Applied Materials (NASDAQ:AMAT) Trading Down 4.3% After Insider Selling

Key Points

• Applied Materials shares fell 4.3% to about $461.67 after CFO Brice Hill sold 7,500 shares for approximately $3.6 million, reducing his holdings by 5.51%.
• The company reported strong quarterly results, with revenue up 24.8% year over year to $9.12 billion and EPS of $3.50, beating analyst estimates; analysts maintain a consensus “Moderate Buy” rating with an average price target of $657.76.
• Applied Materials declared a quarterly dividend of $0.53 per share, equivalent to a $2.12 annualized payout and a 0.5% yield, while management continues to benefit from semiconductor and AI-related demand.

Shares of Applied Materials, Inc. (NASDAQ:AMAT - Get Free Report) fell 4.3% during trading on Friday after an insider sold shares in the company. The company traded as low as $460.51 and last traded at $461.67. Approximately 6,387,529 shares changed hands during trading, a decline of 22% from the average daily volume of 8,182,253 shares. The stock had previously closed at $482.36.

Specifically, CFO Brice Hill sold 7,500 shares of the firm's stock in a transaction that occurred on Tuesday, August 25th. The shares were sold at an average price of $479.25, for a total transaction of $3,594,375.00. Following the sale, the chief financial officer owned 128,613 shares of the company's stock, valued at $61,637,780.25. This trade represents a 5.51% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link.

Analyst Ratings Changes

AMAT has been the subject of several recent research reports. Barclays lifted their target price on shares of Applied Materials from $500.00 to $590.00 and gave the company an "overweight" rating in a report on Thursday, June 11th. KeyCorp upped their price target on shares of Applied Materials from $550.00 to $750.00 and gave the stock an "overweight" rating in a research report on Monday, June 29th. Seaport Research Partners reiterated a "buy" rating and set a $575.00 price objective on shares of Applied Materials in a research note on Friday, August 14th. Mizuho reduced their target price on Applied Materials from $650.00 to $590.00 and set an "outperform" rating for the company in a report on Tuesday. Finally, TD Cowen reaffirmed a "buy" rating and issued a $700.00 price target on shares of Applied Materials in a research note on Friday, August 14th. One investment analyst has rated the stock with a Strong Buy rating, twenty-seven have issued a Buy rating and five have assigned a Hold rating to the company's stock. According to MarketBeat.com, Applied Materials has a consensus rating of "Moderate Buy" and an average price target of $657.76.

Applied Materials News Summary

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

• Positive Sentiment: Semiconductor and AI demand remains strong: Recent coverage points to Applied Materials’ third-quarter revenue of $9.115 billion, up approximately 25% year over year, and net income of $2.538 billion. Management cited record demand visibility from AI-related semiconductor investments, more than 10 new fab projects during the quarter and a $5 billion commitment to its EPIC Center. Fourth-quarter revenue guidance of $10.25 billion and continued share repurchases also support the growth outlook. How Investors Are Reacting To Applied Materials AI-Fueled Backlog, New Fabs And EPIC Center Bet
• Positive Sentiment: New board member adds semiconductor expertise: Applied Materials appointed Akash Palkhiwala, Qualcomm’s CFO and COO, to its board and Audit Committee. His finance, operating and technology-industry experience could strengthen oversight as AMAT benefits from investment in advanced logic, memory, packaging and AI infrastructure. Applied Materials Appoints Akash Palkhiwala to Board of Directors
• Neutral Sentiment: Options market signals wide uncertainty: Options prices imply a broad potential trading range for AMAT more than a year ahead, highlighting substantial volatility and the risk investors already hold in the shares. This is a risk indicator rather than a specific prediction of direction. How Far Applied Materials Stock Can Move In A Year
• Negative Sentiment: CFO stock sale may weigh on sentiment: CFO Brice Hill sold 7,500 shares for approximately $3.6 million, reducing his direct ownership by 5.51%. He still owns 128,613 shares, so the transaction does not alter AMAT’s fundamentals, but insider selling can create a modest short-term confidence concern. SEC Insider Transaction Filing

Applied Materials Trading Down 4.3%

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 company has a market cap of $366.38 billion, a PE ratio of 39.80, a price-to-earnings-growth ratio of 1.03 and a beta of 1.61. The business has a 50-day simple moving average of $553.91 and a 200-day simple moving average of $456.73.

Applied Materials (NASDAQ:AMAT - Get Free Report) last released its earnings results on Thursday, August 13th. The manufacturing equipment provider reported $3.50 earnings per share for the quarter, beating the consensus estimate of $3.40 by $0.10. The company had revenue of $9.12 billion during the quarter, compared to the consensus estimate of $8.99 billion. Applied Materials had a return on equity of 38.02% and a net margin of 30.05%.Applied Materials's revenue was up 24.8% compared to the same quarter last year. During the same period in the previous year, the company posted $2.48 EPS. Applied Materials has set its Q4 2026 guidance at 3.820-4.220 EPS. On average, analysts predict that Applied Materials, Inc. will post 12.73 EPS for the current fiscal year.

Applied Materials Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Thursday, August 20th will be given a $0.53 dividend. This represents a $2.12 annualized dividend and a yield of 0.5%. The ex-dividend date of this dividend is Thursday, August 20th. Applied Materials's dividend payout ratio (DPR) is currently 18.28%.

Institutional Trading of Applied Materials

A number of large investors have recently modified their holdings of the stock. Caldwell Investment Management Ltd. purchased a new stake in Applied Materials during the second quarter worth approximately $1,589,000. Ausdal Financial Partners Inc. purchased a new position in Applied Materials in the second quarter valued at approximately $4,005,000. Evolve Private Wealth LLC lifted its position in shares of Applied Materials by 59.0% during the 1st quarter. Evolve Private Wealth LLC now owns 2,875 shares of the manufacturing equipment provider's stock worth $983,000 after buying an additional 1,067 shares during the last quarter. WealthPlan Investment Management LLC purchased a new stake in shares of Applied Materials during the 4th quarter worth approximately $1,082,000. Finally, Ameritas Advisory Services LLC boosted its holdings in shares of Applied Materials by 183.7% in the 4th quarter. Ameritas Advisory Services LLC now owns 3,073 shares of the manufacturing equipment provider's stock valued at $790,000 after buying an additional 1,990 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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