Applied Materials (NASDAQ:AMAT) Shares Down 6.2% – Here’s What Happened

Applied Materials, Inc. (NASDAQ:AMAT) shares fell 6.2% on Friday . The stock traded as low as $622.00 and last traded at $626.84. Approximately 27,465,281 shares traded hands during mid-day trading, an increase of 242% from the average daily volume of 8,033,927 shares. The stock had previously closed at $668.00.

Trending Headlines about Applied Materials

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

• Positive Sentiment: Applied Materials introduced new systems for DRAM and advanced packaging, expanding its role in AI chip manufacturing and potentially boosting future demand. Applied Materials Introduces New Systems to Accelerate DRAM and Advanced Packaging for AI Chips
• Positive Sentiment: Analysts said AMAT’s event highlighted strong opportunities in DRAM and advanced packaging, reinforcing the company’s AI-driven growth narrative. Applied Materials’ event focuses on DRAM, and advanced packaging: analysts
• Positive Sentiment: Wall Street commentary remains constructive, with analysts still confident in Applied Materials’ strong competitive position. AMAT stock gets thumbs up from Wall Street – analysts remain confident about Applied Materials’ strong market position
• Neutral Sentiment: Some coverage suggests the stock may be looking expensive after its recent rally, which could limit near-term upside even if the long-term AI story stays intact. Applied Materials stock looks pricey—can AI demand justify the rally?
• Neutral Sentiment: One analysis noted that Applied Materials’ aggressive investment strategy may pressure cash flow in the near term, even though it supports longer-term growth. Can AMAT’s Investment Strategy Lift Future Cash Flow Growth?

Analyst Upgrades and Downgrades

A number of analysts recently commented on the stock. B. Riley Financial upped their price target on shares of Applied Materials from $550.00 to $790.00 and gave the company a “buy” rating in a research note on Friday. KeyCorp raised their price objective on shares of Applied Materials from $450.00 to $550.00 and gave the stock an “overweight” rating in a report on Friday, May 15th. Erste Group Bank upgraded shares of Applied Materials from a “hold” rating to a “buy” rating in a research note on Monday, April 27th. HSBC began coverage on shares of Applied Materials in a report on Friday, May 8th. They set a “buy” rating and a $517.00 target price on the stock. Finally, Zacks Research lowered Applied Materials from a “strong-buy” rating to a “hold” rating in a report on Monday, April 27th. Twenty-seven analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the company’s stock. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $518.19.

Applied Materials Price Performance

The business’s 50-day moving average price is $473.54 and its 200 day moving average price is $377.36. The company has a quick ratio of 1.80, a current ratio of 2.51 and a debt-to-equity ratio of 0.22. The company has a market capitalization of $497.69 billion, a P/E ratio of 58.86, a price-to-earnings-growth ratio of 1.74 and a beta of 1.67.

Applied Materials (NASDAQ:AMAT) last issued its quarterly earnings data on Thursday, May 14th. The manufacturing equipment provider reported $2.86 EPS for the quarter, beating the consensus estimate of $2.68 by $0.18. Applied Materials had a net margin of 29.31% and a return on equity of 36.97%. The company had revenue of $7.91 billion during the quarter, compared to analysts’ expectations of $7.68 billion. During the same quarter in the previous year, the company earned $2.39 earnings per share. Applied Materials’s revenue for the quarter was up 11.4% on a year-over-year basis. Applied Materials has set its Q3 2026 guidance at 3.160-3.560 EPS. Analysts anticipate that Applied Materials, Inc. will post 12.1 EPS for the current fiscal year.

Applied Materials Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Thursday, August 20th will be issued a $0.53 dividend. The ex-dividend date of this dividend is Thursday, August 20th. This represents a $2.12 annualized dividend and a dividend yield of 0.3%. Applied Materials’s dividend payout ratio is presently 19.91%.

Insider Transactions at Applied Materials

In related news, CEO Gary E. Dickerson sold 71,727 shares of the business’s stock in a transaction dated Tuesday, June 16th. The stock was sold at an average price of $593.75, for a total transaction of $42,587,906.25. Following the completion of the transaction, the chief executive officer directly owned 1,695,164 shares in the company, valued at $1,006,503,625. The trade was a 4.06% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, SVP Timothy M. Deane sold 8,621 shares of the company’s stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $590.76, for a total value of $5,092,941.96. Following the completion of the transaction, the senior vice president owned 134,631 shares in the company, valued at $79,534,609.56. This represents a 6.02% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders have sold 199,767 shares of company stock valued at $114,104,709. Corporate insiders own 0.30% of the company’s stock.

Institutional Trading of Applied Materials

A number of large investors have recently modified their holdings of the business. Capital Research Global Investors raised its stake in Applied Materials by 119.8% in the fourth quarter. Capital Research Global Investors now owns 32,707,049 shares of the manufacturing equipment provider’s stock valued at $8,405,458,000 after purchasing an additional 17,829,377 shares in the last quarter. Norges Bank purchased a new position in Applied Materials in the 4th quarter worth approximately $2,858,543,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its holdings in shares of Applied Materials by 617.2% in the 3rd quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 9,129,483 shares of the manufacturing equipment provider’s stock worth $1,869,170,000 after buying an additional 7,856,576 shares during the last quarter. Ameriprise Financial Inc. increased its holdings 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 worth $2,563,376,000 after buying an additional 3,583,751 shares during the last quarter. Finally, Auto Owners Insurance Co raised its position in shares of Applied Materials by 25,824.4% during the 4th quarter. Auto Owners Insurance Co now owns 3,370,167 shares of the manufacturing equipment provider’s stock valued at $86,610,000 after buying an additional 3,357,167 shares in the last quarter. Institutional investors own 80.56% of the company’s stock.

About Applied Materials

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.