Applied Materials (NASDAQ:AMAT) Trading Down 1.5% After Insider Selling

Applied Materials, Inc. (NASDAQ:AMAT)’s stock price fell 1.5% on Wednesday after an insider sold shares in the company. The company traded as low as $441.12 and last traded at $448.25. 5,041,740 shares traded hands during trading, a decline of 31% from the average session volume of 7,332,874 shares. The stock had previously closed at $454.89.

Specifically, CAO Adam Sanders sold 268 shares of the business’s stock in a transaction dated Friday, May 22nd. The shares were sold at an average price of $434.22, for a total value of $116,370.96. Following the transaction, the chief accounting officer owned 4,280 shares in the company, valued at approximately $1,858,461.60. The trade was a 5.89% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website.

Wall Street Analyst Weigh In

A number of analysts have recently weighed in on the stock. The Goldman Sachs Group increased their target price on shares of Applied Materials from $390.00 to $520.00 and gave the stock a “buy” rating in a report on Friday, May 15th. Wells Fargo & Company upped their price target on Applied Materials from $435.00 to $520.00 and gave the company an “overweight” rating in a research report on Friday, May 15th. Needham & Company LLC increased their price objective on Applied Materials from $440.00 to $530.00 and gave the stock a “buy” rating in a report on Friday, May 15th. Wall Street Zen raised Applied Materials from a “hold” rating to a “buy” rating in a research note on Saturday. Finally, Mizuho upped their target price on Applied Materials from $500.00 to $540.00 and gave the company an “outperform” rating in a report on Wednesday. Twenty-seven analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $466.52.

Applied Materials News Roundup

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

• Positive Sentiment: Applied Materials benefited from a favorable comparison versus KLA in a recent analyst-style piece, which said AMAT has an edge in the AI chip equipment race thanks to broader exposure across semiconductor technologies and stronger growth expectations. KLA vs. Applied Materials: Which Chip Equipment Stock Wins Now?
• Positive Sentiment: The company recently lifted its fiscal Q3 revenue outlook and reported better-than-expected Q2 results, reinforcing investor confidence that demand for semiconductor manufacturing equipment remains strong. Applied Materials (AMAT) Is Up 11.8% After Raising Q3 Outlook And Expanding AI Packaging Alliance
• Positive Sentiment: Applied Materials also announced a new partnership with SCREEN Semiconductor Solutions to advance wafer cleaning technologies at its EPIC Center, a move that could improve yields and support next-generation chip development. Applied Materials Partners with SCREEN To Bring Advanced Wafer Cleaning Technologies to EPIC Center
• Neutral Sentiment: Insider selling by CAO Adam Sanders was small in scale and is unlikely to be a major concern for investors on its own. Applied Materials (NASDAQ:AMAT) CAO Sells $116,370.96 in Stock
• Negative Sentiment: A broader market note warned that momentum stocks can reverse after sharp runs, which may act as a caution flag for AMAT after its recent strong performance. Intel, AMD, and Other Momentum Stocks Look Unstoppable. Look Again.

Applied Materials Stock Performance

The company has a 50-day simple moving average of $391.25 and a two-hundred day simple moving average of $329.61. The company has a debt-to-equity ratio of 0.22, a quick ratio of 1.80 and a current ratio of 2.51. The firm has a market capitalization of $355.89 billion, a P/E ratio of 42.09, a PEG ratio of 1.21 and a beta of 1.66.

Applied Materials (NASDAQ:AMAT) last released its earnings results on Thursday, May 14th. The manufacturing equipment provider reported $2.86 EPS for the quarter, beating analysts’ consensus estimates of $2.68 by $0.18. Applied Materials had a return on equity of 36.97% and a net margin of 29.31%.The company had revenue of $7.91 billion during the quarter, compared to analysts’ expectations of $7.68 billion. During the same quarter last year, the business posted $2.39 EPS. The firm’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. As a group, equities analysts forecast that Applied Materials, Inc. will post 12.02 EPS for the current year.

Applied Materials Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, June 11th. Stockholders of record on Thursday, May 21st will be given a $0.53 dividend. The ex-dividend date of this dividend is Thursday, May 21st. This represents a $2.12 dividend on an annualized basis and a dividend yield of 0.5%. This is a boost from Applied Materials’s previous quarterly dividend of $0.46. Applied Materials’s payout ratio is currently 19.91%.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the business. Capital Research Global Investors grew its holdings in Applied Materials by 119.8% in the fourth quarter. Capital Research Global Investors now owns 32,707,049 shares of the manufacturing equipment provider’s stock worth $8,405,458,000 after purchasing an additional 17,829,377 shares during the period. Norges Bank bought a new stake in shares of Applied Materials in the 4th quarter worth approximately $2,858,543,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its stake in shares of Applied Materials by 617.2% in the 3rd quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 9,129,483 shares of the manufacturing equipment provider’s stock worth $1,869,170,000 after buying an additional 7,856,576 shares during the last quarter. Ameriprise Financial Inc. increased its position in Applied Materials by 40.1% during the 3rd quarter. Ameriprise Financial Inc. now owns 12,520,114 shares of the manufacturing equipment provider’s stock valued at $2,563,376,000 after buying an additional 3,583,751 shares in the last quarter. Finally, Auto Owners Insurance Co raised its stake in Applied Materials by 25,824.4% during the fourth quarter. Auto Owners Insurance Co now owns 3,370,167 shares of the manufacturing equipment provider’s stock valued at $86,610,000 after buying an additional 3,357,167 shares during the last quarter. 80.56% of the stock is currently owned by institutional investors.

About Applied Materials

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.