Insider Trading June 22, 2026 05:43 PM

Applied Materials Executive Offloads $6.3 Million in Stock Amid Valuation Concerns

President of Semiconductor Products Group executes transaction as stock trades near 52-week high; Cantor Fitzgerald maintains Overweight rating citing AI-driven demand

By Hana Yamamoto
Share
Twitter Reddit Facebook LinkedIn
AMAT

Raja Prabu G., President of the Semiconductor Products Group at Applied Materials Inc. (NASDAQ:AMAT), executed a transaction involving the sale of 10,000 shares of the company’s common stock on June 18, 2026. The sale generated proceeds of approximately $6,335,300, with shares transacting between $633.51 and $633.79, yielding a weighted average price of $633.53. This insider activity occurs as Applied Materials trades close to its 52-week peak of $641.18, following a substantial 281% return over the trailing twelve months. Market analysis suggests the stock may be overvalued relative to fair value metrics. Post-transaction, Prabu G. retains indirect ownership of 346,642 shares via a living trust and direct holdings of 100,663 shares, which include 100,517 performance share units and restricted stock units. These units are scheduled to vest in installments from December 2026 through 2028, contingent upon continued employment, with actual vesting amounts potentially ranging from 0% to 200% of the target based on performance goals. Concurrently, Applied Materials has announced the launch of SENZ, an integrated visual platform for augmented reality smart glasses designed to streamline manufacturing through waveguide optics and electronic dimming technology. The company also declared a quarterly dividend of $0.53 per share, payable in September 2026, and plans to expand its Southeast Asian workforce by 25%, adding approximately 1,000 positions, primarily in Singapore. Cantor Fitzgerald has raised its price target for AMAT to $650, maintaining an Overweight rating, citing strong demand in chip equipment and leading-edge foundry and logic growth areas. The firm emphasizes the company’s early involvement in the AI sector, with management believing AI will significantly impact compute demand and innovation in materials and system solutions.

Applied Materials Executive Offloads $6.3 Million in Stock Amid Valuation Concerns
AMAT
Summarize with
ChatGPT Perplexity Claude Grok Gemini

Key Points

  • Executed sale of 10,000 shares at $633.53 weighted average price, generating $6.33M proceeds
  • Stock trades near 52-week high of $641.18 after 281% annual return; valuation concerns noted
  • Cantor Fitzgerald raises price target to $650, citing AI-driven chip equipment demand growth

Raja Prabu G., serving as President of the Semiconductor Products Group at Applied Materials Inc. (NASDAQ:AMAT), has executed a transaction involving the sale of 10,000 shares of the company’s common stock. The transaction, finalized on June 18, 2026, generated proceeds totaling approximately $6,335,300. The shares were sold at prices fluctuating between $633.51 and $633.79 per share, resulting in a weighted average sale price of $633.53.

This insider sale takes place as Applied Materials stock trades near its 52-week high of $641.18. The company has delivered a substantial 281% return over the past year. According to InvestingPro analysis, the stock currently appears overvalued relative to its Fair Value, placing it among the most overvalued stocks in the market.

Following this transaction, Mr. Prabu G. indirectly holds 346,642 shares of common stock through a living trust. He also directly holds 100,663 shares of common stock. This direct holding includes 100,517 performance share units and restricted stock units. These units are scheduled to convert into shares of Applied Materials common stock upon vesting. Vesting is set to occur in installments from December 2026 through 2028. The actual number of shares vesting from performance share units may range from 0% to 200% of the target amount, depending on the achievement of specified performance goals. All vesting is contingent on continued employment.

In other recent developments, Applied Materials Inc. announced the launch of SENZ, an integrated visual platform for augmented reality smart glasses. This new platform aims to streamline manufacturing by providing a complete system, which includes waveguide optics and electronic dimming technology. Additionally, the company declared a quarterly dividend of $0.53 per share, payable to shareholders in September 2026.

Applied Materials also plans to expand its workforce in Southeast Asia by 25%, adding approximately 1,000 new positions, primarily in Singapore, as the region becomes more significant for their operations.

Cantor Fitzgerald has raised its price target for Applied Materials to $650, maintaining an Overweight rating. The firm cites demand in chip equipment as a key driver. Cantor Fitzgerald highlighted that leading-edge foundry and logic are significant growth areas for wafer fabrication equipment. Furthermore, the firm reiterated its Overweight rating and $575 price target, noting the company’s early involvement in the AI sector. Applied Materials’ management believes AI will significantly impact compute demand and innovation in materials and system solutions.

Risks

  • Stock appears overvalued relative to fair value metrics per market analysis
  • Performance share unit vesting contingent on continued employment and performance goals (0-200% range)
  • Expansion into Southeast Asia introduces execution risk for workforce scaling

More from Insider Trading

SoFi General Counsel Robert Lavet Offloads Shares to Cover Tax Obligations Jun 22, 2026 Dolphin Entertainment CEO Accumulates Shares Amid Price Pressure Jun 22, 2026 BuzzFeed Director Terence Hill Acquires Shares Amid Financial Restructuring Jun 22, 2026 BuzzFeed Director Sydnie Karras Acquires $24,480 in Company Stock via Private Placement Jun 22, 2026 BuzzFeed Director Eric Gould Acquires Shares Amid Corporate Restructuring Jun 22, 2026