Applied Materials (NASDAQ:AMAT) Stock Price Down 1.1% – Should You Sell?

Applied Materials, Inc. (NASDAQ:AMAT)’s stock price fell 1.1% during mid-day trading on Wednesday . The stock traded as low as $255.96 and last traded at $256.99. 3,010,176 shares changed hands during trading, a decline of 60% from the average session volume of 7,560,748 shares. The stock had previously closed at $259.97.

Analyst Upgrades and Downgrades

Several research firms have recently commented on AMAT. Craig Hallum reissued a “hold” rating and issued a $190.00 target price on shares of Applied Materials in a research note on Friday, November 14th. Bank of America upgraded Applied Materials from a “neutral” rating to a “buy” rating and raised their price target for the company from $180.00 to $250.00 in a report on Monday, October 13th. UBS Group raised Applied Materials from a “neutral” rating to a “buy” rating and boosted their price objective for the stock from $250.00 to $285.00 in a report on Tuesday, November 25th. Needham & Company LLC reaffirmed a “buy” rating and issued a $260.00 target price on shares of Applied Materials in a research note on Friday, November 14th. Finally, Cantor Fitzgerald reiterated an “overweight” rating and set a $350.00 price target on shares of Applied Materials in a research report on Tuesday, December 16th. Twenty-one investment analysts have rated the stock with a Buy rating and thirteen have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $246.78.

Applied Materials Stock Down 1.1%

The business’s 50-day moving average is $246.95 and its two-hundred day moving average is $208.50. The firm has a market capitalization of $203.78 billion, a price-to-earnings ratio of 29.61, a P/E/G ratio of 2.66 and a beta of 1.67. The company has a debt-to-equity ratio of 0.32, a quick ratio of 1.87 and a current ratio of 2.61.

Applied Materials (NASDAQ:AMAT) last issued its quarterly earnings data on Thursday, November 13th. The manufacturing equipment provider reported $2.17 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.11 by $0.06. The firm had revenue of $6.80 billion during the quarter, compared to analysts’ expectations of $6.68 billion. Applied Materials had a net margin of 24.67% and a return on equity of 39.26%. The business’s revenue for the quarter was down 3.5% on a year-over-year basis. During the same quarter in the previous year, the company earned $2.32 earnings per share. Applied Materials has set its Q1 2026 guidance at 1.980-2.380 EPS. On average, equities analysts anticipate that Applied Materials, Inc. will post 9.38 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, March 12th. Shareholders of record on Thursday, February 19th will be issued a dividend of $0.46 per share. The ex-dividend date is Thursday, February 19th. This represents a $1.84 annualized dividend and a yield of 0.7%. Applied Materials’s payout ratio is currently 21.20%.

Insider Activity

In related news, SVP Teri A. Little sold 4,000 shares of the business’s stock in a transaction that occurred on Tuesday, November 25th. The stock was sold at an average price of $238.24, for a total value of $952,960.00. Following the completion of the transaction, the senior vice president directly owned 84,351 shares in the company, valued at approximately $20,095,782.24. The trade was a 4.53% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CAO Adam Sanders sold 609 shares of the firm’s stock in a transaction that occurred on Monday, December 1st. The stock was sold at an average price of $255.53, for a total transaction of $155,617.77. Following the sale, the chief accounting officer owned 4,413 shares in the company, valued at $1,127,653.89. This trade represents a 12.13% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 8,609 shares of company stock valued at $2,044,898 over the last 90 days. Corporate insiders own 0.24% of the company’s stock.

Institutional Investors Weigh In On Applied Materials

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Marquette Asset Management LLC increased its holdings in Applied Materials by 150.0% during the 3rd quarter. Marquette Asset Management LLC now owns 125 shares of the manufacturing equipment provider’s stock worth $26,000 after purchasing an additional 75 shares in the last quarter. Redmont Wealth Advisors LLC acquired a new position in shares of Applied Materials during the third quarter worth about $26,000. Maseco LLP acquired a new position in shares of Applied Materials during the second quarter worth about $30,000. Financial Gravity Companies Inc. bought a new position in shares of Applied Materials during the second quarter worth about $31,000. Finally, Manning & Napier Advisors LLC acquired a new stake in Applied Materials in the 3rd quarter valued at approximately $31,000. 80.56% of the stock is currently owned by institutional investors and hedge funds.

Applied Materials Company Profile

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.