Applied Materials (NASDAQ:AMAT) Shares Gap Down Following Insider Selling

Applied Materials, Inc. (NASDAQ:AMAT) gapped down before the market opened on Wednesday after an insider sold shares in the company. The stock had previously closed at $723.00, but opened at $668.41. Applied Materials shares last traded at $682.9620, with a volume of 2,509,317 shares changing hands.

Specifically, CEO Gary E. Dickerson sold 20,000 shares of the company’s stock in a transaction that occurred on Tuesday, June 30th. The shares were sold at an average price of $735.22, for a total transaction of $14,704,400.00. Following the sale, the chief executive officer owned 1,599,843 shares of the company’s stock, valued at approximately $1,176,236,570.46. This represents a 1.23% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, CEO Gary E. Dickerson sold 58,321 shares of the firm’s stock in a transaction on Monday, June 29th. The shares were sold at an average price of $700.36, for a total transaction of $40,845,695.56. Following the completion of the transaction, the chief executive officer directly owned 1,619,843 shares of the company’s stock, valued at approximately $1,134,473,243.48. The trade was a 3.48% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure.

Analyst Ratings Changes

Several research analysts have recently weighed in on AMAT shares. The Goldman Sachs Group upped their price target on shares of Applied Materials from $390.00 to $520.00 and gave the stock a “buy” rating in a report on Friday, May 15th. UBS Group boosted their target price on Applied Materials from $515.00 to $570.00 and gave the stock a “buy” rating in a research report on Wednesday, June 10th. Jefferies Financial Group upped their target price on Applied Materials from $510.00 to $770.00 and gave the stock a “buy” rating in a research note on Friday, June 26th. Royal Bank Of Canada raised their price target on Applied Materials from $500.00 to $520.00 and gave the company an “outperform” rating in a report on Friday, May 15th. Finally, TD Cowen lifted their price target on Applied Materials from $450.00 to $525.00 and gave the company a “buy” rating in a research report on Friday, May 15th. Twenty-seven equities research analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $553.56.

Key Stories Impacting Applied Materials

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

• Positive Sentiment: Applied Materials is being highlighted as a key beneficiary of AI infrastructure spending, with coverage emphasizing its role in DRAM and advanced packaging innovations that support next-generation semiconductor growth. Applied Materials, Inc. (AMAT) Discusses DRAM and Advanced Packaging Innovations for AI-Driven Semiconductor Growth Prepared Remarks Transcript
• Positive Sentiment: Investor sentiment was also supported by a Zacks list naming AMAT among the day’s top momentum stocks, reinforcing bullish technical momentum. Best Momentum Stocks to Buy for July 2nd
• Positive Sentiment: Market commentary continues to frame Applied Materials as a behind-the-scenes winner from the AI boom, which could help justify its elevated valuation if chip demand stays strong. Applied Materials Is Silently Powering the AI Boom. Here’s Why.
• Neutral Sentiment: Broader semiconductor stocks sold off as investors took profits after a strong first half, suggesting some of AMAT’s weakness may be sector-driven rather than company-specific. Why Applied Materials (AMAT) Shares Are Falling Today
• Neutral Sentiment: Another report noted AMAT fell more than the overall market in the latest session, but the move was tied to chip-sector weakness rather than a new earnings miss or guidance cut. Applied Materials (AMAT) Suffers a Larger Drop Than the General Market: Key Insights
• Negative Sentiment: CEO Gary Dickerson disclosed two sizable stock sales, including 20,000 shares sold at $735.22, which can weigh on investor sentiment even though he still retains a very large position. Applied Materials (NASDAQ:AMAT) CEO Sells $14,704,400.00 in Stock

Applied Materials Trading Down 7.4%

The stock has a 50 day moving average of $495.52 and a 200 day moving average of $389.39. The company has a debt-to-equity ratio of 0.22, a current ratio of 2.51 and a quick ratio of 1.80. The firm has a market cap of $478.79 billion, a P/E ratio of 56.62, a PEG ratio of 1.81 and a beta of 1.57.

Applied Materials (NASDAQ:AMAT) last issued its quarterly earnings results on Thursday, May 14th. The manufacturing equipment provider reported $2.86 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.68 by $0.18. Applied Materials had a return on equity of 36.97% and a net margin of 29.31%.The firm had revenue of $7.91 billion during the quarter, compared to analyst estimates of $7.68 billion. During the same quarter in the previous year, the company posted $2.39 earnings per share. The company’s revenue was up 11.4% compared to the same quarter last year. Applied Materials has set its Q3 2026 guidance at 3.160-3.560 EPS. As a group, equities research analysts predict that Applied Materials, Inc. will post 12.11 EPS for the current year.

Applied Materials Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Thursday, August 20th will be given a $0.53 dividend. The ex-dividend date is Thursday, August 20th. This represents a $2.12 dividend on an annualized basis and a yield of 0.4%. Applied Materials’s payout ratio is presently 19.91%.

Institutional Trading of Applied Materials

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Vanguard Group Inc. raised its stake in shares of Applied Materials by 0.4% during the fourth quarter. Vanguard Group Inc. now owns 76,779,340 shares of the manufacturing equipment provider’s stock worth $19,731,523,000 after acquiring an additional 330,197 shares in the last quarter. Capital Research Global Investors lifted its holdings in shares of Applied Materials by 119.8% in the 4th quarter. Capital Research Global Investors now owns 32,707,049 shares of the manufacturing equipment provider’s stock worth $8,405,458,000 after acquiring an additional 17,829,377 shares during the last quarter. Ameriprise Financial Inc. boosted its stake in shares of Applied Materials by 40.1% in the 3rd quarter. Ameriprise Financial Inc. now owns 12,520,114 shares of the manufacturing equipment provider’s stock valued at $2,563,376,000 after purchasing an additional 3,583,751 shares in the last quarter. Morgan Stanley boosted its stake in shares of Applied Materials by 3.4% in the 4th quarter. Morgan Stanley now owns 11,470,835 shares of the manufacturing equipment provider’s stock valued at $2,947,891,000 after purchasing an additional 373,012 shares in the last quarter. Finally, Norges Bank bought a new position in shares of Applied Materials during the 4th quarter valued at $2,858,543,000. Hedge funds and other institutional investors 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.