Applied Materials (NASDAQ:AMAT) Trading Down 4.1% – Here’s Why

Applied Materials, Inc. (NASDAQ:AMAT)’s share price fell 4.1% during mid-day trading on Wednesday . The stock traded as low as $246.92 and last traded at $248.27. 7,687,749 shares changed hands during trading, an increase of 1% from the average session volume of 7,620,877 shares. The stock had previously closed at $258.84.

Wall Street Analysts Forecast Growth

A number of brokerages have commented on AMAT. Citigroup boosted their price objective on shares of Applied Materials from $205.00 to $250.00 and gave the stock a “buy” rating in a report on Friday, November 14th. Mizuho lifted their target price on Applied Materials from $205.00 to $245.00 and gave the stock a “neutral” rating in a research report on Wednesday. JPMorgan Chase & Co. increased their price target on Applied Materials from $220.00 to $260.00 and gave the company an “overweight” rating in a report on Friday, November 14th. Sanford C. Bernstein restated an “outperform” rating and set a $250.00 price objective on shares of Applied Materials in a research note on Friday, November 14th. Finally, KeyCorp lifted their price objective on Applied Materials from $240.00 to $285.00 and gave the stock an “overweight” rating in a report on Tuesday, December 2nd. Twenty research analysts have rated the stock with a Buy rating and fourteen have issued a Hold rating to the company’s stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $245.48.

Applied Materials Trading Down 4.1%

The company has a current ratio of 2.61, a quick ratio of 1.87 and a debt-to-equity ratio of 0.32. The company has a market cap of $196.86 billion, a price-to-earnings ratio of 28.60, a price-to-earnings-growth ratio of 2.71 and a beta of 1.67. The firm has a 50-day moving average price of $238.37 and a 200 day moving average price of $201.42.

Applied Materials (NASDAQ:AMAT) last issued its earnings results on Thursday, November 13th. The manufacturing equipment provider reported $2.17 earnings per share for the quarter, topping analysts’ consensus estimates of $2.11 by $0.06. Applied Materials had a net margin of 24.67% and a return on equity of 39.26%. The company had revenue of $6.80 billion for the quarter, compared to analysts’ expectations of $6.68 billion. During the same period in the prior year, the company earned $2.32 earnings per share. The firm’s revenue was down 3.5% compared to the same quarter last year. Applied Materials has set its Q1 2026 guidance at 1.980-2.380 EPS. As a group, sell-side analysts forecast that Applied Materials, Inc. will post 9.38 EPS for the current year.

Applied Materials Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, March 12th. Shareholders of record on Thursday, February 19th will be paid a $0.46 dividend. This represents a $1.84 dividend on an annualized basis and a yield of 0.7%. The ex-dividend date is Thursday, February 19th. Applied Materials’s payout ratio is presently 21.20%.

Insider Buying and Selling

In other news, SVP Teri A. Little sold 4,000 shares of the stock in a transaction that occurred on Tuesday, November 25th. The stock was sold at an average price of $238.24, for a total transaction of $952,960.00. Following the sale, the senior vice president directly owned 84,351 shares in the company, valued at approximately $20,095,782.24. This represents a 4.53% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CAO Adam Sanders sold 609 shares of the business’s stock in a transaction that occurred on Monday, December 1st. The shares were sold at an average price of $255.53, for a total value of $155,617.77. Following the transaction, the chief accounting officer owned 4,413 shares of the company’s stock, valued at $1,127,653.89. This represents a 12.13% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 8,609 shares of company stock worth $2,044,898 over the last quarter. Insiders own 0.24% of the company’s stock.

Hedge Funds Weigh In On Applied Materials

Several institutional investors have recently modified their holdings of AMAT. Brighton Jones LLC lifted its position in Applied Materials by 28.0% in the 4th quarter. Brighton Jones LLC now owns 12,674 shares of the manufacturing equipment provider’s stock valued at $2,061,000 after purchasing an additional 2,771 shares during the last quarter. Wellington Management Group LLP increased its stake in shares of Applied Materials by 1.1% in the first quarter. Wellington Management Group LLP now owns 93,253 shares of the manufacturing equipment provider’s stock valued at $13,533,000 after purchasing an additional 1,050 shares during the period. Colonial Trust Advisors increased its stake in shares of Applied Materials by 1.0% in the first quarter. Colonial Trust Advisors now owns 56,626 shares of the manufacturing equipment provider’s stock valued at $8,218,000 after purchasing an additional 585 shares during the period. Legacy Financial Advisors Inc. raised its holdings in shares of Applied Materials by 6.1% during the first quarter. Legacy Financial Advisors Inc. now owns 4,455 shares of the manufacturing equipment provider’s stock valued at $646,000 after buying an additional 255 shares during the last quarter. Finally, MIG Capital LLC acquired a new position in shares of Applied Materials during the first quarter worth approximately $529,000. Institutional investors own 80.56% of the company’s stock.

Applied Materials Company Profile

Applied Materials, Inc engages in the provision of manufacturing equipment, services, and software to the semiconductor, display, and related industries. The company operates through three segments: Semiconductor Systems, Applied Global Services, and Display and Adjacent Markets. The Semiconductor Systems segment develops, manufactures, and sells various manufacturing equipment that is used to fabricate semiconductor chips or integrated circuits.