Applied Materials (NASDAQ:AMAT) Stock Price Down 5.3% - Here's What Happened

Key Points

• Applied Materials shares fell 5.3% in mid-day trading Monday, with the stock dropping from a prior close of $436.62 to around $413.57 on heavier-than-usual volume.
• Despite the pullback, recent analyst sentiment remains constructive: multiple firms raised price targets, and the consensus rating is still “Moderate Buy” with a target of $463.89.
• The company recently beat quarterly expectations, reporting $2.86 EPS and $7.91 billion in revenue, and it also boosted its quarterly dividend to $0.53 per share from $0.46.

Applied Materials, Inc. (NASDAQ:AMAT - Get Free Report) shares were down 5.3% during mid-day trading on Monday . The stock traded as low as $408.09 and last traded at $413.57. Approximately 8,222,778 shares traded hands during mid-day trading, an increase of 11% from the average daily volume of 7,387,261 shares. The stock had previously closed at $436.62.

Analyst Upgrades and Downgrades

Several research analysts have recently weighed in on AMAT shares. Wolfe Research increased their price target on Applied Materials from $500.00 to $550.00 and gave the stock an "outperform" rating in a research note on Friday. DZ Bank upgraded Applied Materials to a "hold" rating in a research note on Monday, February 16th. Susquehanna increased their target price on shares of Applied Materials from $435.00 to $500.00 and gave the stock a "positive" rating in a research report on Thursday, April 9th. Wells Fargo & Company lifted their target price on shares of Applied Materials from $435.00 to $520.00 and gave the stock an "overweight" rating in a research note on Friday. Finally, Weiss Ratings reissued a "buy (b-)" rating on shares of Applied Materials in a research report on Friday, March 27th. Twenty-six analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the company's stock. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $463.89.

Applied Materials Stock Performance

The stock has a market capitalization of $328.21 billion, a P/E ratio of 38.83, a PEG ratio of 1.92 and a beta of 1.66. 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 50-day moving average price of $379.09 and a two-hundred day moving average price of $320.06.

Applied Materials (NASDAQ:AMAT - Get Free Report) last issued its quarterly earnings data on Thursday, May 14th. The manufacturing equipment provider reported $2.86 EPS for the quarter, beating the consensus estimate of $2.68 by $0.18. Applied Materials had a net margin of 29.31% and a return on equity of 36.97%. The company had revenue of $7.91 billion during the quarter, compared to analysts' expectations of $7.68 billion. During the same quarter in the previous year, the company earned $2.39 earnings per share. Applied Materials's revenue for the quarter was up 11.4% on a year-over-year basis. Applied Materials has set its Q3 2026 guidance at 3.160-3.560 EPS. Equities analysts expect that Applied Materials, Inc. will post 11.28 earnings per share for the current year.

Applied Materials Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, June 11th. Investors of record on Thursday, May 21st will be given a $0.53 dividend. This represents a $2.12 dividend on an annualized basis and a dividend yield of 0.5%. This is a boost from Applied Materials's previous quarterly dividend of $0.46. The ex-dividend date is Thursday, May 21st. Applied Materials's dividend payout ratio (DPR) is 17.28%.

Insider Activity at Applied Materials

In related news, Director Judy Bruner sold 2,500 shares of the business's stock in a transaction dated Wednesday, February 25th. The stock was sold at an average price of $391.71, for a total transaction of $979,275.00. Following the completion of the transaction, the director directly owned 26,089 shares in the company, valued at $10,219,322.19. The trade was a 8.74% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CFO Brice Hill sold 5,000 shares of the company's stock in a transaction dated Tuesday, February 17th. The stock was sold at an average price of $361.21, for a total value of $1,806,050.00. Following the completion of the transaction, the chief financial officer owned 138,565 shares in the company, valued at $50,051,063.65. This represents a 3.48% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 12,003 shares of company stock valued at $4,484,189. Company insiders own 0.30% of the company's stock.

Institutional Investors Weigh In On Applied Materials

Several hedge funds have recently bought and sold shares of AMAT. Grandfield & Dodd LLC raised its holdings in Applied Materials by 6.9% during the 3rd quarter. Grandfield & Dodd LLC now owns 269,511 shares of the manufacturing equipment provider's stock valued at $55,180,000 after buying an additional 17,397 shares during the last quarter. First Trust Advisors LP grew its holdings in Applied Materials by 4.9% in the 3rd quarter. First Trust Advisors LP now owns 3,101,772 shares of the manufacturing equipment provider's stock worth $635,057,000 after acquiring an additional 145,050 shares during the last quarter. Canada Post Corp Registered Pension Plan increased its position in shares of Applied Materials by 82.2% in the third quarter. Canada Post Corp Registered Pension Plan now owns 26,893 shares of the manufacturing equipment provider's stock valued at $5,512,000 after acquiring an additional 12,132 shares during the period. Elo Mutual Pension Insurance Co raised its stake in shares of Applied Materials by 21.8% during the third quarter. Elo Mutual Pension Insurance Co now owns 96,712 shares of the manufacturing equipment provider's stock valued at $19,801,000 after acquiring an additional 17,288 shares during the last quarter. Finally, Worth Asset Management LLC bought a new position in shares of Applied Materials during the fourth quarter valued at about $1,531,000. 80.56% of the stock is currently owned by institutional investors.

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.

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