Applied Materials (NASDAQ:AMAT) Shares Down 2.1% – Here’s Why

Applied Materials, Inc. (NASDAQ:AMAT)’s stock price fell 2.1% during mid-day trading on Thursday. The company traded as low as $502.65 and last traded at $509.57. 6,317,167 shares were traded during mid-day trading, a decline of 20% from the average session volume of 7,888,742 shares. The stock had previously closed at $520.65.

Trending Headlines about Applied Materials

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

• Positive Sentiment: Applied Materials announced that UCLA’s Samueli School of Engineering will join its EPIC Center to accelerate semiconductor research, process development and commercialization. The collaboration could strengthen the company’s technology pipeline and relationships with chip manufacturers. Applied Materials and UCLA Engineering Accelerate Semiconductor Innovation at the EPIC Center
• Positive Sentiment: Strong planned capital spending by TSMC—potentially reaching $64 billion—supports the outlook for semiconductor manufacturing-equipment suppliers. An Applied Materials veteran suggested TSMC may still need to invest more to meet demand, which could create additional opportunities for AMAT. TSMC Plans Up to $64 Billion in Capex
• Positive Sentiment: Analyst commentary points to improving momentum in Applied Materials’ Applied Global Services business, supported by AI-enabled services, recurring revenue and sustained fabrication-facility demand through 2030. Recent comparisons also indicate AMAT’s revenue growth trajectory has strengthened relative to Qualcomm and Marvell Technology.
• Positive Sentiment: Recent quarterly results provide fundamental support: earnings and revenue exceeded consensus estimates, while revenue increased 24.8% year over year. Management’s fourth-quarter fiscal 2026 earnings guidance also implies continued growth.
• Neutral Sentiment: Brokerage recommendations remain favorable, but the reports caution that average analyst ratings can be overly optimistic and should not be treated as a standalone buy signal. Brokers Suggest Investing in Applied Materials
• Neutral Sentiment: A short-interest update reported zero shares sold short and a zero-day days-to-cover ratio, although the wording describing a “significant increase” appears inconsistent with the reported figures. The data therefore offers little reliable directional information.
• Negative Sentiment: Applied Materials underperformed the broader market in the latest session, falling about 2.1%. Reports also linked the weakness to insider selling, which can raise concerns about near-term sentiment even when it does not change the company’s fundamentals. Applied Materials Stock Falls After Insider Selling
• Negative Sentiment: A member of Congress sold AMAT less than two months after purchasing it and missed a subsequent rally. While the transaction is not a fundamental development, the attention surrounding the sale may add to investor scrutiny. Congressman Sells Applied Materials Stock Before Recent Rally

Analyst Upgrades and Downgrades

A number of analysts have commented on the stock. Susquehanna increased their price target on shares of Applied Materials from $575.00 to $900.00 and gave the company a “positive” rating in a research note on Tuesday, June 30th. Craig Hallum raised their target price on shares of Applied Materials from $530.00 to $585.00 and gave the company a “buy” rating in a research note on Friday, August 14th. Royal Bank Of Canada lifted their price target on Applied Materials from $520.00 to $600.00 and gave the stock an “outperform” rating in a report on Friday, August 14th. Needham & Company LLC restated a “buy” rating and issued a $740.00 price objective on shares of Applied Materials in a research note on Friday, August 14th. Finally, The Goldman Sachs Group upped their price objective on Applied Materials from $645.00 to $670.00 and gave the company a “buy” rating in a research note on Friday, August 14th. One research analyst has rated the stock with a Strong Buy rating, thirty have given a Buy rating and eight have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, Applied Materials presently has an average rating of “Moderate Buy” and an average price target of $640.20.

Applied Materials Stock Down 0.5%

The company has a debt-to-equity ratio of 0.20, a quick ratio of 1.79 and a current ratio of 2.42. The company has a market capitalization of $402.38 billion, a P/E ratio of 43.71, a price-to-earnings-growth ratio of 1.42 and a beta of 1.60. The firm’s fifty day moving average is $488.88 and its 200-day moving average is $481.82.

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

Applied Materials Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, December 10th. Investors of record on Thursday, November 19th will be given a $0.53 dividend. The ex-dividend date of this dividend is Thursday, November 19th. This represents a $2.12 annualized dividend and a yield of 0.4%. Applied Materials’s dividend payout ratio (DPR) is presently 18.28%.

Insider Buying and Selling at Applied Materials

In related news, CAO Adam Sanders sold 725 shares of the company’s stock in a transaction dated Friday, October 2nd. The shares were sold at an average price of $544.56, for a total value of $394,806.00. Following the sale, the chief accounting officer owned 3,181 shares in the company, valued at $1,732,245.36. This represents a 18.56% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Brice Hill sold 7,500 shares of Applied Materials stock in a transaction dated Tuesday, August 25th. The shares were sold at an average price of $479.25, for a total value of $3,594,375.00. Following the transaction, the chief financial officer owned 128,613 shares of the company’s stock, valued at $61,637,780.25. This trade represents a 5.51% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders have sold 9,225 shares of company stock valued at $4,454,181. Corporate insiders own 0.30% of the company’s stock.

Institutional Investors Weigh In On Applied Materials

Several institutional investors have recently bought and sold shares of AMAT. JFS Wealth Advisors LLC boosted its position in Applied Materials by 4.3% during the 2nd quarter. JFS Wealth Advisors LLC now owns 409 shares of the manufacturing equipment provider’s stock valued at $296,000 after acquiring an additional 17 shares in the last quarter. Innovative Asset Advisors Group LLC raised its holdings in Applied Materials by 2.1% in the second quarter. Innovative Asset Advisors Group LLC now owns 961 shares of the manufacturing equipment provider’s stock worth $695,000 after purchasing an additional 20 shares in the last quarter. Stonebridge Financial Group LLC boosted its holdings in shares of Applied Materials by 2.1% in the 2nd quarter. Stonebridge Financial Group LLC now owns 1,003 shares of the manufacturing equipment provider’s stock valued at $725,000 after buying an additional 21 shares in the last quarter. N.E.W. Advisory Services LLC raised its stake in shares of Applied Materials by 5.9% during the 2nd quarter. N.E.W. Advisory Services LLC now owns 377 shares of the manufacturing equipment provider’s stock worth $273,000 after acquiring an additional 21 shares in the last quarter. Finally, IMG Wealth Management Inc. lifted its holdings in shares of Applied Materials by 13.0% during the 2nd quarter. IMG Wealth Management Inc. now owns 183 shares of the manufacturing equipment provider’s stock valued at $132,000 after purchasing an additional 21 shares during the last quarter. Institutional investors own 80.56% of the company’s stock.

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.