Applied Materials (NASDAQ:AMAT) Stock Price Down 8.5% Following Insider Selling

Key Points

• Applied Materials shares fell 8.5% in midday trading after a wave of insider selling, with volume rising 54% above average as investors reacted to the activity.
• Recent SEC filings showed CEO Gary E. Dickerson, along with insiders Prabu G. Raja and Timothy M. Deane, sold significant blocks of stock, though the sales were relatively small percentage-wise compared with their remaining holdings.
• Despite the pullback, Wall Street sentiment remains bullish: multiple analysts raised price targets, including Bank of America to $720, and the stock still carries a consensus “Moderate Buy” rating.

Applied Materials, Inc. (NASDAQ:AMAT - Get Free Report)'s share price dropped 8.5% during mid-day trading on Tuesday following insider selling activity. The company traded as low as $573.51 and last traded at $585.88. 11,995,076 shares changed hands during trading, an increase of 54% from the average session volume of 7,786,365 shares. The stock had previously closed at $640.18.

Specifically, insider Prabu G. Raja sold 10,000 shares of Applied Materials stock in a transaction dated Thursday, June 18th. The shares were sold at an average price of $633.53, for a total transaction of $6,335,300.00. Following the completion of the sale, the insider owned 346,642 shares in the company, valued at $219,608,106.26. This trade represents a 2.80% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, SVP Timothy M. Deane sold 8,621 shares of the business's stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $590.76, for a total transaction of $5,092,941.96. Following the completion of the sale, the senior vice president directly owned 134,631 shares of the company's stock, valued at approximately $79,534,609.56. This trade represents a 6.02% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In other Applied Materials news, CEO Gary E. Dickerson sold 71,727 shares of the company's stock in a transaction dated Tuesday, June 16th. The shares were sold at an average price of $593.75, for a total value of $42,587,906.25. Following the transaction, the chief executive officer directly owned 1,695,164 shares in the company, valued at $1,006,503,625. This represents a 4.06% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink.

Analysts Set New Price Targets

Several research firms have recently weighed in on AMAT. Erste Group Bank raised shares of Applied Materials from a "hold" rating to a "buy" rating in a research note on Monday, April 27th. Argus raised their price objective on Applied Materials from $420.00 to $500.00 and gave the stock a "buy" rating in a report on Tuesday, May 19th. Bank of America lifted their target price on Applied Materials from $540.00 to $720.00 and gave the company a "buy" rating in a research report on Tuesday. Mizuho upped their target price on Applied Materials from $500.00 to $540.00 and gave the stock an "outperform" rating in a report on Wednesday, May 27th. Finally, Needham & Company LLC increased their price target on Applied Materials from $440.00 to $530.00 and gave the stock a "buy" rating in a research report on Friday, May 15th. Twenty-seven investment analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the company's stock. According to MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $501.26.

More Applied Materials News

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

• Positive Sentiment: Bank of America raised its price target on Applied Materials to $720 from $540 and kept a Buy rating, reinforcing a bullish view on the semiconductor equipment maker’s outlook.
• Positive Sentiment: Reuters reported that Applied Materials signed a long-term deal with EssilorLuxottica to develop augmented reality display technology and AI glasses, expanding AMAT’s exposure to emerging AI and wearable markets. Applied Materials (AMAT) and EssilorLuxottica Sign Long-Term Deal, Reuters Reports
• Positive Sentiment: Other recent commentary argues that strong AI infrastructure spending could help justify AMAT’s premium valuation, keeping investor enthusiasm elevated. Applied Materials Is Now More Expensive Than Its Dot-Com Era Peak. AI Demand Justifies the AMAT Stock Valuation.
• Positive Sentiment: Citi also lifted its target on Applied Materials to $710 from $550 and maintained a Buy rating, suggesting continued confidence in semiconductor equipment demand. A Growing Supply Gap Has Analysts Eyeing Applied Materials (AMAT)
• Neutral Sentiment: Applied Materials insider Prabu G. Raja sold 10,000 shares, a filing that may draw attention but does not by itself signal a change in fundamentals. SEC Form 4 filing
• Negative Sentiment: Some recent coverage says AMAT’s valuation has become stretched, which could limit upside if AI and chip-equipment growth expectations cool. Applied Materials Stock Looks Pricey—Can AI Demand Justify the Rally?

Applied Materials Stock Down 8.5%

The business's 50 day moving average is $455.89 and its 200 day moving average is $368.31. 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 market cap of $465.17 billion, a P/E ratio of 55.01, a P/E/G ratio of 1.72 and a beta of 1.67.

Applied Materials (NASDAQ:AMAT - Get Free Report) last announced its earnings results on Thursday, May 14th. The manufacturing equipment provider reported $2.86 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.68 by $0.18. Applied Materials had a return on equity of 36.97% and a net margin of 29.31%.The business had revenue of $7.91 billion for the quarter, compared to analysts' expectations of $7.68 billion. During the same quarter last year, the firm earned $2.39 EPS. The business'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. As a group, equities analysts anticipate that Applied Materials, Inc. will post 12.1 earnings per share for the current fiscal year.

Applied Materials Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Thursday, August 20th will be given a dividend of $0.53 per share. The ex-dividend date of this dividend is Thursday, August 20th. This represents a $2.12 dividend on an annualized basis and a yield of 0.4%. Applied Materials's dividend payout ratio (DPR) is presently 19.91%.

Hedge Funds Weigh In On Applied Materials

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. First Trust Advisors LP raised its position in shares of Applied Materials by 4.9% during 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 in the last quarter. Elo Mutual Pension Insurance Co boosted its holdings in Applied Materials by 21.8% in 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 purchasing an additional 17,288 shares in the last quarter. Worth Asset Management LLC purchased a new position in Applied Materials in the fourth quarter valued at approximately $1,531,000. World Investment Advisors increased its stake in Applied Materials by 4.5% in the fourth quarter. World Investment Advisors now owns 82,296 shares of the manufacturing equipment provider's stock valued at $21,149,000 after purchasing an additional 3,508 shares during the last quarter. Finally, Avity Investment Management Inc. raised its holdings in Applied Materials by 1.1% during the third quarter. Avity Investment Management Inc. now owns 223,211 shares of the manufacturing equipment provider's stock worth $45,700,000 after purchasing an additional 2,376 shares in the last quarter. Hedge funds and other institutional investors own 80.56% of the company's stock.

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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