rating in a research note on Friday, February 13th. Twenty-eight investment analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company’s stock. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and an average price target of $375.90.

Applied Materials Stock Performance

The company has a market capitalization of $345.36 billion, a P/E ratio of 44.54, a price-to-earnings-growth ratio of 1.82 and a beta of 1.66. The firm has a 50 day moving average price of $371.10 and a two-hundred day moving average price of $311.19. The company has a debt-to-equity ratio of 0.30, a quick ratio of 1.94 and a current ratio of 2.71.

Applied Materials (NASDAQ:AMAT) last released its quarterly earnings data on Thursday, February 12th. The manufacturing equipment provider reported $2.38 earnings per share for the quarter, beating the consensus estimate of $2.21 by $0.17. Applied Materials had a return on equity of 37.52% and a net margin of 27.78%.The company had revenue of $7.01 billion for the quarter, compared to analyst estimates of $6.88 billion. During the same period in the prior year, the company posted $2.38 EPS. The company’s revenue was down 2.1% compared to the same quarter last year. Applied Materials has set its Q2 2026 guidance at 2.440-2.840 EPS. On average, research analysts expect that Applied Materials, Inc. will post 11.14 earnings per share for the current fiscal year.

Applied Materials Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, June 11th. Stockholders of record on Thursday, May 21st will be paid a $0.53 dividend. The ex-dividend date is Thursday, May 21st. This represents a $2.12 annualized dividend and a dividend yield of 0.5%. This is an increase from Applied Materials’s previous quarterly dividend of $0.46. Applied Materials’s dividend payout ratio is currently 18.83%.

Insider Activity

In other news, Director Judy Bruner sold 2,500 shares of the company’s stock in a transaction that occurred on Wednesday, February 25th. The stock was sold at an average price of $391.71, for a total value of $979,275.00. Following the sale, the director directly owned 26,089 shares in the company, valued at approximately $10,219,322.19. This represents a 8.74% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Also, CFO Brice Hill sold 5,000 shares of the company’s stock in a transaction that occurred on Tuesday, February 17th. The shares were sold at an average price of $361.21, for a total value of $1,806,050.00. Following the completion of the sale, the chief financial officer owned 138,565 shares in the company, valued at approximately $50,051,063.65. This represents a 3.48% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 12,003 shares of company stock worth $4,484,189. Company insiders own 0.30% of the company’s stock.

Institutional Investors Weigh In On Applied Materials

A number of large investors have recently bought and sold shares of the business. Grandfield & Dodd LLC grew its holdings in Applied Materials by 6.9% during the third quarter. Grandfield & Dodd LLC now owns 269,511 shares of the manufacturing equipment provider’s stock worth $55,180,000 after purchasing an additional 17,397 shares during the period. First Trust Advisors LP lifted its position in shares of Applied Materials by 4.9% in the third quarter. First Trust Advisors LP now owns 3,101,772 shares of the manufacturing equipment provider’s stock valued at $635,057,000 after buying an additional 145,050 shares during the last quarter. Canada Post Corp Registered Pension Plan lifted its position in shares of Applied Materials by 82.2% in the third quarter. Canada Post Corp Registered Pension Plan now owns 26,893 shares of the manufacturing equipment provider’s stock valued at $5,512,000 after buying an additional 12,132 shares during the last quarter. Elo Mutual Pension Insurance Co boosted its stake in shares of Applied Materials by 21.8% during the 3rd quarter. Elo Mutual Pension Insurance Co now owns 96,712 shares of the manufacturing equipment provider’s stock worth $19,801,000 after acquiring an additional 17,288 shares during the period. Finally, Worth Asset Management LLC acquired a new position in shares of Applied Materials during the 4th quarter worth approximately $1,531,000. 80.56% of the stock is currently owned by institutional investors.

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.