Applied Materials (NASDAQ:AMAT) Stock Price Down 3.7% – Time to Sell?

Applied Materials, Inc. (NASDAQ:AMAT) fell 3.7% during trading on Thursday. The company traded as low as $418.24 and last traded at $430.01. 12,119,000 shares traded hands during trading, an increase of 54% from the average daily volume of 7,888,926 shares. The stock had previously closed at $446.63.

More Applied Materials News

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

• Positive Sentiment: Applied Materials unveiled its $5 billion EPIC Center in Sunnyvale, California, described as the world’s largest semiconductor equipment and process-technology research facility. The center is intended to accelerate chip development and reduce the time required to bring new semiconductor technologies to market, with Intel, Micron, SK Hynix and Samsung among its partners. Applied Materials opens $5B semiconductor innovation center
• Positive Sentiment: Several analysts remain constructive. RBC reaffirmed its “outperform” rating with a $600 price target, while other coverage points to potential upside based on positive earnings-estimate revisions and strong demand for semiconductor manufacturing equipment. Wall Street Analysts Think Applied Materials Could Surge
• Positive Sentiment: Applied Materials’ broad wafer-fabrication equipment portfolio positions it to benefit as chipmakers expand capacity for artificial intelligence and other advanced applications. Recent earnings also showed 24.8% year-over-year revenue growth and an earnings beat, supporting the longer-term investment case. ASML vs. Applied Materials
• Neutral Sentiment: Analyst opinion is mixed: some firms are bullish, while comparison articles frame Applied Materials as a quality chip-equipment leader but note that valuation and competitive positioning must be weighed against alternatives such as ASML and Broadcom.
• Negative Sentiment: The immediate pressure appears tied to Applied Materials’ Investor Day. Commentary suggested that its 2030 financial targets were less ambitious or less specific than bullish investors expected, raising concerns that future growth and margin expansion may not justify the stock’s premium valuation. Why Applied Materials Sank Today
• Negative Sentiment: AMAT has also been affected by a broad selloff in semiconductor stocks and a six-session losing streak, amplifying the reaction to the Investor Day outlook. The stock is trading well below its 50-day and 200-day moving averages, adding technical pressure.

Wall Street Analyst Weigh In

A number of equities research analysts recently weighed in on the stock. Weiss Ratings lowered shares of Applied Materials from a “buy (b)” rating to a “buy (b-)” rating in a report on Wednesday, September 9th. Seaport Research Partners reiterated a “buy” rating and issued a $575.00 price objective (up from $500.00) on shares of Applied Materials in a report on Friday, August 14th. HC Wainwright set a $850.00 price objective on shares of Applied Materials in a research report on Monday, June 29th. B. Riley Financial reissued a “buy” rating and issued a $700.00 price objective (down from $790.00) on shares of Applied Materials in a research report on Friday, August 14th. Finally, Needham & Company LLC restated a “buy” rating and set a $740.00 target price on shares of Applied Materials in a research note on Friday, August 14th. One equities research analyst has rated the stock with a Strong Buy rating, thirty have assigned a Buy rating and eight have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $637.14.

Applied Materials Stock Down 3.7%

The company has a current ratio of 2.42, a quick ratio of 1.79 and a debt-to-equity ratio of 0.20. The stock has a market capitalization of $341.26 billion, a P/E ratio of 37.07, a P/E/G ratio of 1.29 and a beta of 1.60. The stock’s 50 day simple moving average is $485.07 and its 200 day simple moving average is $484.96.

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

Applied Materials Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, December 10th. Investors of record on Thursday, November 19th will be issued a $0.53 dividend. This represents a $2.12 annualized dividend and a yield of 0.5%. The ex-dividend date of this dividend is Thursday, November 19th. Applied Materials’s payout ratio is currently 18.28%.

Insider Buying and Selling at Applied Materials

In other news, CAO Adam Sanders sold 725 shares of Applied Materials stock in a transaction that occurred on Friday, October 2nd. The stock was sold at an average price of $544.56, for a total value of $394,806.00. Following the completion of the transaction, the chief accounting officer owned 3,181 shares in the company, valued at approximately $1,732,245.36. This trade represents a 18.56% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 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 that occurred on Tuesday, August 25th. The stock was sold at an average price of $479.25, for a total value of $3,594,375.00. Following the completion of the transaction, the chief financial officer owned 128,613 shares of the company’s stock, valued at approximately $61,637,780.25. The trade was a 5.51% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 9,225 shares of company stock worth $4,454,181 over the last quarter. 0.30% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Applied Materials

Large investors have recently added to or reduced their stakes in the company. Harborfront Financial Group LLC bought a new stake in Applied Materials in the second quarter valued at $27,000. Orion Capital Management LLC acquired a new stake in Applied Materials in the 2nd quarter valued at approximately $33,000. Highland Investment Advisors LLC acquired a new stake in Applied Materials in the 2nd quarter valued at approximately $33,000. BOK Financial Private Wealth Inc. bought a new stake in Applied Materials during the 2nd quarter valued at $41,000. Finally, Dakota Community Bank & Trust NA bought a new stake in Applied Materials during the 3rd quarter valued at $31,000. 80.56% of the stock is currently owned by institutional investors.

About Applied Materials

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.