Applied Materials (NASDAQ:AMAT) Trading Down 4.2% – What’s Next?

Applied Materials, Inc. (NASDAQ:AMAT) traded down 4.2% during mid-day trading on Monday . The stock traded as low as $320.69 and last traded at $323.12. 6,543,193 shares traded hands during mid-day trading, a decline of 16% from the average session volume of 7,776,845 shares. The stock had previously closed at $337.17.

Analysts Set New Price Targets

Several research analysts recently commented on AMAT shares. B. Riley Financial reaffirmed a “buy” rating and issued a $450.00 price objective (up from $400.00) on shares of Applied Materials in a report on Friday, February 13th. Erste Group Bank raised shares of Applied Materials to a “hold” rating in a report on Tuesday, March 24th. Summit Insights raised Applied Materials from a “hold” rating to a “buy” rating in a report on Friday, February 13th. Needham & Company LLC lifted their price target on Applied Materials from $390.00 to $440.00 and gave the company a “buy” rating in a research report on Friday, February 13th. Finally, Wells Fargo & Company boosted their price objective on Applied Materials from $350.00 to $435.00 and gave the company an “overweight” rating in a research note on Friday, February 13th. One investment 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 stock. According to MarketBeat.com, Applied Materials currently has an average rating of “Moderate Buy” and a consensus target price of $363.46.

Applied Materials Stock Up 3.5%

The company has a current ratio of 2.71, a quick ratio of 1.94 and a debt-to-equity ratio of 0.30. The firm has a market cap of $280.78 billion, a P/E ratio of 36.21, a price-to-earnings-growth ratio of 1.44 and a beta of 1.65. The stock’s fifty day moving average is $345.44 and its two-hundred day moving average is $279.09.

Applied Materials (NASDAQ:AMAT) last released its quarterly earnings results on Thursday, February 12th. The manufacturing equipment provider reported $2.38 EPS for the quarter, beating analysts’ consensus estimates of $2.21 by $0.17. The firm had revenue of $7.01 billion during the quarter, compared to analyst estimates of $6.88 billion. Applied Materials had a net margin of 27.78% and a return on equity of 37.52%. The business’s revenue for the quarter was down 2.1% on a year-over-year basis. During the same period in the previous year, the business earned $2.38 EPS. Applied Materials has set its Q2 2026 guidance at 2.440-2.840 EPS. As a group, research analysts anticipate that Applied Materials, Inc. will post 9.38 earnings per share for the current year.

Applied Materials Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, June 11th. Investors of record on Thursday, May 21st will be given a dividend of $0.53 per share. The ex-dividend date is Thursday, May 21st. This is a positive change from Applied Materials’s previous quarterly dividend of $0.46. This represents a $2.12 annualized dividend and a yield of 0.6%. Applied Materials’s dividend payout ratio (DPR) is presently 18.83%.

Insiders Place Their Bets

In other news, CAO Adam Sanders sold 534 shares of Applied Materials stock in a transaction dated Tuesday, February 24th. The stock was sold at an average price of $379.16, for a total transaction of $202,471.44. Following the completion of the sale, the chief accounting officer owned 4,625 shares in the company, valued at approximately $1,753,615. This trade represents a 10.35% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Judy Bruner sold 3,969 shares of the business’s stock in a transaction dated Monday, February 23rd. The stock was sold at an average price of $377.02, for a total value of $1,496,392.38. Following the transaction, the director directly owned 28,589 shares of the company’s stock, valued at $10,778,624.78. The trade was a 12.19% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 12,003 shares of company stock worth $4,484,189 in the last ninety days. 0.30% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Applied Materials

Several hedge funds have recently bought and sold shares of AMAT. Old North State Trust LLC bought a new stake in shares of Applied Materials during the 4th quarter worth $240,000. Forty three Eighteen Advisors LLC bought a new position in Applied Materials in the fourth quarter valued at $2,533,000. Fund Advisors of America Inc FL purchased a new stake in Applied Materials during the fourth quarter valued at about $316,000. World Investment Advisors raised its position in Applied Materials by 4.5% during the fourth quarter. World Investment Advisors now owns 82,296 shares of the manufacturing equipment provider’s stock valued at $21,149,000 after purchasing an additional 3,508 shares in the last quarter. Finally, Meadowbrook Advisors Group LLC bought a new stake in Applied Materials during the fourth quarter worth about $562,000. 80.56% of the stock is currently owned by 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.