Applied Materials (NASDAQ:AMAT) Stock Falls 2.2% Following Insider Selling

Key Points

• Applied Materials shares fell 2.2% to $530.27 after Chief Accounting Officer Adam Sanders sold 725 shares worth approximately $394,806. The sale was made to cover tax withholding on vested equity awards.
• Wall Street remains broadly optimistic, with the stock carrying a “Moderate Buy” consensus rating and an average price target of $640.20, despite valuation concerns and the recent insider transaction.
• The company reported quarterly EPS and revenue above estimates, with revenue up 24.8% year over year. Partnerships focused on AI chips, advanced packaging and memory technologies further support its long-term growth outlook.

Applied Materials, Inc. (NASDAQ:AMAT - Get Free Report) shares dropped 2.2% during mid-day trading on Tuesday following insider selling activity. The stock traded as low as $526.52 and last traded at $530.27. Approximately 4,858,890 shares were traded during mid-day trading, a decline of 39% from the average daily volume of 7,918,373 shares. The stock had previously closed at $542.28.

Specifically, CAO Adam Sanders sold 725 shares of the business's stock in a transaction on Friday, October 2nd. The shares were sold at an average price of $544.56, for a total transaction of $394,806.00. Following the completion of the sale, the chief accounting officer directly owned 3,181 shares of the company's stock, valued at $1,732,245.36. The trade was a 18.56% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

Wall Street Analysts Forecast Growth

AMAT has been the topic of several research reports. Citigroup reaffirmed a "buy" rating and issued a $710.00 target price (up from $550.00) on shares of Applied Materials in a research report on Monday, August 3rd. Sanford C. Bernstein upped their price target on Applied Materials from $675.00 to $700.00 and gave the stock an "outperform" rating in a research note on Friday, August 14th. Craig Hallum raised their price objective on Applied Materials from $530.00 to $585.00 and gave the stock a "buy" rating in a report on Friday, August 14th. Bank of America decreased their target price on Applied Materials from $720.00 to $650.00 and set a "buy" rating for the company in a report on Friday, August 14th. Finally, Evercore increased their target price on shares of Applied Materials from $515.00 to $700.00 and gave the stock an "outperform" rating in a research report on Friday, June 26th. One equities research analyst has rated the stock with a Strong Buy rating, thirty have given a Buy rating and eight have assigned a Hold rating to the company. According to MarketBeat.com, Applied Materials currently has an average rating of "Moderate Buy" and an average price target of $640.20.

More Applied Materials News

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

• Positive Sentiment: Expanded Intel collaboration supports AI growth narrative. Applied Materials and Intel are working at Applied’s EPIC Center in Silicon Valley and Intel’s Oregon research campus on next-generation transistors, interconnects and advanced packaging for AI chips and systems. The partnership could strengthen AMAT’s position in advanced chip manufacturing and create longer-term equipment demand. Applied Materials and Intel Collaborate to Accelerate Chipmaking Innovations for AI-Driven Computing
• Positive Sentiment: Recent memory and packaging partnerships add to the AI opportunity. Collaborations with KIOXIA and BE Semiconductor Industries are aimed at next-generation memory, packaging and interconnect technologies, reinforcing Applied Materials’ strategy of benefiting from AI-driven semiconductor complexity. Applied Materials Is Up After New AI Chip Memory and Packaging Partnerships Announced
• Positive Sentiment: Analyst commentary remains constructive ahead of earnings. Goldman Sachs identified AMAT as a tactical semiconductor pick, while Zacks cited AI-related wafer-fabrication-equipment demand, strong Applied Global Services growth and capacity expansion. The company’s latest reported quarter also exceeded revenue and EPS expectations. 3 Tactical Chip Stocks to Buy Ahead of Earnings
• Neutral Sentiment: Options activity and heavy online searches indicate elevated investor attention, but neither necessarily confirms the direction or durability of the move. Is the Options Market Predicting a Spike in Applied Materials Stock?
• Negative Sentiment: Valuation and insider selling temper enthusiasm. AMAT trades at a premium valuation, with a reported price-to-sales ratio of 9.59x. Chief Accounting Officer Adam Sanders sold 725 shares to cover tax withholding on vested equity awards; the transaction appears routine but is still a modest negative signal. Applied Materials CAO Sells 725 Shares

Applied Materials Trading Down 2.2%

The firm has a market cap of $420.82 billion, a price-to-earnings ratio of 45.71, a price-to-earnings-growth ratio of 1.50 and a beta of 1.60. The company has a quick ratio of 1.79, a current ratio of 2.42 and a debt-to-equity ratio of 0.20. The business has a 50 day moving average price of $485.98 and a 200-day moving average price of $478.15.

Applied Materials (NASDAQ:AMAT - Get Free Report) last released its quarterly earnings results on Thursday, August 13th. The manufacturing equipment provider reported $3.50 EPS for the quarter, topping the consensus estimate of $3.40 by $0.10. Applied Materials had a return on equity of 38.02% and a net margin of 30.05%.The firm had revenue of $9.12 billion for the quarter, compared to analyst estimates of $8.99 billion. During the same period in the previous year, the company posted $2.48 EPS. Applied Materials's revenue for the quarter was up 24.8% on a year-over-year basis. Applied Materials has set its Q4 2026 guidance at 3.820-4.220 EPS. As a group, research analysts expect that Applied Materials, Inc. will post 12.79 EPS for the current fiscal year.

Applied Materials Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Thursday, November 19th will be paid a $0.53 dividend. The ex-dividend date is Thursday, November 19th. This represents a $2.12 annualized dividend and a dividend yield of 0.4%. Applied Materials's dividend payout ratio is 18.28%.

Institutional Investors Weigh In On Applied Materials

A number of large investors have recently added to or reduced their stakes in AMAT. BlackRock Inc. grew its stake in shares of Applied Materials by 1.6% during the second quarter. BlackRock Inc. now owns 80,212,518 shares of the manufacturing equipment provider's stock valued at $57,993,650,000 after acquiring an additional 1,237,685 shares in the last quarter. State Street Corp lifted its stake in shares of Applied Materials by 85.4% in the second quarter. State Street Corp now owns 69,525,842 shares of the manufacturing equipment provider's stock worth $50,267,184,000 after acquiring an additional 32,018,892 shares in the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its holdings in Applied Materials by 17.1% in the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 10,688,232 shares of the manufacturing equipment provider's stock valued at $2,746,769,000 after purchasing an additional 1,558,749 shares during the last quarter. Amundi boosted its holdings in Applied Materials by 19.0% in the second quarter. Amundi now owns 7,808,207 shares of the manufacturing equipment provider's stock valued at $5,645,344,000 after purchasing an additional 1,246,876 shares during the last quarter. Finally, Van ECK Associates Corp grew its stake in Applied Materials by 16.2% during the 2nd quarter. Van ECK Associates Corp now owns 7,713,599 shares of the manufacturing equipment provider's stock valued at $5,576,932,000 after purchasing an additional 1,073,879 shares in the last quarter. 80.56% of the stock is owned by institutional investors and hedge funds.

About Applied Materials

Applied Materials, Inc is a global supplier of equipment, services and software used to manufacture semiconductor chips, flat-panel displays and other advanced electronic products. Its technologies help customers build and enhance materials at the nanoscale, supporting processes such as deposition, etching, inspection, metrology and packaging.

The company's offerings include semiconductor manufacturing systems, process-control and inspection equipment, and services designed to improve the performance, productivity and longevity of production equipment.

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