Applied Materials (NASDAQ:AMAT) Stock Price Down 1.6% – Should You Sell?

Applied Materials, Inc. (NASDAQ:AMAT)’s share price dropped 1.6% during mid-day trading on Tuesday . The company traded as low as $397.37 and last traded at $406.91. Approximately 8,375,542 shares traded hands during mid-day trading, an increase of 13% from the average daily volume of 7,398,173 shares. The stock had previously closed at $413.57.

Applied Materials News Roundup

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

• Positive Sentiment: Argus raised its price target on Applied Materials (AMAT) to $500 from $420 and maintained a buy rating, implying meaningful upside and signaling confidence in the company’s AI infrastructure exposure. Argus raises Applied Materials price target
• Positive Sentiment: Recent articles point to rising earnings estimates for Applied Materials, which typically supports the stock because analyst revisions often reflect improving fundamentals and stronger near-term profit expectations. Surging earnings estimates signal upside
• Positive Sentiment: Coverage highlighting Applied Materials’ international revenue trends and record gross margin suggests the company is benefiting from strong demand, premium product mix, and AI-related spending, all of which can improve investor sentiment. Applied Materials margin reaches historic high
• Neutral Sentiment: Several articles note that AMAT is receiving heavy search interest from investors, reflecting heightened attention rather than a direct catalyst. Investors heavily search Applied Materials
• Negative Sentiment: Morgan Stanley reportedly cut Applied Materials, creating a headwind for sentiment even as other firms remain constructive on the name. Morgan Stanley downgrades Applied Materials

Analyst Upgrades and Downgrades

AMAT has been the subject of a number of research analyst reports. KGI Securities raised shares of Applied Materials to an “outperform” rating and set a $425.00 target price for the company in a report on Friday, February 13th. HSBC initiated coverage on shares of Applied Materials in a report on Friday, May 8th. They issued a “buy” rating and a $517.00 target price for the company. Morgan Stanley reaffirmed an “equal weight” rating and issued a $502.00 target price (up from $454.00) on shares of Applied Materials in a report on Friday. Summit Insights raised shares of Applied Materials from a “hold” rating to a “buy” rating in a report on Friday, February 13th. Finally, 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 report on Tuesday. Twenty-seven investment analysts have rated the stock with a Buy rating and eight have given a Hold rating to the company’s stock. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $465.14.

Applied Materials Stock Performance

The company has a current ratio of 2.51, a quick ratio of 1.80 and a debt-to-equity ratio of 0.22. The stock’s 50 day moving average price is $380.43 and its two-hundred day moving average price is $321.37. The firm has a market capitalization of $322.93 billion, a PE ratio of 38.21, a PEG ratio of 1.92 and a beta of 1.66.

Applied Materials (NASDAQ:AMAT) last issued its quarterly earnings data on Thursday, May 14th. The manufacturing equipment provider reported $2.86 earnings per share for the quarter, topping analysts’ consensus estimates of $2.68 by $0.18. Applied Materials had a net margin of 29.31% and a return on equity of 36.97%. The business had revenue of $7.91 billion during the quarter, compared to analysts’ expectations of $7.68 billion. During the same period last year, the company posted $2.39 EPS. The company’s revenue was up 11.4% on a year-over-year basis. Applied Materials has set its Q3 2026 guidance at 3.160-3.560 EPS. On average, equities analysts expect that Applied Materials, Inc. will post 11.28 earnings per share for the current year.

Applied Materials Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, June 11th. Shareholders of record on Thursday, May 21st will be paid a $0.53 dividend. This represents a $2.12 annualized dividend and a yield of 0.5%. The ex-dividend date of this dividend is Thursday, May 21st. This is an increase from Applied Materials’s previous quarterly dividend of $0.46. Applied Materials’s dividend payout ratio is presently 17.28%.

Insider Activity at Applied Materials

In other Applied Materials news, CAO Adam Sanders sold 534 shares of Applied Materials stock in a transaction that occurred on Tuesday, February 24th. The shares were sold at an average price of $379.16, for a total value of $202,471.44. Following the completion of the sale, the chief accounting officer directly owned 4,625 shares of the company’s stock, valued at approximately $1,753,615. The trade was a 10.35% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Judy Bruner sold 2,500 shares of Applied Materials stock in a transaction that occurred on Wednesday, February 25th. The stock was sold at an average price of $391.71, for a total transaction of $979,275.00. Following the completion of the sale, the director directly owned 26,089 shares of the company’s stock, valued at $10,219,322.19. The trade was a 8.74% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 7,003 shares of company stock valued at $2,678,139 over the last ninety days. 0.30% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the stock. Financial Freedom LLC purchased a new position in shares of Applied Materials during the 1st quarter worth about $28,000. Cornerstone Financial Management LLC purchased a new position in shares of Applied Materials during the 4th quarter worth about $25,000. Whipplewood Advisors LLC lifted its holdings in shares of Applied Materials by 218.8% during the 1st quarter. Whipplewood Advisors LLC now owns 102 shares of the manufacturing equipment provider’s stock worth $35,000 after acquiring an additional 70 shares during the period. Wilkerson Advisory Group LLC purchased a new position in shares of Applied Materials during the 4th quarter worth about $26,000. Finally, MBM Wealth Consultants LLC purchased a new stake in shares of Applied Materials during the 1st quarter valued at $38,000. 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.