Applied Materials (NASDAQ:AMAT) Shares Down 3.6% – Time to Sell?

Applied Materials, Inc. (NASDAQ:AMAT) shares dropped 3.6% during mid-day trading on Thursday. The stock traded as low as $376.09 and last traded at $380.95. 8,654,606 shares changed hands during mid-day trading, an increase of 9% from the average daily volume of 7,926,090 shares. The stock had previously closed at $395.08.

Trending Headlines about Applied Materials

Investors following AMAT have been watching these headlines:

• Positive Sentiment: HSBC reaffirmed its Buy rating ahead of earnings, pointing to potential upside after the recent selloff. HSBC says buy the dip
• Neutral Sentiment: Analysts reportedly expect about $4.06 in Q4 EPS and $10.3 billion in revenue. Investors will focus on results versus those expectations, as well as DRAM and foundry demand and management’s fiscal 2027 outlook. Analyst forecasts ahead of earnings
• Neutral Sentiment: Options traders are positioning for a potentially large post-earnings move, signaling heightened volatility rather than a clear direction. Options traders expect a major move

Analyst Upgrades and Downgrades

Several brokerages recently commented on AMAT. Zacks Research downgraded shares of Applied Materials from a “strong-buy” rating to a “hold” rating in a research report on Thursday, October 15th. Morgan Stanley decreased their target price on shares of Applied Materials from $563.00 to $538.00 and set an “equal weight” rating for the company in a report on Tuesday, November 3rd. William Blair initiated coverage on shares of Applied Materials in a report on Tuesday, August 11th. They issued a “market perform” rating for the company. Deutsche Bank reiterated a “buy” rating and issued a $605.00 target price (down from $680.00) on shares of Applied Materials in a research note on Friday, August 14th. Finally, Argus set a $600.00 price target on shares of Applied Materials and gave the company a “buy” rating in a report on Tuesday, August 18th. Thirty research analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $625.76.

Applied Materials Price Performance

The company has a debt-to-equity ratio of 0.20, a current ratio of 2.42 and a quick ratio of 1.79. The company has a market capitalization of $302.32 billion, a PE ratio of 32.84, a PEG ratio of 0.73 and a beta of 1.67. The firm has a 50-day moving average of $440.37 and a 200 day moving average of $445.52.

Applied Materials (NASDAQ:AMAT) last issued its earnings results on Thursday, November 12th. The manufacturing equipment provider reported $4.16 earnings per share for the quarter, topping analysts’ consensus estimates of $4.06 by $0.10. The business had revenue of $10.41 billion during the quarter, compared to analyst estimates of $10.30 billion. Applied Materials had a return on equity of 38.02% and a net margin of 30.05%. Applied Materials has set its Q1 2027 guidance at 4.150-4.550 EPS. As a group, research analysts anticipate that Applied Materials, Inc. will post 12.79 earnings per share for the current fiscal year.

Applied Materials Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Thursday, November 19th will be paid a $0.53 dividend. The ex-dividend date is Thursday, November 19th. This represents a $2.12 dividend on an annualized basis and a dividend yield of 0.6%. Applied Materials’s payout ratio is currently 18.28%.

Insider Activity

In related news, Director Judy Bruner sold 1,000 shares of the stock in a transaction that occurred on Tuesday, September 8th. The shares were sold at an average price of $465.00, for a total transaction of $465,000.00. Following the transaction, the director owned 25,544 shares in the company, valued at $11,877,960. This represents a 3.77% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CAO Adam Sanders sold 725 shares of the stock in a transaction that occurred on Friday, October 2nd. The shares were sold at an average price of $544.56, for a total transaction of $394,806.00. Following 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 disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 9,225 shares of company stock valued at $4,454,181 over the last three months. Insiders own 0.30% of the company’s stock.

Hedge Funds Weigh In On Applied Materials

Several hedge funds and other institutional investors have recently modified their holdings of the company. AlphaGrep UK Ltd bought a new stake in shares of Applied Materials in the third quarter worth $385,000. Meeder Advisory Services Inc. increased its position in Applied Materials by 8.4% during the third quarter. Meeder Advisory Services Inc. now owns 21,908 shares of the manufacturing equipment provider’s stock valued at $11,203,000 after acquiring an additional 1,695 shares during the last quarter. Benjamin Edwards Inc. lifted its holdings in Applied Materials by 3.8% in the third quarter. Benjamin Edwards Inc. now owns 40,587 shares of the manufacturing equipment provider’s stock valued at $20,758,000 after acquiring an additional 1,476 shares during the period. Winslow Capital Management LLC lifted its holdings in Applied Materials by 57.0% in the third quarter. Winslow Capital Management LLC now owns 3,706 shares of the manufacturing equipment provider’s stock valued at $1,895,000 after acquiring an additional 1,346 shares during the period. Finally, BNP Paribas boosted its position in Applied Materials by 20.8% in the third quarter. BNP Paribas now owns 82,784 shares of the manufacturing equipment provider’s stock worth $42,335,000 after purchasing an additional 14,260 shares during the last quarter. 80.56% of the stock is owned by institutional investors.

About Applied Materials

Applied Materials, Inc. develops and supplies equipment, software and services used to manufacture semiconductors and advanced displays. Its technologies help customers build and process materials at the microscopic scale required for chips and other electronic products. The company’s offerings include systems for depositing, removing and modifying materials, as well as inspection, measurement and process-control tools. It also provides equipment and services for advanced semiconductor packaging and supports customers with maintenance, upgrades and manufacturing software.