Applied Materials (NASDAQ:AMAT) Stock Price Down 7.4% Following Insider Selling

Applied Materials, Inc. (NASDAQ:AMAT) traded down 7.4% during mid-day trading on Thursday following insider selling activity. The stock traded as low as $581.90 and last traded at $603.04. 15,030,862 shares traded hands during trading, an increase of 81% from the average daily volume of 8,287,267 shares. The stock had previously closed at $650.91.

Specifically, CEO Gary E. Dickerson sold 20,000 shares of the business’s 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 transaction, the chief executive officer directly owned 1,599,843 shares in the company, valued at $1,176,236,570.46. The trade was a 1.23% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Gary E. Dickerson sold 58,321 shares of the firm’s stock in a transaction that occurred on Monday, June 29th. The stock was sold at an average price of $700.36, for a total transaction of $40,845,695.56. Following the sale, the chief executive officer owned 1,619,843 shares of the company’s stock, valued at approximately $1,134,473,243.48. The trade was a 3.48% decrease in their position. The disclosure for this sale is available in the SEC filing.

Wall Street Analysts Forecast Growth

AMAT has been the topic of a number of research reports. Erste Group Bank raised shares of Applied Materials from a “hold” rating to a “buy” rating in a report on Monday, April 27th. KeyCorp raised their target price on Applied Materials from $550.00 to $750.00 and gave the stock an “overweight” rating in a research report on Monday. Stifel Nicolaus set a $530.00 target price on Applied Materials in a research report on Friday, May 15th. UBS Group boosted their target price on Applied Materials from $515.00 to $570.00 and gave the company a “buy” rating in a research note on Wednesday, June 10th. Finally, Barclays upped their price target on Applied Materials from $500.00 to $590.00 and gave the company an “overweight” rating in a research report on Thursday, June 11th. Twenty-seven investment analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $553.56.

Key Stories Impacting Applied Materials

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

• Positive Sentiment: Applied Materials was highlighted as a key beneficiary of the AI buildout, with coverage emphasizing that the company is helping power semiconductor expansion through DRAM and advanced packaging innovations. That reinforces the bull case for continued demand from AI chipmakers. Applied Materials, Inc. (AMAT) Discusses DRAM and Advanced Packaging Innovations for AI-Driven Semiconductor Growth Prepared Remarks Transcript
• Positive Sentiment: Zacks named AMAT one of its “Best Momentum Stocks to Buy for July 2nd,” putting it on a Strong Buy momentum list and signaling continued technical strength. Best Momentum Stocks to Buy for July 2nd
• Positive Sentiment: Recent commentary also described Applied Materials as “silently powering the AI boom,” underscoring its leverage to spending by the largest AI and semiconductor companies. Applied Materials Is Silently Powering the AI Boom. Here’s Why.
• Neutral Sentiment: The company’s strong recent earnings and guidance continue to support the long-term narrative: Applied Materials beat on EPS and revenue last quarter, and analysts have kept a generally constructive stance on the stock.
• Negative Sentiment: Investor sentiment was also dampened by insider selling, including CEO Gary Dickerson’s recent sales totaling more than 78,000 shares, which can raise caution even though he still owns a large stake. Applied Materials (NASDAQ:AMAT) CEO Sells $14,704,400.00 in Stock
• Negative Sentiment: Shares also appear to have been hit by broader semiconductor sector weakness and profit-taking after a huge rally, suggesting today’s decline is more about valuation and sector rotation than a deterioration in Applied Materials’ fundamentals.

Applied Materials Stock Performance

The company has a quick ratio of 1.80, a current ratio of 2.51 and a debt-to-equity ratio of 0.22. The company has a market capitalization of $478.79 billion, a PE ratio of 56.62, a PEG ratio of 2.01 and a beta of 1.56. The company has a 50-day moving average price of $491.34 and a two-hundred day moving average price of $386.97.

Applied Materials (NASDAQ:AMAT) last issued its quarterly earnings data on Thursday, May 14th. The manufacturing equipment provider reported $2.86 earnings per share (EPS) for the quarter, topping 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 business had revenue of $7.91 billion for the quarter, compared to analysts’ expectations of $7.68 billion. During the same quarter in the prior year, the firm posted $2.39 EPS. The firm’s quarterly 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. Analysts predict that Applied Materials, Inc. will post 12.11 EPS for the current fiscal year.

Applied Materials Announces Dividend

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

Hedge Funds Weigh In On Applied Materials

A number of large investors have recently modified their holdings of AMAT. Financial Freedom LLC purchased a new position in Applied Materials during the first quarter valued at approximately $28,000. Cornerstone Financial Management LLC purchased a new stake in Applied Materials in the 4th quarter worth approximately $25,000. Whipplewood Advisors LLC boosted its holdings in Applied Materials by 218.8% in the 1st quarter. Whipplewood Advisors LLC now owns 102 shares of the manufacturing equipment provider’s stock valued at $35,000 after purchasing an additional 70 shares during the period. Wilkerson Advisory Group LLC bought a new position in Applied Materials in the 4th quarter valued at $26,000. Finally, MBM Wealth Consultants LLC purchased a new position in shares of Applied Materials during the 1st quarter valued at $38,000. 80.56% of the stock is currently owned by 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.