Applied Materials (NASDAQ:AMAT) Stock Price Down 6.5% – Here’s What Happened

Applied Materials, Inc. (NASDAQ:AMAT)’s stock price traded down 6.5% during mid-day trading on Tuesday . The stock traded as low as $527.63 and last traded at $554.50. 12,224,569 shares traded hands during mid-day trading, an increase of 47% from the average daily volume of 8,303,085 shares. The stock had previously closed at $592.79.

Key Stories Impacting Applied Materials

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

• Positive Sentiment: Morgan Stanley raised its price target on Applied Materials to $647 from $502, while keeping an equal-weight rating, signaling higher expectations for the stock’s value. Applied Materials (NASDAQ:AMAT) Given New $647.00 Price Target at Morgan Stanley
• Positive Sentiment: Goldman Sachs also lifted its price target on AMAT to $645, reinforcing bullish Street sentiment around chip equipment demand. 2 Chip Stocks Driving Today’s Rally With Lofty Bull Notes
• Positive Sentiment: Zacks highlighted AMAT as a strong momentum name and said AI-driven demand, broad product exposure, and earnings momentum still support further upside. Best Momentum Stock to Buy for July 7th
• Positive Sentiment: Analysts and market commentary continue to frame Applied Materials as a beneficiary of AI infrastructure spending, including new AI-related product development such as its SENZ platform for smart glasses. Applied Materials (AMAT) Unveils AI-Powered SENZ Platform to Accelerate Smart Glasses Development
• Neutral Sentiment: Applied Materials has also been a high-momentum stock lately, with coverage noting it has risen sharply from its 52-week low; that strength can attract buyers, but it also leaves the shares susceptible to periodic cooling off. AMAT Stock Rises 284% From Its 52-Week Low: Should You Buy Now?
• Negative Sentiment: AMAT is falling alongside other chip stocks after a broader semiconductor selloff tied to Samsung-related industry concerns, which is weighing on the entire group. Intel and Applied Materials Dive 10%…
• Negative Sentiment: Investors are also rotating out of memory-related names as the sector slips into a bear market, adding to the weak sentiment around chip suppliers. Micron, Samsung, SK Hynix just dragged memory stocks into a bear market

Analyst Ratings Changes

Several brokerages recently issued reports on AMAT. HC Wainwright set a $850.00 target price on shares of Applied Materials in a report on Monday, June 29th. UBS Group increased their price target on Applied Materials from $515.00 to $570.00 and gave the stock a “buy” rating in a research report on Wednesday, June 10th. Stifel Nicolaus set a $530.00 price objective on Applied Materials in a research note on Friday, May 15th. Raymond James Financial set a $650.00 price objective on Applied Materials in a report on Wednesday, June 10th. Finally, Susquehanna upped their target price on Applied Materials from $575.00 to $900.00 and gave the stock a “positive” rating in a research note on Tuesday, June 30th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-seven have assigned a Buy rating and six have given a Hold rating to the company’s stock. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of $569.65.

Applied Materials Stock Down 6.5%

The company has a market cap of $440.25 billion, a price-to-earnings ratio of 52.07, a PEG ratio of 1.68 and a beta of 1.57. The business has a fifty day moving average of $499.51 and a two-hundred day moving average of $391.80. The company has a current ratio of 2.51, a quick ratio of 1.80 and a debt-to-equity ratio of 0.22.

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

Applied Materials Dividend Announcement

The business also recently declared 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 of this dividend is Thursday, August 20th. Applied Materials’s payout ratio is presently 19.91%.

Insider Buying and Selling at Applied Materials

In related news, CEO Gary E. Dickerson sold 71,727 shares of the company’s stock in a transaction dated Tuesday, June 16th. The shares were sold at an average price of $593.75, for a total transaction of $42,587,906.25. Following the completion of the transaction, the chief executive officer owned 1,695,164 shares in the company, valued at $1,006,503,625. This represents a 4.06% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Prabu G. Raja sold 50,000 shares of Applied Materials stock in a transaction dated Thursday, June 4th. The stock was sold at an average price of $505.28, for a total value of $25,264,000.00. Following the completion of the sale, the insider owned 356,642 shares in the company, valued at approximately $180,204,069.76. The trade was a 12.30% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 278,088 shares of company stock valued at $169,654,805. Insiders own 0.30% of the company’s stock.

Institutional Trading of Applied Materials

Large investors have recently made changes to their positions in the company. Baron Wealth Management LLC acquired a new stake in Applied Materials during the 2nd quarter worth $205,000. GK Wealth Management LLC purchased a new position in shares of Applied Materials in the second quarter worth about $295,000. GAMMA Investing LLC boosted its position in Applied Materials by 10.0% during the second quarter. GAMMA Investing LLC now owns 24,813 shares of the manufacturing equipment provider’s stock worth $17,939,000 after acquiring an additional 2,247 shares during the last quarter. Grant Private Wealth Management Inc boosted its position in Applied Materials by 36.1% during the second quarter. Grant Private Wealth Management Inc now owns 2,900 shares of the manufacturing equipment provider’s stock worth $2,097,000 after acquiring an additional 769 shares during the last quarter. Finally, Avior Wealth Management LLC grew its stake in Applied Materials by 0.8% during the 2nd quarter. Avior Wealth Management LLC now owns 3,354 shares of the manufacturing equipment provider’s stock valued at $2,425,000 after acquiring an additional 27 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.