Applied Materials (NASDAQ:AMAT) Stock Price Down 10% Following Insider Selling

Applied Materials, Inc. (NASDAQ:AMAT)’s stock price dropped 10% during mid-day trading on Wednesday after an insider sold shares in the company. The stock traded as low as $639.06 and last traded at $650.91. 15,772,370 shares changed hands during trading, an increase of 92% from the average daily volume of 8,230,612 shares. The stock had previously closed at $723.00.

Specifically, CEO Gary E. Dickerson sold 20,000 shares of the stock in a transaction dated Tuesday, June 30th. The stock was sold at an average price of $735.22, for a total value of $14,704,400.00. Following the transaction, the chief executive officer directly 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 ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Gary E. Dickerson sold 58,321 shares of the firm’s stock in a transaction dated Monday, June 29th. The stock was sold at an average price of $700.36, for a total value of $40,845,695.56. Following the completion of the transaction, the chief executive officer 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. The SEC filing for this sale provides additional information.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently commented on AMAT shares. Barclays upped their target price on Applied Materials from $500.00 to $590.00 and gave the company an “overweight” rating in a research report on Thursday, June 11th. Royal Bank Of Canada lifted their price objective on shares of Applied Materials from $500.00 to $520.00 and gave the company an “outperform” rating in a research note on Friday, May 15th. Mizuho upped their price objective on shares of Applied Materials from $500.00 to $540.00 and gave the company an “outperform” rating in a report on Wednesday, May 27th. KeyCorp upped their price objective on shares of Applied Materials from $550.00 to $750.00 and gave the company an “overweight” rating in a report on Monday. Finally, Needham & Company LLC increased their price objective on shares of Applied Materials from $440.00 to $530.00 and gave the stock a “buy” rating in a research note on Friday, May 15th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-seven have given a Buy rating and seven have assigned a Hold rating to the company. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus price target of $553.56.

More Applied Materials News

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

• Positive Sentiment: Several analysts remained constructive on Applied Materials (AMAT), including reports of higher earnings estimates and a price target raise to as much as $900, reinforcing the view that AI-related chip spending could support growth. Article Title
• Positive Sentiment: Zacks Research upgraded AMAT from hold to strong-buy, adding to the bullish analyst backdrop. Article Title
• Neutral Sentiment: Coverage also highlighted Applied Materials as a key supplier benefiting from the AI buildout, with the company discussing DRAM and advanced packaging innovations tied to semiconductor growth. Article Title
• Neutral Sentiment: Michael Burry’s renewed short-bet headlines against chip stocks added a bearish macro backdrop for semis, but the reports were more sector-sentiment driven than company-specific. Article Title
• Negative Sentiment: Investors are questioning whether AMAT has gotten too expensive after a strong run, with commentary focusing on stretched valuation and the risk of profit-taking. Article Title
• Negative Sentiment: CEO Gary Dickerson disclosed stock sales totaling more than 78,000 shares over June 29-30, which can weigh on sentiment even though he still owns a very large stake. Article Title
• Negative Sentiment: Shares also came under pressure as semiconductor stocks pulled back amid fears that AI-driven chip demand may be cooling, which contributed to weakness in Applied Materials (AMAT). Article Title

Applied Materials Price Performance

The company has a market capitalization of $478.79 billion, a price-to-earnings ratio of 56.62, a P/E/G ratio of 1.81 and a beta of 1.57. The stock has a fifty day simple moving average of $495.52 and a 200-day simple 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.

Applied Materials (NASDAQ:AMAT) last released its quarterly earnings data on Thursday, May 14th. The manufacturing equipment provider reported $2.86 EPS for the quarter, topping the consensus estimate 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%.The business’s quarterly revenue was up 11.4% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $2.39 EPS. Applied Materials has set its Q3 2026 guidance at 3.160-3.560 EPS. On average, equities research analysts anticipate that Applied Materials, Inc. will post 12.11 EPS for the current year.

Applied Materials Dividend Announcement

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

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Cornerstone Financial Management LLC acquired a new stake in Applied Materials in the 4th quarter valued at $25,000. Wilkerson Advisory Group LLC acquired a new position in Applied Materials during the fourth quarter worth $26,000. Financial Freedom LLC purchased a new position in Applied Materials during the first quarter valued at $28,000. Highline Wealth Partners LLC lifted its holdings 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 valued at $30,000 after purchasing an additional 38 shares in the last quarter. Finally, Joseph Group Capital Management acquired a new stake in shares of Applied Materials in the fourth quarter valued at about $31,000. 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.