Applied Materials (NASDAQ:AMAT) Trading Down 2.6% - Time to Sell?

Key Points

• Applied Materials' stock experienced a decline of 2.6%, trading at approximately $156.65 after reaching a low of $156.10.
• Analysts have given the company a consensus rating of "Moderate Buy", with a price target averaging $193.88, despite recent target price cuts from several firms.
• The company reported $2.48 earnings per share, exceeding estimates, and announced a quarterly dividend of $0.46 per share, with a yield of 1.2%.

Applied Materials, Inc. (NASDAQ:AMAT - Get Free Report)'s stock price dropped 2.6% during mid-day trading on Tuesday . The company traded as low as $156.10 and last traded at $156.65. Approximately 1,597,671 shares changed hands during trading, a decline of 78% from the average daily volume of 7,369,237 shares. The stock had previously closed at $160.76.

Wall Street Analyst Weigh In

AMAT has been the topic of a number of analyst reports. The Goldman Sachs Group initiated coverage on Applied Materials in a research report on Thursday, July 10th. They set a "buy" rating and a $225.00 price target on the stock. B. Riley cut their target price on Applied Materials from $250.00 to $215.00 and set a "buy" rating for the company in a research note on Monday, May 12th. Cfra Research upgraded Applied Materials to a "hold" rating in a research note on Friday, August 15th. Wells Fargo & Company cut their target price on Applied Materials from $215.00 to $205.00 and set an "overweight" rating for the company in a research note on Friday, August 15th. Finally, 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 note on Friday, August 15th. Seventeen 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 company. According to MarketBeat.com, Applied Materials has an average rating of "Moderate Buy" and a consensus price target of $193.88.

Applied Materials Stock Performance

The firm has a market capitalization of $125.39 billion, a P/E ratio of 18.74, a price-to-earnings-growth ratio of 2.29 and a beta of 1.77. 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 company has a 50-day moving average of $181.92 and a 200-day moving average of $165.17.

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

Applied Materials Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, September 11th. Investors of record on Thursday, August 21st will be given a dividend of $0.46 per share. This represents a $1.84 annualized dividend and a yield of 1.2%. The ex-dividend date of this dividend is Thursday, August 21st. Applied Materials's dividend payout ratio (DPR) is currently 21.93%.

Insiders Place Their Bets

In other Applied Materials news, CAO Adam Sanders sold 562 shares of the stock in a transaction dated Tuesday, June 24th. The stock was sold at an average price of $178.60, for a total transaction of $100,373.20. Following the completion of the sale, the chief accounting officer directly owned 5,300 shares in the company, valued at approximately $946,580. This trade represents a 9.59% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Insiders own 0.24% of the company's stock.

Hedge Funds Weigh In On Applied Materials

Hedge funds have recently modified their holdings of the company. Skye Global Management LP bought a new stake in shares of Applied Materials in the 4th quarter worth approximately $45,862,000. Value Partners Investments Inc. raised its holdings in shares of Applied Materials by 8.7% in the 4th quarter. Value Partners Investments Inc. now owns 9,896 shares of the manufacturing equipment provider's stock worth $1,608,000 after purchasing an additional 793 shares during the period. Leonard Rickey Investment Advisors P.L.L.C. purchased a new position in Applied Materials in the 1st quarter valued at approximately $230,000. Generali Investments Towarzystwo Funduszy Inwestycyjnych grew its stake in Applied Materials by 12.7% in the 1st quarter. Generali Investments Towarzystwo Funduszy Inwestycyjnych now owns 26,650 shares of the manufacturing equipment provider's stock valued at $3,867,000 after buying an additional 3,000 shares in the last quarter. Finally, Redwood Investment Management LLC grew its stake in Applied Materials by 311.2% in the 1st quarter. Redwood Investment Management LLC now owns 12,924 shares of the manufacturing equipment provider's stock valued at $1,876,000 after buying an additional 9,781 shares in the last quarter. Institutional investors own 80.56% of the company's stock.

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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