Applied Materials (NASDAQ:AMAT) Stock Price Down 7.4% After Insider Selling

Key Points

• Applied Materials shares fell 7.4% after CEO Gary E. Dickerson disclosed insider sales totaling more than 78,000 shares across two transactions, including a $14.7 million sale on June 30.
• The stock saw heavy trading volume during the drop, with about 15.0 million shares changing hands versus an average of 8.3 million, suggesting a sharp investor reaction.
• Despite the pullback, analysts remain generally constructive: several firms recently raised price targets, and the stock still carries a consensus Moderate Buy rating.

Applied Materials, Inc. (NASDAQ:AMAT - Get Free Report)'s stock price fell 7.4% during mid-day trading on Thursday after an insider sold shares in the company. The stock traded as low as $581.90 and last traded at $603.04. Approximately 15,030,862 shares changed hands during mid-day trading, an increase of 81% from the average session volume of 8,287,267 shares. The stock had previously closed at $650.91.

Specifically, CEO Gary E. Dickerson sold 20,000 shares of the business's stock in a transaction dated Tuesday, June 30th. The stock was sold at an average price of $735.22, for a total value of $14,704,400.00. Following the completion of the sale, the chief executive officer directly owned 1,599,843 shares of the company's stock, valued at $1,176,236,570.46. The trade was a 1.23% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, CEO Gary E. Dickerson sold 58,321 shares of the company's stock in a transaction that occurred on Monday, June 29th. The stock was sold at an average price of $700.36, for a total value of $40,845,695.56. Following the transaction, the chief executive officer directly owned 1,619,843 shares in the company, valued at approximately $1,134,473,243.48. This trade represents a 3.48% decrease in their ownership of the stock. The SEC filing for this sale provides additional information.

Analyst Upgrades and Downgrades

A number of brokerages have commented on AMAT. Wolfe Research raised their price objective on Applied Materials from $500.00 to $550.00 and gave the company an "outperform" rating in a research note on Friday, May 15th. Bank of America upped their target price on Applied Materials from $540.00 to $720.00 and gave the stock a "buy" rating in a research report on Tuesday, June 23rd. Cantor Fitzgerald increased their target price on Applied Materials from $650.00 to $850.00 and gave the stock an "overweight" rating in a report on Monday. Needham & Company LLC lifted their price target on shares of Applied Materials from $440.00 to $530.00 and gave the company a "buy" rating in a research report on Friday, May 15th. Finally, JPMorgan Chase & Co. boosted their price target on shares of Applied Materials from $400.00 to $515.00 and gave the company an "overweight" rating in a research note on Friday, May 15th. Twenty-seven equities research analysts have rated the stock with a Buy rating and eight have given a Hold rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $553.56.

Trending Headlines about Applied Materials

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

• Positive Sentiment: Applied Materials was highlighted as a key beneficiary of the AI buildout, with coverage emphasizing that the company is helping power semiconductor expansion through DRAM and advanced packaging innovations. That reinforces the bull case for continued demand from AI chipmakers. Applied Materials, Inc. (AMAT) Discusses DRAM and Advanced Packaging Innovations for AI-Driven Semiconductor Growth Prepared Remarks Transcript
• Positive Sentiment: Zacks named AMAT one of its “Best Momentum Stocks to Buy for July 2nd,” putting it on a Strong Buy momentum list and signaling continued technical strength. Best Momentum Stocks to Buy for July 2nd
• Positive Sentiment: Recent commentary also described Applied Materials as “silently powering the AI boom,” underscoring its leverage to spending by the largest AI and semiconductor companies. Applied Materials Is Silently Powering the AI Boom. Here's Why.
• Neutral Sentiment: The company’s strong recent earnings and guidance continue to support the long-term narrative: Applied Materials beat on EPS and revenue last quarter, and analysts have kept a generally constructive stance on the stock.
• Negative Sentiment: Investor sentiment was also dampened by insider selling, including CEO Gary Dickerson’s recent sales totaling more than 78,000 shares, which can raise caution even though he still owns a large stake. Applied Materials NASDAQ: AMAT CEO Sells $14,704,400.00 in Stock
• Negative Sentiment: Shares also appear to have been hit by broader semiconductor sector weakness and profit-taking after a huge rally, suggesting today’s decline is more about valuation and sector rotation than a deterioration in Applied Materials’ fundamentals.

Applied Materials Stock Performance

The company has a debt-to-equity ratio of 0.22, a current ratio of 2.51 and a quick ratio of 1.80. The company's fifty day moving average price is $491.34 and its 200 day moving average price is $386.97. The company has a market cap of $478.79 billion, a PE ratio of 56.62, a P/E/G ratio of 2.01 and a beta of 1.56.

Applied Materials (NASDAQ:AMAT - Get Free Report) last released its quarterly earnings results on Thursday, May 14th. The manufacturing equipment provider reported $2.86 earnings per share for the quarter, topping 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 business had revenue of $7.91 billion for the quarter, compared to analysts' expectations of $7.68 billion. During the same period in the previous year, the company earned $2.39 earnings per share. The firm's revenue for the quarter was up 11.4% compared to the same quarter last year. Applied Materials has set its Q3 2026 guidance at 3.160-3.560 EPS. On average, equities research analysts predict that Applied Materials, Inc. will post 12.11 earnings per share for the current year.

Applied Materials Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Thursday, August 20th will be paid a $0.53 dividend. This represents a $2.12 dividend on an annualized basis and a dividend yield of 0.4%. The ex-dividend date is Thursday, August 20th. Applied Materials's payout ratio is presently 19.91%.

Hedge Funds Weigh In On Applied Materials

Several institutional investors have recently modified their holdings of the business. Vanguard Group Inc. grew its stake in Applied Materials by 0.4% in the 4th quarter. Vanguard Group Inc. now owns 76,779,340 shares of the manufacturing equipment provider's stock valued at $19,731,523,000 after purchasing an additional 330,197 shares during the period. Capital Research Global Investors boosted its holdings in shares of Applied Materials by 119.8% in the 4th quarter. Capital Research Global Investors now owns 32,707,049 shares of the manufacturing equipment provider's stock worth $8,405,458,000 after buying an additional 17,829,377 shares during the last quarter. Ameriprise Financial Inc. boosted its holdings in shares of Applied Materials by 40.1% in the 3rd quarter. Ameriprise Financial Inc. now owns 12,520,114 shares of the manufacturing equipment provider's stock worth $2,563,376,000 after buying an additional 3,583,751 shares during the last quarter. Morgan Stanley boosted its holdings in shares of Applied Materials by 3.4% in the 4th quarter. Morgan Stanley now owns 11,470,835 shares of the manufacturing equipment provider's stock worth $2,947,891,000 after buying an additional 373,012 shares during the last quarter. Finally, Norges Bank bought a new position in Applied Materials during the fourth quarter valued at about $2,858,543,000. 80.56% of the stock is 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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