Key insights
- A director at Applied Materials (AMAT) sold over $500,000 in shares while the stock is near its 52-week high and trading above its fair value according to InvestingPro. Despite this insider selling and overvaluation concerns, analysts maintain Overweight ratings and optimistic price targets, citing AI-driven demand and strategic partnerships. The sale by a director, even with remaining holdings and RSUs, introduces a slight bearish signal due to potential concerns about near-term valuation, though the strong analyst sentiment mitigates a more significant impact.
Judy Bruner, a director at Applied Materials Inc. (NASDAQ:AMAT), sold shares of the company’s common stock totaling $507,600 on May 26, 2026. The transaction involved the disposition of 1,128 shares.
The shares were sold in multiple transactions at prices ranging from $450.00 and $450.01 per share, with a weighted average price of $450.00 per share. The sale comes as Applied Materials stock trades near its 52-week high of $462.40, reflecting a remarkable 180% return over the past year, according to InvestingPro data. Following this transaction, Bruner indirectly holds 26,544 shares of Applied Materials common stock through a family trust.
Additionally, Bruner directly holds 741 restricted stock units. These units are scheduled to convert into Applied Materials common stock on a one-for-one basis upon vesting in March 2027, contingent on her continued service as a director through the vesting date.InvestingPro analysis indicates the stock is currently overvalued relative to its Fair Value, placing it among the most overvalued stocks tracked by the platform.
In other recent news, Applied Materials Inc. reported significant developments that may interest investors. Cantor Fitzgerald reiterated an Overweight rating with a $575 price target, highlighting the company’s early involvement in AI-driven compute demand and innovation. Mizuho also adjusted its price target for Applied Materials to $540, reflecting an optimistic outlook for wafer fabrication equipment, with expectations for substantial growth in AI logic and memory fab capacity. Additionally, Applied Materials announced a new partnership with Broadcom to enhance chip packaging technologies for AI systems through its EPIC platform, which aims to increase interconnect density and bandwidth. Lynx Equity defended Applied Materials against recent negative sentiment, maintaining a bullish price target of $540. The firm expressed confidence in the company’s management of the wafer fabrication equipment cycle. These recent developments underscore the company’s strategic focus on AI and semiconductor innovation.
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