Applied Materials (NASDAQ:AMAT) Shares Down 6.3% - Here's What Happened

Key Points

• Shares fell 6.3% intraday to about $220 on Thursday with volume ~9.24M shares, roughly 20% above the stock's average daily volume.
• Applied beat EPS estimates ($2.17 vs. $2.11) but revenue fell 3.5% year‑over‑year; management set Q1 2026 EPS guidance of $1.98–$2.38.
• Analyst views are mixed but lean positive: the consensus rating is a “Moderate Buy” with a $226.74 average price target amid ranges from $190 to $255 among recent reports.

Applied Materials, Inc. (NASDAQ:AMAT - Get Free Report) shares dropped 6.3% during mid-day trading on Thursday . The company traded as low as $218.96 and last traded at $220.23. Approximately 9,235,294 shares traded hands during mid-day trading, an increase of 20% from the average daily volume of 7,686,154 shares. The stock had previously closed at $235.13.

Analyst Upgrades and Downgrades

AMAT has been the subject of several analyst reports. TD Cowen cut their target price on Applied Materials from $220.00 to $200.00 and set a "buy" rating for the company in a research report on Friday, August 15th. Craig Hallum reissued a "hold" rating and set a $190.00 price objective on shares of Applied Materials in a report on Friday, November 14th. Wells Fargo & Company boosted their target price on shares of Applied Materials from $250.00 to $255.00 and gave the company an "overweight" rating in a research note on Friday, November 14th. Mizuho dropped their target price on shares of Applied Materials from $215.00 to $205.00 and set a "neutral" rating for the company in a research report on Friday, November 14th. Finally, Sanford C. Bernstein reissued an "outperform" rating and set a $250.00 price target on shares of Applied Materials in a report on Friday, November 14th. Nineteen research analysts have rated the stock with a Buy rating and fifteen have issued a Hold rating to the company's stock. According to MarketBeat.com, Applied Materials currently has an average rating of "Moderate Buy" and a consensus price target of $226.74.

Applied Materials Trading Down 6.3%

The company has a current ratio of 2.50, a quick ratio of 1.76 and a debt-to-equity ratio of 0.28. The stock has a market cap of $175.44 billion, a P/E ratio of 26.25, a price-to-earnings-growth ratio of 2.95 and a beta of 1.84. The business's fifty day simple moving average is $216.28 and its 200 day simple moving average is $188.70.

Applied Materials (NASDAQ:AMAT - Get Free Report) last announced its earnings results on Thursday, November 13th. The manufacturing equipment provider reported $2.17 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.11 by $0.06. Applied Materials had a net margin of 23.88% and a return on equity of 40.96%. During the same quarter last year, the business earned $2.32 EPS. Applied Materials's revenue for the quarter was down 3.5% compared to the same quarter last year. Applied Materials has set its Q1 2026 guidance at 1.980-2.380 EPS. As a group, analysts expect that Applied Materials, Inc. will post 9.38 EPS for the current year.

Applied Materials Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, December 11th. Stockholders of record on Thursday, November 20th will be paid a $0.46 dividend. This represents a $1.84 annualized dividend and a dividend yield of 0.8%. The ex-dividend date of this dividend is Thursday, November 20th. Applied Materials's dividend payout ratio (DPR) is 21.20%.

Hedge Funds Weigh In On Applied Materials

Several hedge funds have recently added to or reduced their stakes in AMAT. Marquette Asset Management LLC boosted its stake in shares of Applied Materials by 150.0% in the 3rd quarter. Marquette Asset Management LLC now owns 125 shares of the manufacturing equipment provider's stock valued at $26,000 after purchasing an additional 75 shares during the last quarter. Redmont Wealth Advisors LLC acquired a new position in Applied Materials in the third quarter valued at approximately $26,000. Maseco LLP acquired a new position in Applied Materials in the second quarter valued at approximately $30,000. Clal Insurance Enterprises Holdings Ltd boosted its stake in Applied Materials by 435.0% in the first quarter. Clal Insurance Enterprises Holdings Ltd now owns 214 shares of the manufacturing equipment provider's stock valued at $31,000 after acquiring an additional 174 shares during the last quarter. Finally, Activest Wealth Management grew its holdings in Applied Materials by 5,325.0% during the 1st quarter. Activest Wealth Management now owns 217 shares of the manufacturing equipment provider's stock worth $31,000 after acquiring an additional 213 shares during the period. Institutional investors own 80.56% of the company's stock.

Applied Materials Company Profile

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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