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

Applied Materials, Inc. (NASDAQ:AMAT)’s share price gapped down prior to trading on Wednesday after an insider sold shares in the company. The stock had previously closed at $723.00, but opened at $668.41. Applied Materials shares last traded at $682.9620, with a volume of 2,509,317 shares changing hands.

Specifically, CEO Gary E. Dickerson sold 20,000 shares of the company’s stock in a transaction that occurred on Tuesday, June 30th. The shares were sold at an average price of $735.22, for a total transaction of $14,704,400.00. Following the transaction, the chief executive officer owned 1,599,843 shares in the company, valued at approximately $1,176,236,570.46. This represents a 1.23% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CEO Gary E. Dickerson sold 58,321 shares of Applied Materials stock in a transaction on Monday, June 29th. The stock was sold at an average price of $700.36, for a total transaction of $40,845,695.56. Following the sale, the chief executive officer owned 1,619,843 shares of the company’s stock, valued at $1,134,473,243.48. The trade was a 3.48% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing.

Analyst Ratings Changes

A number of brokerages recently issued reports on AMAT. Mizuho raised their target price on Applied Materials from $500.00 to $540.00 and gave the stock an “outperform” rating in a research note on Wednesday, May 27th. Wells Fargo & Company raised their price objective on Applied Materials from $715.00 to $740.00 and gave the stock an “overweight” rating in a research note on Friday, June 26th. Needham & Company LLC upped their target price on Applied Materials from $440.00 to $530.00 and gave the company a “buy” rating in a research report on Friday, May 15th. Susquehanna raised their price target on shares of Applied Materials from $575.00 to $900.00 and gave the stock a “positive” rating in a research report on Tuesday. Finally, HC Wainwright set a $850.00 price objective on shares of Applied Materials in a report on Monday. Twenty-seven research analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, Applied Materials presently has an average rating of “Moderate Buy” and a consensus target price of $553.56.

Key Applied Materials News

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

• Positive Sentiment: Applied Materials is being highlighted as a key beneficiary of AI infrastructure spending, with coverage emphasizing its role in DRAM and advanced packaging innovations that support next-generation semiconductor growth. Applied Materials, Inc. (AMAT) Discusses DRAM and Advanced Packaging Innovations for AI-Driven Semiconductor Growth Prepared Remarks Transcript
• Positive Sentiment: Investor sentiment was also supported by a Zacks list naming AMAT among the day’s top momentum stocks, reinforcing bullish technical momentum. Best Momentum Stocks to Buy for July 2nd
• Positive Sentiment: Market commentary continues to frame Applied Materials as a behind-the-scenes winner from the AI boom, which could help justify its elevated valuation if chip demand stays strong. Applied Materials Is Silently Powering the AI Boom. Here’s Why.
• Neutral Sentiment: Broader semiconductor stocks sold off as investors took profits after a strong first half, suggesting some of AMAT’s weakness may be sector-driven rather than company-specific. Why Applied Materials (AMAT) Shares Are Falling Today
• Neutral Sentiment: Another report noted AMAT fell more than the overall market in the latest session, but the move was tied to chip-sector weakness rather than a new earnings miss or guidance cut. Applied Materials (AMAT) Suffers a Larger Drop Than the General Market: Key Insights
• Negative Sentiment: CEO Gary Dickerson disclosed two sizable stock sales, including 20,000 shares sold at $735.22, which can weigh on investor sentiment even though he still retains a very large position. Applied Materials (NASDAQ:AMAT) CEO Sells $14,704,400.00 in Stock

Applied Materials Stock Down 7.4%

The company has a debt-to-equity ratio of 0.22, a quick ratio of 1.80 and a current ratio of 2.51. The firm has a market cap of $478.79 billion, a price-to-earnings ratio of 56.62, a PEG ratio of 1.81 and a beta of 1.57. The business’s 50 day moving average price is $495.52 and its 200 day moving average price is $389.39.

Applied Materials (NASDAQ:AMAT) last announced its quarterly earnings results on Thursday, May 14th. The manufacturing equipment provider reported $2.86 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.68 by $0.18. Applied Materials had a net margin of 29.31% and a return on equity of 36.97%. The firm had revenue of $7.91 billion for the quarter, compared to the consensus estimate of $7.68 billion. During the same period in the prior year, the firm posted $2.39 earnings per share. The firm’s quarterly revenue was up 11.4% compared to the same quarter last year. Applied Materials has set its Q3 2026 guidance at 3.160-3.560 EPS. On average, equities analysts forecast that Applied Materials, Inc. will post 12.11 EPS for the current year.

Applied Materials Announces Dividend

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

Institutional Trading of Applied Materials

Institutional investors and hedge funds have recently made changes to their positions in the business. Brighton Jones LLC lifted its position in shares of Applied Materials by 28.0% during the 4th quarter. Brighton Jones LLC now owns 12,674 shares of the manufacturing equipment provider’s stock valued at $2,061,000 after buying an additional 2,771 shares in the last quarter. Sivia Capital Partners LLC grew its position in shares of Applied Materials by 26.7% in the second quarter. Sivia Capital Partners LLC now owns 3,225 shares of the manufacturing equipment provider’s stock valued at $590,000 after purchasing an additional 679 shares during the period. Forefront Wealth Partners LLC acquired a new stake in shares of Applied Materials in the second quarter valued at about $410,000. Schnieders Capital Management LLC. increased its stake in shares of Applied Materials by 30.1% during the second quarter. Schnieders Capital Management LLC. now owns 15,003 shares of the manufacturing equipment provider’s stock worth $2,747,000 after purchasing an additional 3,469 shares in the last quarter. Finally, Sei Investments Co. increased its stake in shares of Applied Materials by 59.3% during the second quarter. Sei Investments Co. now owns 422,694 shares of the manufacturing equipment provider’s stock worth $77,383,000 after purchasing an additional 157,426 shares in the last quarter. 80.56% of the stock is currently owned by hedge funds and other institutional investors.

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.