Applied Materials (NASDAQ:AMAT) Stock Price Down 6.3% – Here’s What Happened

Applied Materials, Inc. (NASDAQ:AMAT)’s share price was down 6.3% on Thursday . The stock traded as low as $218.96 and last traded at $220.23. Approximately 9,235,294 shares changed hands during mid-day trading, an increase of 20% from the average daily volume of 7,686,154 shares. The stock had previously closed at $235.13.

Wall Street Analyst Weigh In

A number of research analysts recently issued reports on AMAT shares. Daiwa Capital Markets reaffirmed a “neutral” rating and set a $170.00 target price (down from $185.00) on shares of Applied Materials in a report on Wednesday, August 20th. Craig Hallum reaffirmed a “hold” rating and issued a $190.00 price objective on shares of Applied Materials in a research note on Friday, November 14th. Cfra Research upgraded shares of Applied Materials to a “hold” rating in a report on Friday, August 15th. Morgan Stanley reduced their target price on shares of Applied Materials from $256.00 to $252.00 and set an “overweight” rating for the company in a report on Friday, November 14th. Finally, JPMorgan Chase & Co. lifted their price target on shares of Applied Materials from $220.00 to $260.00 and gave the stock an “overweight” rating in a research report on Friday, November 14th. Nineteen investment analysts have rated the stock with a Buy rating and fifteen have issued a Hold rating to the company’s stock. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $226.74.

Applied Materials Stock Performance

The firm’s 50 day simple moving average is $218.40 and its 200-day simple moving average is $189.40. The company has a market capitalization of $178.46 billion, a price-to-earnings ratio of 26.70, a P/E/G ratio of 2.95 and a beta of 1.84. The company has a debt-to-equity ratio of 0.28, a quick ratio of 1.76 and a current ratio of 2.50.

Applied Materials (NASDAQ:AMAT) last issued its earnings results on Thursday, November 13th. The manufacturing equipment provider reported $2.17 EPS for the quarter, topping the consensus estimate of $2.11 by $0.06. Applied Materials had a return on equity of 40.96% and a net margin of 23.88%.The company’s revenue was down 3.5% on a year-over-year basis. During the same period in the previous year, the firm earned $2.32 earnings per share. Applied Materials has set its Q1 2026 guidance at 1.980-2.380 EPS. Analysts expect that Applied Materials, Inc. will post 9.38 EPS for the current year.

Applied Materials Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, December 11th. Stockholders of record on Thursday, November 20th will be issued a $0.46 dividend. The ex-dividend date is Thursday, November 20th. This represents a $1.84 dividend on an annualized basis and a dividend yield of 0.8%. Applied Materials’s dividend payout ratio is currently 21.20%.

Insider Activity

In related news, SVP Teri A. Little sold 4,000 shares of the firm’s stock in a transaction that occurred on Wednesday, November 19th. The shares were sold at an average price of $234.08, for a total transaction of $936,320.00. Following the completion of the sale, the senior vice president directly owned 88,351 shares in the company, valued at approximately $20,681,202.08. This trade represents a 4.33% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. 0.24% of the stock is owned by company insiders.

Institutional Investors Weigh In On Applied Materials

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in AMAT. Brighton Jones LLC raised its stake in shares of Applied Materials by 28.0% during the 4th quarter. Brighton Jones LLC now owns 12,674 shares of the manufacturing equipment provider’s stock worth $2,061,000 after purchasing an additional 2,771 shares in the last quarter. PFG Advisors increased its holdings in Applied Materials by 99.3% in the first quarter. PFG Advisors now owns 3,570 shares of the manufacturing equipment provider’s stock worth $518,000 after buying an additional 1,779 shares during the last quarter. One Wealth Advisors LLC bought a new position in Applied Materials during the first quarter valued at approximately $317,000. Principle Wealth Partners LLC lifted its stake in Applied Materials by 23.4% in the first quarter. Principle Wealth Partners LLC now owns 3,796 shares of the manufacturing equipment provider’s stock valued at $551,000 after acquiring an additional 720 shares during the last quarter. Finally, Brookwood Investment Group LLC bought a new stake in Applied Materials in the first quarter worth approximately $375,000. Hedge funds and other institutional investors own 80.56% of the company’s stock.

About Applied Materials

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.