Applied Materials (NASDAQ:AMAT) Shares Down 9.7% After Insider Selling

Applied Materials, Inc. (NASDAQ:AMAT) shares were down 9.7% during mid-day trading on Friday following insider selling activity. The stock traded as low as $452.91 and last traded at $453.01. Approximately 11,673,707 shares traded hands during mid-day trading, an increase of 58% from the average daily volume of 7,399,866 shares. The stock had previously closed at $501.70.

Specifically, CFO Brice Hill sold 2,500 shares of the company’s stock in a transaction dated Wednesday, June 3rd. The shares were sold at an average price of $498.86, for a total value of $1,247,150.00. Following the sale, the chief financial officer owned 136,113 shares in the company, valued at approximately $67,901,331.18. This represents a 1.80% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, insider Prabu G. Raja sold 50,000 shares of the company’s stock in a transaction on Thursday, June 4th. The stock was sold at an average price of $505.28, for a total transaction of $25,264,000.00. Following the completion of the transaction, the insider directly owned 356,642 shares in the company, valued at $180,204,069.76. This trade represents a 12.30% decrease in their ownership of the stock. The SEC filing for this sale provides additional information.

Analyst Upgrades and Downgrades

Several research analysts have recently issued reports on the company. Weiss Ratings reaffirmed a “buy (b-)” rating on shares of Applied Materials in a research note on Friday, March 27th. Wells Fargo & Company lifted their target price on Applied Materials from $435.00 to $520.00 and gave the company an “overweight” rating in a research report on Friday, May 15th. JPMorgan Chase & Co. boosted their target price on Applied Materials from $400.00 to $515.00 and gave the company an “overweight” rating in a research note on Friday, May 15th. Deutsche Bank Aktiengesellschaft raised their price target on shares of Applied Materials from $450.00 to $550.00 and gave the stock a “buy” rating in a research note on Friday, May 15th. Finally, Truist Financial set a $575.00 price target on shares of Applied Materials in a research note on Thursday, May 28th. Twenty-seven analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $470.13.

Applied Materials Stock Down 9.7%

The firm has a 50 day simple moving average of $408.94 and a two-hundred day simple moving average of $342.31. The stock has a market capitalization of $359.67 billion, a P/E ratio of 42.54, a PEG ratio of 1.27 and a beta of 1.67. The company has a quick ratio of 1.80, a current ratio of 2.51 and a debt-to-equity ratio of 0.22.

Applied Materials (NASDAQ:AMAT) last issued its quarterly earnings results on Thursday, May 14th. The manufacturing equipment provider reported $2.86 EPS for the quarter, topping analysts’ consensus estimates of $2.68 by $0.18. The business had revenue of $7.91 billion for the quarter, compared to analyst estimates of $7.68 billion. Applied Materials had a return on equity of 36.97% and a net margin of 29.31%.Applied Materials’s quarterly revenue was up 11.4% compared to the same quarter last year. During the same period last year, the company posted $2.39 earnings per share. Applied Materials has set its Q3 2026 guidance at 3.160-3.560 EPS. On average, equities research analysts expect that Applied Materials, Inc. will post 12.02 earnings per share for the current year.

Applied Materials Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, June 11th. Shareholders of record on Thursday, May 21st will be issued a $0.53 dividend. This represents a $2.12 dividend on an annualized basis and a yield of 0.5%. This is a positive change from Applied Materials’s previous quarterly dividend of $0.46. The ex-dividend date is Thursday, May 21st. Applied Materials’s dividend payout ratio is currently 19.91%.

Hedge Funds Weigh In On Applied Materials

Institutional investors and hedge funds have recently made changes to their positions in the business. First Nebraska Trust Co bought a new position in Applied Materials in the 1st quarter worth about $29,488,000. Foguth Wealth Management LLC. purchased a new position in shares of Applied Materials during the 1st quarter worth about $234,000. Financial Solutions Advisory Group Inc. purchased a new stake in Applied Materials in the 1st quarter worth about $885,000. Krane Financial Solutions LLC bought a new stake in Applied Materials in the first quarter worth about $713,000. Finally, Asset Dedication LLC boosted its position in shares of Applied Materials by 32.7% during the first quarter. Asset Dedication LLC now owns 1,226 shares of the manufacturing equipment provider’s stock valued at $419,000 after buying an additional 302 shares during the period. 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.