Applied Materials (NASDAQ:AMAT) Stock Falls 3.7% Following Analyst Downgrade

Shares of Applied Materials, Inc. (NASDAQ:AMAT) were down 3.7% during trading on Thursday after Zacks Research downgraded the stock from a strong-buy rating to a hold rating. The company traded as low as $418.24 and last traded at $430.01. 12,119,000 shares traded hands during mid-day trading, an increase of 54% from the average session volume of 7,888,926 shares. The stock had previously closed at $446.63.

Other research analysts have also recently issued research reports about the stock. Wall Street Zen raised shares of Applied Materials from a “hold” rating to a “buy” rating in a report on Saturday, September 26th. Morgan Stanley decreased their price target on shares of Applied Materials from $642.00 to $563.00 and set an “equal weight” rating on the stock in a report on Monday, September 28th. Argus set a $600.00 price objective on shares of Applied Materials and gave the stock a “buy” rating in a research report on Tuesday, August 18th. TD Cowen reissued a “buy” rating and issued a $700.00 price objective on shares of Applied Materials in a research note on Friday, August 14th. Finally, Cantor Fitzgerald restated an “outperform” rating on shares of Applied Materials in a research report on Tuesday. Thirty research analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the stock. According to MarketBeat.com, Applied Materials has an average rating of “Moderate Buy” and an average target price of $632.70.

Insider Transactions at Applied Materials

In other news, Director Judy Bruner sold 1,000 shares of the company’s stock in a transaction that occurred on Tuesday, September 8th. The stock was sold at an average price of $465.00, for a total value of $465,000.00. Following the completion of the transaction, the director owned 25,544 shares of the company’s stock, valued at $11,877,960. This represents a 3.77% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Also, CFO Brice Hill sold 7,500 shares of the firm’s stock in a transaction that occurred on Tuesday, August 25th. The shares were sold at an average price of $479.25, for a total transaction of $3,594,375.00. Following the completion of the transaction, the chief financial officer owned 128,613 shares of the company’s stock, valued at approximately $61,637,780.25. This trade represents a 5.51% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 9,225 shares of company stock worth $4,454,181. Insiders own 0.30% of the company’s stock.

Key Stories Impacting Applied Materials

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

• Positive Sentiment: Applied Materials opened its $5 billion EPIC Center in Sunnyvale, California, described as the world’s largest semiconductor equipment and process-technology research facility. The investment should strengthen the company’s ability to develop equipment for advanced chips and capitalize on long-term AI and semiconductor capacity growth. Applied Materials opens $5B semiconductor innovation center
• Positive Sentiment: Needham lowered its Applied Materials price target from $740 to $580 but maintained a “buy” rating, indicating that the recent pullback has created what the firm considers meaningful upside. Other recent commentary also highlights AMAT’s broad equipment portfolio and strategic position in semiconductor manufacturing.
• Positive Sentiment: Investors are evaluating whether the current decline could offer an attractive entry point. Historical rebounds after sharp selloffs, continued semiconductor capacity expansion, and expectations for a sales recovery support the longer-term bullish case. Has Buying Applied Materials Stock’s Dips Paid Off?
• Neutral Sentiment: Analyst commentary is mixed: some reports identify Applied Materials as a growth-at-a-reasonable-price opportunity, while others present a more cautious view of technology stocks. ETF activity has also been inconsistent, with 31 funds adding AMAT on October 13 but ETFs collectively selling shares on October 14.
• Negative Sentiment: Chip-equipment stocks are recording unusually long losing streaks as investors question whether AI-related spending can continue at its current pace. Those sector-wide concerns are currently outweighing the potential benefits of the new research center and are contributing to AMAT’s decline. Chip Equipment Stocks Notch Historic Losing Streaks

Institutional Trading of Applied Materials

Institutional investors have recently modified their holdings of the business. Founders Grove Wealth Partners LLC increased its stake in shares of Applied Materials by 68.4% in the third quarter. Founders Grove Wealth Partners LLC now owns 1,157 shares of the manufacturing equipment provider’s stock valued at $592,000 after buying an additional 470 shares during the period. CRA Financial Services LLC lifted its stake in shares of Applied Materials by 3.2% in the third quarter. CRA Financial Services LLC now owns 797 shares of the manufacturing equipment provider’s stock worth $407,000 after acquiring an additional 25 shares during the period. Center For Asset Management LLC boosted its holdings in Applied Materials by 30.5% in the third quarter. Center For Asset Management LLC now owns 1,794 shares of the manufacturing equipment provider’s stock valued at $918,000 after acquiring an additional 419 shares during the last quarter. Robertson Stephens Wealth Management LLC boosted its holdings in Applied Materials by 193.1% in the third quarter. Robertson Stephens Wealth Management LLC now owns 2,793 shares of the manufacturing equipment provider’s stock valued at $1,428,000 after acquiring an additional 1,840 shares during the last quarter. Finally, Western Pacific Wealth Management LP boosted its holdings in Applied Materials by 187.5% in the third quarter. Western Pacific Wealth Management LP now owns 483 shares of the manufacturing equipment provider’s stock valued at $247,000 after acquiring an additional 315 shares during the last quarter. Institutional investors own 80.56% of the company’s stock.

Applied Materials Price Performance

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 business’s 50-day simple moving average is $480.52 and its two-hundred day simple moving average is $485.08. The firm has a market cap of $324.81 billion, a price-to-earnings ratio of 35.28, a P/E/G ratio of 1.20 and a beta of 1.60.

Applied Materials (NASDAQ:AMAT) last announced its earnings results on Thursday, August 13th. The manufacturing equipment provider reported $3.50 earnings per share for the quarter, topping analysts’ consensus estimates of $3.40 by $0.10. Applied Materials had a net margin of 30.05% and a return on equity of 38.02%. The business had revenue of $9.12 billion during the quarter, compared to the consensus estimate of $8.99 billion. During the same quarter last year, the firm earned $2.48 earnings per share. Applied Materials’s quarterly revenue was up 24.8% on a year-over-year basis. Applied Materials has set its Q4 2026 guidance at 3.820-4.220 EPS. As a group, research analysts expect that Applied Materials, Inc. will post 12.79 EPS for the current fiscal year.

Applied Materials Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, December 10th. Shareholders of record on Thursday, November 19th will be paid a $0.53 dividend. This represents a $2.12 dividend on an annualized basis and a yield of 0.5%. The ex-dividend date of this dividend is Thursday, November 19th. Applied Materials’s dividend payout ratio (DPR) is 18.28%.

Applied Materials Company Profile

Applied Materials, Inc is a global supplier of equipment, services and software used to manufacture semiconductor chips, flat-panel displays and other advanced electronic products. Its technologies help customers build and enhance materials at the nanoscale, supporting processes such as deposition, etching, inspection, metrology and packaging.

The company’s offerings include semiconductor manufacturing systems, process-control and inspection equipment, and services designed to improve the performance, productivity and longevity of production equipment.