Applied Materials (NASDAQ:AMAT) Trading Down 1.7% – Here’s Why

Shares of Applied Materials, Inc. (NASDAQ:AMAT) dropped 1.7% during mid-day trading on Monday . The stock traded as low as $591.68 and last traded at $592.79. 8,563,149 shares were traded during trading, an increase of 3% from the average daily volume of 8,288,638 shares. The stock had previously closed at $603.04.

Applied Materials News Summary

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

• Positive Sentiment: Susquehanna raised its price target on Applied Materials, signaling continued Wall Street confidence in the company’s earnings and growth outlook. Susquehanna Raises Price Target on Applied Materials, Inc. (AMAT)
• Positive Sentiment: Zacks highlighted Applied Materials’ advanced packaging opportunity, saying AI demand could drive more than 50% packaging revenue growth in 2026 as HBM, chiplets, and next-generation packaging gain traction. Can AMAT’s Advanced Packaging Drive Its Next Growth Phase?
• Positive Sentiment: Applied Materials also unveiled SENZ to speed development of AI smart glasses, adding another AI-related product angle that could support long-term investor sentiment. Applied Materials (AMAT) Unveils SENZ To Speed AI Smart Glasses Development
• Neutral Sentiment: Several articles framed AMAT as a possible buying opportunity after a sharp pullback, with some momentum screens and stock-picking pieces still ranking it favorably. Best Momentum Stock to Buy for July 7th
• Negative Sentiment: AMAT was caught in a broader chip-sector selloff tied to weakness in memory stocks and reactions to Samsung earnings, which weighed on semiconductor names across the board. Micron, Samsung, SK Hynix just dragged memory stocks into a bear market
• Negative Sentiment: Recent market coverage also noted AMAT fell sharply alongside other semiconductor stocks during Tuesday’s tech pullback, suggesting near-term volatility despite the longer-term growth story. What Is Going on With Applied Materials Stock on Tuesday?

Analyst Upgrades and Downgrades

Several equities research analysts recently commented on AMAT shares. B. Riley Financial boosted their price objective on shares of Applied Materials from $550.00 to $790.00 and gave the company a “buy” rating in a research report on Friday, June 26th. Deutsche Bank Aktiengesellschaft lifted their price target on Applied Materials from $450.00 to $550.00 and gave the company a “buy” rating in a research note on Friday, May 15th. Morgan Stanley upped their price objective on Applied Materials from $502.00 to $647.00 and gave the stock an “equal weight” rating in a research report on Monday. HC Wainwright set a $850.00 price objective on Applied Materials in a report on Monday, June 29th. Finally, Wolfe Research lifted their target price on Applied Materials from $500.00 to $550.00 and gave the company an “outperform” rating in a research report on Friday, May 15th. One research analyst has rated the stock with a Strong Buy rating, twenty-seven have issued a Buy rating and six have issued a Hold rating to the company. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of $569.65.

Applied Materials Stock Up 2.9%

The firm’s 50-day simple moving average is $506.04 and its 200 day simple moving average is $396.31. 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 stock has a market capitalization of $452.95 billion, a P/E ratio of 53.57, a PEG ratio of 1.65 and a beta of 1.57.

Applied Materials (NASDAQ:AMAT) last announced its quarterly earnings data on Thursday, May 14th. The manufacturing equipment provider reported $2.86 earnings per share for the quarter, beating the consensus estimate of $2.68 by $0.18. The company had revenue of $7.91 billion during the quarter, compared to analysts’ expectations of $7.68 billion. Applied Materials had a return on equity of 36.97% and a net margin of 29.31%.Applied Materials’s revenue for the quarter was up 11.4% compared to the same quarter last year. During the same quarter last year, the company earned $2.39 EPS. Applied Materials has set its Q3 2026 guidance at 3.160-3.560 EPS. As a group, research analysts expect that Applied Materials, Inc. will post 12.11 EPS for the current year.

Applied Materials Dividend Announcement

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

Insider Activity at Applied Materials

In related news, SVP Omkaram Nalamasu sold 24,263 shares of the business’s stock in a transaction on Tuesday, June 16th. The shares were sold at an average price of $593.43, for a total transaction of $14,398,392.09. Following the transaction, the senior vice president directly owned 146,916 shares in the company, valued at approximately $87,184,361.88. The trade was a 14.17% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, SVP Timothy M. Deane sold 8,621 shares of the company’s stock in a transaction on Monday, June 15th. The stock was sold at an average price of $590.76, for a total transaction of $5,092,941.96. Following the sale, the senior vice president directly owned 134,631 shares in the company, valued at $79,534,609.56. This trade represents a 6.02% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 278,088 shares of company stock worth $169,654,805. Insiders own 0.30% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of AMAT. Cornerstone Financial Management LLC bought a new position in Applied Materials during the fourth quarter worth about $25,000. Wilkerson Advisory Group LLC acquired a new stake in shares of Applied Materials in the fourth quarter valued at approximately $26,000. Financial Freedom LLC acquired a new stake in shares of Applied Materials in the first quarter valued at approximately $28,000. Highline Wealth Partners LLC boosted its stake in shares of Applied Materials by 48.7% during the 4th quarter. Highline Wealth Partners LLC now owns 116 shares of the manufacturing equipment provider’s stock worth $30,000 after acquiring an additional 38 shares during the period. Finally, Joseph Group Capital Management bought a new position in shares of Applied Materials during the 4th quarter worth approximately $31,000. 80.56% of the stock is currently owned by institutional investors and hedge funds.

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.