Applied Materials (NASDAQ:AMAT) Stock Price Down 1.3% Following Analyst Downgrade

Shares of Applied Materials, Inc. (NASDAQ:AMAT) dropped 1.3% during trading on Thursday after Erste Group Bank downgraded the stock from a buy rating to a hold rating. The stock traded as low as $511.05 and last traded at $527.48. 4,104,530 shares traded hands during trading, a decline of 50% from the average daily volume of 8,238,845 shares. The stock had previously closed at $534.24.

Several other research firms have also issued reports on AMAT. Deutsche Bank Aktiengesellschaft increased their price objective on shares of Applied Materials from $450.00 to $550.00 and gave the stock a “buy” rating in a research report on Friday, May 15th. Weiss Ratings reiterated a “buy (b-)” rating on shares of Applied Materials in a research note on Wednesday, June 24th. Stifel Nicolaus increased their price target on shares of Applied Materials from $530.00 to $650.00 and gave the stock a “buy” rating in a research report on Friday, July 10th. JPMorgan Chase & Co. lifted their price objective on shares of Applied Materials from $400.00 to $515.00 and gave the stock an “overweight” rating in a report on Friday, May 15th. Finally, The Goldman Sachs Group reaffirmed a “buy” rating and set a $645.00 target price on shares of Applied Materials in a report on Monday. One research analyst has rated the stock with a Strong Buy rating, twenty-six have given a Buy rating and seven have issued a Hold rating to the company’s stock. According to MarketBeat, Applied Materials currently has an average rating of “Moderate Buy” and an average target price of $603.23.

Insider Transactions at Applied Materials

In other Applied Materials news, SVP Omkaram Nalamasu sold 24,263 shares of the stock in a transaction on Tuesday, June 16th. The stock was sold at an average price of $593.43, for a total transaction of $14,398,392.09. Following the completion of the transaction, the senior vice president directly owned 146,916 shares of the company’s stock, valued at approximately $87,184,361.88. This trade represents a 14.17% 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 10,000 shares of the firm’s stock in a transaction dated Thursday, June 18th. The shares were sold at an average price of $633.53, for a total value of $6,335,300.00. Following the transaction, the insider directly owned 346,642 shares of the company’s stock, valued at $219,608,106.26. This represents a 2.80% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 278,088 shares of company stock valued at $169,654,805 over the last three months. 0.30% of the stock is owned by company insiders.

Key Applied Materials News

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

• Positive Sentiment: AI infrastructure demand supports the long-term outlook. Analysts at Citi reportedly named Applied Materials a top semiconductor pick, arguing that an early-stage AI upcycle could benefit chip-equipment suppliers. Applied Materials’ deposition, etch, inspection and packaging tools are critical to advanced memory, logic and AI-chip production. Citi Analysts See Golden Opportunity in Semiconductor Selloff
• Positive Sentiment: Wall Street is expecting earnings growth ahead of the Aug. 13 report. Forecasts call for a year-over-year improvement, and analysts see potential for a beat based on earnings estimates and recent business momentum. The company previously exceeded expectations with quarterly EPS of $2.86 and revenue of $7.91 billion. Applied Materials Reports Next Week
• Positive Sentiment: Analysts continue to identify substantial upside. The average price target cited in recent coverage is approximately $629, while a more bullish Susquehanna forecast implies considerably greater gains. Applied Materials Fell 11% Last Month
• Neutral Sentiment: The Aug. 13 earnings release is the key near-term catalyst. Expectations are high because of AI-driven demand for memory, logic and advanced packaging, but the stock’s reaction will depend on guidance, order trends and whether results justify the optimism. Applied Materials Earnings on August 13
• Negative Sentiment: Valuation and event risk are limiting enthusiasm. With a price-to-earnings ratio near 50 and a sharp rebound from its recent low, investors may be taking profits ahead of a potentially volatile earnings reaction. What Determines Applied Materials’ Resilience on August 13 Earnings
• Negative Sentiment: Bearish sentiment increased after a downgrade and reported short position. Erste Group Bank moved its rating from “buy” to “hold,” while reports that investor Michael Burry is short AMAT add pressure to the shares and highlight concerns about an AI-related market correction. Applied Materials Faces Fresh Scrutiny After Michael Burry Short Bet

Institutional Trading of Applied Materials

Several large investors have recently added to or reduced their stakes in the company. JFS Wealth Advisors LLC raised its position in shares of Applied Materials by 4.3% in the second quarter. JFS Wealth Advisors LLC now owns 409 shares of the manufacturing equipment provider’s stock valued at $296,000 after buying an additional 17 shares during the last quarter. Innovative Asset Advisors Group LLC boosted its position in shares of Applied Materials by 2.1% during the 2nd quarter. Innovative Asset Advisors Group LLC now owns 961 shares of the manufacturing equipment provider’s stock valued at $695,000 after acquiring an additional 20 shares during the last quarter. Stonebridge Financial Group LLC grew its holdings in shares of Applied Materials by 2.1% in the second quarter. Stonebridge Financial Group LLC now owns 1,003 shares of the manufacturing equipment provider’s stock valued at $725,000 after purchasing an additional 21 shares during the period. Basecamp Wealth Advisors LLC grew its holdings in shares of Applied Materials by 0.7% in the first quarter. Basecamp Wealth Advisors LLC now owns 3,288 shares of the manufacturing equipment provider’s stock valued at $1,124,000 after purchasing an additional 22 shares during the period. Finally, Financial Management Professionals Inc. raised its stake in Applied Materials by 2.2% during the second quarter. Financial Management Professionals Inc. now owns 1,040 shares of the manufacturing equipment provider’s stock worth $752,000 after purchasing an additional 22 shares during the period. 80.56% of the stock is owned by institutional investors and hedge funds.

Applied Materials Stock Down 1.3%

The company has a market capitalization of $418.80 billion, a price-to-earnings ratio of 49.53, a price-to-earnings-growth ratio of 1.39 and a beta of 1.61. The company has a current ratio of 2.51, a quick ratio of 1.80 and a debt-to-equity ratio of 0.22. The firm’s fifty day simple moving average is $556.14 and its two-hundred day simple moving average is $435.59.

Applied Materials (NASDAQ:AMAT) last posted its earnings results on Thursday, May 14th. The manufacturing equipment provider reported $2.86 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.68 by $0.18. The company had revenue of $7.91 billion during the quarter, compared to analysts’ expectations of $7.68 billion. Applied Materials had a return on equity of 36.97% and a net margin of 29.31%.The firm’s quarterly revenue was up 11.4% compared to the same quarter last year. During the same quarter last year, the firm earned $2.39 earnings per share. Applied Materials has set its Q3 2026 guidance at 3.160-3.560 EPS. Sell-side analysts anticipate that Applied Materials, Inc. will post 12.14 EPS for the current year.

Applied Materials Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Thursday, August 20th will be issued a $0.53 dividend. 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 19.91%.

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.