Applied Materials (NASDAQ:AMAT) Shares Down 2.8% - Here's What Happened

Key Points

• Applied Materials' stock price decreased by 2.8% during trading, ending at $160.61 with a substantial drop in trading volume, down 78% from the average.
• Analyst ratings are mixed; Barclays raised their target to $170.00 while other analysts downgraded their assessments, leading to an overall average rating of "Moderate Buy" with a consensus price target of $193.88.
• The company reported a Q3 EPS of $2.48, surpassing estimates, with revenue rising to $7.30 billion, a 7.7% increase year-over-year.

Applied Materials, Inc. (NASDAQ:AMAT - Get Free Report) was down 2.8% during trading on Friday . The company traded as low as $160.36 and last traded at $160.61. Approximately 1,643,504 shares traded hands during trading, a decline of 78% from the average daily volume of 7,369,457 shares. The stock had previously closed at $165.27.

Analyst Ratings Changes

A number of equities research analysts recently commented on AMAT shares. Barclays increased their price target on Applied Materials from $160.00 to $170.00 and gave the stock an "equal weight" rating in a research report on Monday, July 28th. Daiwa America lowered Applied Materials from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, August 20th. Raymond James Financial restated an "outperform" rating and set a $200.00 price target (down from $225.00) on shares of Applied Materials in a research report on Friday, May 16th. Wells Fargo & Company decreased their price objective on Applied Materials from $215.00 to $205.00 and set an "overweight" rating on the stock in a research report on Friday, August 15th. Finally, Morgan Stanley increased their price objective on Applied Materials from $169.00 to $172.00 and gave the company an "equal weight" rating in a research report on Friday, August 15th. Seventeen equities research analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, Applied Materials presently has an average rating of "Moderate Buy" and a consensus target price of $193.88.

Applied Materials Trading Down 3.4%

The company has a debt-to-equity ratio of 0.28, a current ratio of 2.50 and a quick ratio of 1.76. The business has a 50-day moving average of $182.32 and a 200-day moving average of $165.63. The firm has a market cap of $127.24 billion, a price-to-earnings ratio of 19.05, a P/E/G ratio of 2.34 and a beta of 1.70.

Applied Materials (NASDAQ:AMAT - Get Free Report) last posted its quarterly earnings results on Thursday, August 14th. The manufacturing equipment provider reported $2.48 EPS for the quarter, topping analysts' consensus estimates of $2.36 by $0.12. Applied Materials had a return on equity of 40.96% and a net margin of 23.88%.The business had revenue of $7.30 billion during the quarter, compared to analysts' expectations of $7.21 billion. During the same quarter last year, the company posted $2.12 earnings per share. Applied Materials's quarterly revenue was up 7.7% on a year-over-year basis. Applied Materials has set its Q4 2025 guidance at 1.910-2.310 EPS. Research analysts anticipate that Applied Materials, Inc. will post 9.38 EPS for the current year.

Applied Materials Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, September 11th. Stockholders of record on Thursday, August 21st will be given a $0.46 dividend. This represents a $1.84 dividend on an annualized basis and a dividend yield of 1.2%. The ex-dividend date is Thursday, August 21st. Applied Materials's payout ratio is presently 21.93%.

Insider Buying and Selling

In other Applied Materials news, CAO Adam Sanders sold 562 shares of the business's stock in a transaction that occurred on Tuesday, June 24th. The shares were sold at an average price of $178.60, for a total transaction of $100,373.20. Following the completion of the transaction, the chief accounting officer directly owned 5,300 shares in the company, valued at $946,580. The trade was a 9.59% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 0.24% of the stock is currently owned by corporate insiders.

Institutional Trading of Applied Materials

Institutional investors and hedge funds have recently bought and sold shares of the stock. Shelton Wealth Management LLC grew its position in shares of Applied Materials by 1.5% during the 2nd quarter. Shelton Wealth Management LLC now owns 3,398 shares of the manufacturing equipment provider's stock valued at $622,000 after purchasing an additional 51 shares in the last quarter. Octavia Wealth Advisors LLC grew its position in Applied Materials by 0.8% in the second quarter. Octavia Wealth Advisors LLC now owns 6,200 shares of the manufacturing equipment provider's stock worth $1,135,000 after acquiring an additional 51 shares in the last quarter. Narus Financial Partners LLC grew its position in Applied Materials by 3.8% in the second quarter. Narus Financial Partners LLC now owns 1,433 shares of the manufacturing equipment provider's stock worth $262,000 after acquiring an additional 52 shares in the last quarter. AdvisorNet Financial Inc grew its position in Applied Materials by 2.7% in the second quarter. AdvisorNet Financial Inc now owns 1,958 shares of the manufacturing equipment provider's stock worth $358,000 after acquiring an additional 52 shares in the last quarter. Finally, Encompass Wealth Advisors LLC grew its position in Applied Materials by 3.4% in the second quarter. Encompass Wealth Advisors LLC now owns 1,601 shares of the manufacturing equipment provider's stock worth $293,000 after acquiring an additional 53 shares in the last quarter. 80.56% of the stock is currently owned by institutional investors and hedge funds.

About Applied Materials

Applied Materials, Inc engages in the provision of manufacturing equipment, services, and software to the semiconductor, display, and related industries. The company operates through three segments: Semiconductor Systems, Applied Global Services, and Display and Adjacent Markets. The Semiconductor Systems segment develops, manufactures, and sells various manufacturing equipment that is used to fabricate semiconductor chips or integrated circuits.

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