Benzinga | Sep 28, 2021 01:58PM EDT

Why Applied Materials Shares Are Trading Lower

Applied Materials, Inc. (NASDAQ:AMAT) shares are trading lower after New Street Research analyst Pierre Ferragu downgraded the stock from Buy to Neutral and announced a $140 price target.

The stock could also possibly be trading lower in sympathy with the overall technology sector amid a rise in bond yields, which has weighed on growth stock valuations.

The 10-year Treasury yield hit an intraday high of 1.567% Tuesday morning before dipping to around the 1.544% level. The spike in the 10-year note this week comes after the Federal Reserve last week spoke on winding down its ongoing asset purchasing program.

Applied Materials, Inc. provides manufacturing equipment, services, and software to the semiconductor, display, and related industries.

Applied Materials' stock was trading about 6.7% lower at $133.14 per share on Tuesday at the time of publication. The stock has a 52-week high of $146 and a 52-week low of $56.87.