Applied Materials (NASDAQ:AMAT) Shares Gap Down – Here’s Why

Applied Materials, Inc. (NASDAQ:AMAT) gapped down prior to trading on Tuesday . The stock had previously closed at $592.79, but opened at $545.35. Applied Materials shares last traded at $538.6020, with a volume of 2,316,241 shares traded.

Key Headlines Impacting Applied Materials

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

• Positive Sentiment: Applied Materials was added to Zacks’ Rank #1 (Strong Buy) momentum stock list for July 7, which may support investor interest in the name. Best Momentum Stock to Buy for July 7th
• Positive Sentiment: Morgan Stanley raised its price target on Applied Materials to $647 from $502, signaling continued analyst confidence even though the firm kept an equal-weight rating. Applied Materials Given New $647.00 Price Target at Morgan Stanley
• Positive Sentiment: Goldman Sachs also lifted its target on AMAT to $645, helping drive a broader chip-stock rally earlier in the session. 2 Chip Stocks Driving Today’s Rally With Lofty Bull Notes
• Positive Sentiment: Applied Materials’ AI-related product momentum remains a theme after it unveiled the SENZ platform to speed smart-glasses development, reinforcing its positioning in AI-enabled hardware. Applied Materials Unveils AI-Powered SENZ Platform to Accelerate Smart Glasses Development
• Neutral Sentiment: Several recent articles highlighted AMAT as a popular and “best stocks on the rise” candidate, but these pieces are largely sentiment-driven rather than tied to a specific new operational catalyst. Is Applied Materials One of the Best Stocks on the Rise to Invest In?
• Negative Sentiment: Chip stocks, including Applied Materials, were pressured by a broader semiconductor selloff after Samsung earnings triggered risk-off trading across the group. Intel and Applied Materials Dive 10%, AMD Craters 8% as Samsung Earnings Trigger Chip Selloff

Analyst Ratings Changes

Several research firms have issued reports on AMAT. Mizuho raised their price target on shares of Applied Materials from $500.00 to $540.00 and gave the stock an “outperform” rating in a research report on Wednesday, May 27th. Argus increased their target price on shares of Applied Materials from $420.00 to $500.00 and gave the company a “buy” rating in a research note on Tuesday, May 19th. TD Cowen lifted their target price on Applied Materials from $450.00 to $525.00 and gave the stock a “buy” rating in a research report on Friday, May 15th. Stifel Nicolaus set a $530.00 price target on Applied Materials in a research note on Friday, May 15th. Finally, The Goldman Sachs Group upped their price target on Applied Materials from $390.00 to $520.00 and gave the company a “buy” rating in a report on Friday, May 15th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-seven have given a Buy rating and six have given a Hold rating to the stock. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $569.65.

Applied Materials Stock Performance

The firm has a market capitalization of $430.45 billion, a price-to-earnings ratio of 50.88, a price-to-earnings-growth ratio of 1.68 and a beta of 1.57. The firm’s 50-day moving average price is $499.51 and its two-hundred day moving average price is $391.80. The company has a debt-to-equity ratio of 0.22, a quick ratio of 1.80 and a current ratio of 2.51.

Applied Materials (NASDAQ:AMAT) last released its quarterly earnings data 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. Applied Materials had a return on equity of 36.97% and a net margin of 29.31%.The firm had revenue of $7.91 billion during the quarter, compared to analyst estimates of $7.68 billion. During the same period in the prior year, the company posted $2.39 earnings per share. The business’s revenue for the quarter was up 11.4% compared to the same quarter last year. Applied Materials has set its Q3 2026 guidance at 3.160-3.560 EPS. Sell-side analysts predict that Applied Materials, Inc. will post 12.11 earnings per share for the current year.

Applied Materials Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Thursday, August 20th will be given a dividend of $0.53 per share. The ex-dividend date is Thursday, August 20th. This represents a $2.12 dividend on an annualized basis and a yield of 0.4%. Applied Materials’s dividend payout ratio is 19.91%.

Insider Activity

In other Applied Materials news, Director Thomas J. Iannotti sold 9,250 shares of Applied Materials stock in a transaction on Tuesday, June 16th. The stock was sold at an average price of $599.77, for a total value of $5,547,872.50. Following the completion of the transaction, the director owned 40,559 shares in the company, valued at approximately $24,326,071.43. The trade was a 18.57% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CEO Gary E. Dickerson sold 20,000 shares of Applied Materials stock in a transaction dated Tuesday, June 30th. The shares were sold at an average price of $735.22, for a total value of $14,704,400.00. Following the completion of the transaction, the chief executive officer directly owned 1,599,843 shares of the company’s stock, valued at $1,176,236,570.46. This represents a 1.23% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 278,088 shares of company stock worth $169,654,805. 0.30% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Applied Materials

Hedge funds and other institutional investors have recently made changes to their positions in the company. Cornerstone Financial Management LLC acquired a new position in shares of Applied Materials during the fourth quarter valued at $25,000. Wilkerson Advisory Group LLC acquired a new stake in Applied Materials in the fourth quarter worth about $26,000. Financial Freedom LLC bought a new stake in Applied Materials during the 1st quarter worth about $28,000. Highline Wealth Partners LLC lifted its position in Applied Materials by 48.7% during the 4th quarter. Highline Wealth Partners LLC now owns 116 shares of the manufacturing equipment provider’s stock valued at $30,000 after purchasing an additional 38 shares during the period. Finally, Joseph Group Capital Management acquired a new position in Applied Materials during the 4th quarter valued at about $31,000. 80.56% of the stock is owned by institutional investors and hedge funds.

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.