Applied Materials (NASDAQ:AMAT) Stock Falls 1.9% – Should You Sell?

Applied Materials, Inc. (NASDAQ:AMAT) shares dropped 1.9% during mid-day trading on Monday. The stock traded as low as $491.83 and last traded at $497.53. 4,130,632 shares changed hands during trading, a decline of 47% from the average daily volume of 7,848,524 shares. The stock had previously closed at $507.03.

Analysts Set New Price Targets

AMAT has been the topic of a number of recent analyst reports. HSBC decreased their price target on Applied Materials from $683.00 to $641.00 and set a “buy” rating on the stock in a research report on Friday, August 14th. New Street Research cut their price objective on shares of Applied Materials from $580.00 to $525.00 and set a “neutral” rating for the company in a research report on Friday, August 14th. B. Riley Financial reiterated a “buy” rating and set a $700.00 price objective (down from $790.00) on shares of Applied Materials in a research note on Friday, August 14th. HC Wainwright set a $850.00 price objective on shares of Applied Materials in a research note on Monday, June 29th. Finally, Cantor Fitzgerald reissued an “overweight” rating and issued a $850.00 target price (up from $650.00) on shares of Applied Materials in a report on Friday, August 14th. One analyst has rated the stock with a Strong Buy rating, thirty have issued a Buy rating and eight have given a Hold rating to the stock. Based on data from MarketBeat.com, Applied Materials presently has an average rating of “Moderate Buy” and a consensus target price of $640.20.

Applied Materials Stock Performance

The firm has a market capitalization of $394.84 billion, a price-to-earnings ratio of 42.89, a PEG ratio of 1.41 and a beta of 1.60. The company has a current ratio of 2.42, a quick ratio of 1.79 and a debt-to-equity ratio of 0.20. The stock’s 50-day moving average is $488.88 and its 200-day moving average is $482.67.

Applied Materials (NASDAQ:AMAT) last released its quarterly earnings data on Thursday, August 13th. The manufacturing equipment provider reported $3.50 earnings per share for the quarter, beating the consensus estimate of $3.40 by $0.10. Applied Materials had a return on equity of 38.02% and a net margin of 30.05%. The company had revenue of $9.12 billion for the quarter, compared to the consensus estimate of $8.99 billion. During the same quarter last year, the business posted $2.48 EPS. Applied Materials’s revenue for the quarter was up 24.8% on a year-over-year basis. Applied Materials has set its Q4 2026 guidance at 3.820-4.220 EPS. On average, analysts predict that Applied Materials, Inc. will post 12.79 EPS for the current fiscal year.

Applied Materials Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Thursday, November 19th will be issued a dividend of $0.53 per share. This represents a $2.12 dividend on an annualized basis and a dividend yield of 0.4%. The ex-dividend date is Thursday, November 19th. Applied Materials’s payout ratio is 18.28%.

Insider Buying and Selling at Applied Materials

In other Applied Materials news, CFO Brice Hill sold 7,500 shares of the company’s stock in a transaction dated Tuesday, August 25th. The stock was sold at an average price of $479.25, for a total value of $3,594,375.00. Following the sale, the chief financial officer owned 128,613 shares in the company, valued at approximately $61,637,780.25. The trade was a 5.51% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, CAO Adam Sanders sold 725 shares of Applied Materials stock in a transaction that occurred on Friday, October 2nd. The stock was sold at an average price of $544.56, for a total value of $394,806.00. Following the completion of the transaction, the chief accounting officer directly owned 3,181 shares in the company, valued at approximately $1,732,245.36. This represents a 18.56% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last quarter, insiders have sold 9,225 shares of company stock worth $4,454,181. Insiders own 0.30% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in AMAT. Cornerstone Financial Management LLC bought a new position in shares of Applied Materials in the 4th quarter worth about $25,000. Harborfront Financial Group LLC acquired a new position in shares of Applied Materials in the 2nd quarter valued at about $27,000. Financial Freedom LLC bought a new stake in shares of Applied Materials during the 1st quarter valued at about $28,000. Dakota Community Bank & Trust NA bought a new stake in shares of Applied Materials during the 3rd quarter valued at about $31,000. Finally, Orion Capital Management LLC acquired a new stake in Applied Materials during the second quarter worth approximately $33,000. Institutional investors own 80.56% of the company’s stock.

About Applied Materials

Applied Materials, Inc is a global supplier of equipment, services and software used to manufacture semiconductor chips, flat-panel displays and other advanced electronic products. Its technologies help customers build and enhance materials at the nanoscale, supporting processes such as deposition, etching, inspection, metrology and packaging.

The company’s offerings include semiconductor manufacturing systems, process-control and inspection equipment, and services designed to improve the performance, productivity and longevity of production equipment.